The calls come after human resources minister R Ramanan on Thursday rejected a Bloomberg report claiming Malaysia was planning to adopt a new foreign worker recruitment system developed by Bestinet Sdn Bhd.
Ramanan described the report as unverified and inaccurate. He said the report contained details that were not known to him as the minister responsible for tabling proposals to the Cabinet.
Rights group Tenaganita said the government must clearly state whether companies such as Bestinet would be involved in any future recruitment system.
It said this was necessary given Malaysia’s long and problematic history of opaque recruitment systems, monopolies and private intermediaries profiting from migrant labour.
“We have seen too many cycles of systems being introduced without proper consultation, only to result in higher costs, debt bondage and worker exploitation,” it said in a statement to FMT.
“The government must commit to a transparent, rights-based system subject to independent oversight – not one driven by private commercial interests.”
North-South Initiative executive director Adrian Pereira said Malaysia’s track record on migrant worker protection had been so poor that “if we throw a stone at any migrant worker, there is a high chance that he is a victim of forced labour”.
He said the government must be fully transparent about decisions on recruitment reforms, adding that there had been a lack of engagement with stakeholders, particularly the migrant community.
“Engagement has been absent for a very long time. So what is going on?” he told FMT.
The Bloomberg report, citing unnamed sources, said a new recruitment platform was in the offing, on a proposed 12-year contract. Known as the Universal Recruitment Advanced Platform or Turap, it could allow employers to hire workers directly through a digital portal, with firms paying about US$1,000 per application.
Tenaganita said while reducing intermediaries could help curb abuse by recruitment agents, direct hiring without strong safeguards could simply shift exploitation from agents to employers.
It warned that employers could take on recruitment roles without proper accountability, while workers could still be burdened with hidden fees through informal channels, leaving them in debt before starting work.
“Direct hiring alone does not end exploitation. What is needed is a comprehensive, evidence-based national labour migration policy that protects workers at every stage,” it said.
It added that workers must not be burdened with recruitment fees, employment contracts must be standardised and enforceable, and effective independent grievance mechanisms must be in place.
Pereira also said past government-to-government recruitment arrangements with Dhaka had still involved intermediaries and were never truly direct hiring systems.
He said broader consultation was needed, particularly through the National Labour Advisory Council, which is meant to function as a tripartite platform for labour policy discussions.
Ramanan said Bestinet had operated the current Foreign Workers Centralised Management System system since 2011, and that it was used by multiple ministries.
He said the system had proven effective, including resisting cyberattacks during the Covid-19 pandemic, and had received international recognition, including a United Nations-related award.
However, Tenaganita and Pereira disputed these claims, citing cases of migrant workers who reportedly paid recruitment fees of as much as RM25,000, while others arrived without valid work permits, or proper arrangements for accommodation or employment.
“A system can be technologically sound but still fundamentally unjust. Digitalisation must not be mistaken for reform,” Tenaganita said.
Bestinet is currently facing legal scrutiny, with Bangladesh reportedly seeking Malaysia’s assistance to detain and extradite its founder, Aminul Islam, and associate, Ruhul Amin, over allegations of money laundering, extortion and trafficking-related activities. Aminul has denied the allegations.