The upcoming visit of Bangladesh interim government Chief Adviser Dr. Muhammad Yunus to Malaysia at the invitation of Prime Minister of Malaysia Anwar Ibrahim during August 11-13, 2025 will give a new boost to the bilateral relations between Bangladesh and Malaysia to a new height, sources in Dhaka and Kula Lumpur.

Sources said that Bangladesh will put emphasis on mid-term and long-term strategies on recruitment of Bangladeshi workers in the Malaysian economy as the labour market is saturated now.

“Migration will surely figure prominently during the talks. Both countries are unlikely to sign a deal on recruitment of Bangladeshi workers during the visit, but talks would have a healthy impact on bilateral human resource management. Dhaka  will urge Kuala Lumpur  to give priority in recruiting  Bangladeshi workers  in the coming days,” sources said .

Malaysia aims to reduce dependence on foreign workers to 10 per cent by 2030 from the current 15 per cent.

Speaking during the tabling of the 13th Malaysia Plan (13MP), Prime Minister Datuk Seri Anwar Ibrahim said the multi-tiered levy mechanism will be more comprehensively enforced to encourage employers to shift towards automation, mechanisation, and the hiring of local workers.

According to the 13th Malaysia Plan (13MP), the efforts to reduce dependence on foreign workers, particularly semi-skilled ones, will continue to be implemented to enhance the country’s competitiveness and address challenges related to low wages and productivity. This reduction will take into account the specific needs of each sector, especially for jobs classified as dirty, dangerous and difficult (3D).

The multi-tiered levy mechanism (MTLM) will be implemented in 2026 to create job opportunities and upskilling prospects for local workers, ultimately enabling them to earn better wages. Additional levy collections from the MTLM will be channelled into a newly established trust fund aimed at promoting automation and mechanisation.

The issuance requirements for the temporary employment visit pass will also be tightened, including stricter eligibility criteria for employer and sector transfers, restrictions on business activities and the imposition of shorter maximum employment periods.

All foreign worker applications will be required to go through a clearing house to be established, which will facilitate the matching of participants from the apprenticeship and dual training initiative before approval is granted. This measure is intended to ensure that local workers are prioritised in filling job vacancies.

The Malaysian labour market reform in the five-year national development blueprint for 2026-2030 also will include five other core strategies that will guide the labour market transformation over the next five years. These include accelerating comprehensive wage alignment and better aligning labour supply with industry demand. The government also aims to improve overall worker well-being, increase the participation of older workers, women and persons with disabilities in the workforce, as well as improving labour management.

Sources said Bangladesh is likely to skip some sensitive issue like money laundering and second home issues during talks with the Malaysia delegation.

The money laundering issue is only sensitive, the process of getting back laundered money is ling process. The interim government has raised the issue on money laundering with Singapore and the United Kingdom and some western countries , but the process is very complicative, lengthy and also involves cost as Bangladesh will have to hire legal firms in the recovery process, sources said.

The visit by Malaysian Prime Minister last year marked the first ever visit by any head of the government to visit Bangladesh since Interim government took office which speaks about the level of bilateral relations and more importantly, reflective of the personal friendship between the two dignitaries, diplomatic sources said

Few instruments including on LNG supply, defence cooperation, training, education, business including between chambers are expected to be signed which will add substance to the official visit.

Sources said that Malaysia is  expecting Bangladesh’s strong and bold  initiative in dealing with human trafficking as a group of unscrupulous groups are engaging in this social crime.

Recently, Bangladesh and Malaysian police have agreed to enhance mutual cooperation in combating transnational crimes.

The agreement was made at a bilateral meeting between Bangladesh Police and Royal Malaysia Police held at the Police Headquarters in Dhaka recently.

Inspector General of Police (IGP) of Bangladesh Police Baharul Alam led the Bangladesh delegation while Head of the Counter Terrorism Unit of the Royal Malaysia Police Azman Bin Abd Razak led the Malaysian seven members  delegation.

Bangladesh Police Chief welcomed the Royal Malaysia Police delegation and highlighted the cordial and friendly relations existing between Bangladesh and Malaysia.

During the meeting, the delegation discussed various issues related to terrorism, human trafficking, money laundering and mutual interests between Bangladesh and Royal Malaysian Police.

The police of both countries expressed their hope that they would continue to cooperate in exchanging information on regular basis.

RAB Director General AKM Shahidur Rahman, Special Branch Additional IG,  Md. Golam Rasul, Police Headquarters Additional IG, (Crime and Operations) Khondaker Rafiqul Islam, among others, were present.

Meanwhile, trade, investment, Rohingya, observer status of Bangladesh into ASEAN and social business are expected to  be discussed during the visit of Chief Adviser of Bangladesh Dr Mohammad  Yunus to  Malaysia this month, sources in Dhaka and Kuala Lumpur said.

Bangladesh High Commission in Kuala Lumpur is taking the preparation of Chief Adviser of Bangladesh Dr Mohammad  Yunus, sources said.

“I strongly believe that the visit of Chief Adviser of Bangladesh Dr Mohammad  Yunus to Malaysia will  be critical in further strengthening the cordial bilateral relations existing between the two friendly countries,” said a high official of the foreign ministry.

Meanwhile, Prime Minister of Malaysia Anwar Ibrahim on August 13, 2024 in a phone call with Chief Adviser to the interim government Dr. Muhammad Yunus said that Malaysia stands ready to extend its all out support to the interim government of Bangladesh.

"Malaysia stands ready to extend its all out support to the interim government. Malaysia is ready to be a partner of Bangladesh in its endeavour to become a prosperous and truly democratic state," he said.

Chief Adviser Dr Muhammad Yunus August 27, 2024 sought Malaysia's support for Bangladesh to become a member of the Association of Southeast Asian Nations (ASEAN).

Malaysia is going to be the next chair of ASEAN from January 2025, and the Rohingya issue will also be discussed, said a Foreign Ministry official.

Dr Muhammad Yunus sought the support as Malaysian High Commissioner to Bangladesh Haznah Md Hashim paid a courtesy call on him at the State Guest House Jamuna . "Bangladesh can be a bridge between ASEAN and SAARC," said the Chief Adviser.

Also speaking on the occasion, Hashim said Kuala Lumpur was going to be the next chair of ASEAN and she would convey Professor Yunus's message to the Malaysian authorities regarding the ASEAN membership.

The Chief Adviser said Bangladesh has a very good relationship with Malaysia and recalled his friendship with Malaysian leaders, including Prime Minister Anwar Ibrahim and former Malaysian prime ministers Mahathir Mohamad.

During the visit to Malaysia in July, Chief Adviser to the interim government Dr. Muhammad Yunus is likely to discuss with Malaysian Prime Minister Anwar Ibrahim   raise the issue of money laundering with Anwar Ibrahim during his short visit and seek his intervention into the matter.

Several thousand Bangladeshis have their second home in Malaysia and dozens of Bangladeshis linked with previous Bangladesh Awami League are allegedly siphoned off several billion US dollars out of the country during the last 15 years in countries like the USA, Canada, the UK, Portugal, Singapore, Malaysia, UAE and Australia.

The labour market in Malaysia has been closed since June, 2024 and Chief Adviser Dr. Muhammad Yunus is also likely to raise the issue with Malaysian Prime Minister Anwar Ibrahim and reopen the labour market soon.

Human Resources Minister of Malaysia Steven Sim in Kuala Lumpur said that the  recruitment of foreign workers into Malaysia must be based on actual sectoral needs and demands, not driven by business interests or profit-making motives.

The statement issued by the Human Resources Ministry recently  followed Sim's courtesy meeting with Dr Asif Nazrul, adviser to the Ministry of Expatriates' Welfare and Overseas Employment of Bangladesh, and Lutfey Siddiqi, Bangladesh's Special Envoy for International Affairs.

According to the ministry, Malaysia and Bangladesh agreed to strengthen the technical coordination mechanism for labour management through the Joint Working Group (JWG) Meeting.

In the meeting, the ministry also shared Malaysia’s long-term strategy to reduce dependence on foreign workers.

The ministry stated that the government was in the process of implementing a multi-tier levy system that would encourage the hiring of local workers while fostering a more sustainable and competitive labour market.

Meanwhile, the ministry said Malaysia expressed appreciation to the Bangladesh government for recognising Malaysia's efforts in tackling abuse and misconduct in labour management processes.

"During the meeting, Bangladesh also confirmed that Malaysia was not involved in any of the alleged misconduct previously raised and expressed their support for Malaysia's firm and principled stance on the issue of human trafficking," it added, according to  Bernama

At least seven Malaysian universities have Yunus Centre, promoting social business ideas he champions and his three-zero concepts.

Malaysian companies, including several owned by its sovereign funds, have invested more than $5 billion in Bangladesh and are now willing to invest more, including in education.

A second Malaysian car manufacturer has signed an agreement with a Chattogram-based company for distributing and assembling cars.

Malaysia says they could be a desired destination for medical tourism, saying the Bangladeshi people can do essential medical treatment in the country at an affordable price…….

Malaysia says they could be a desired destination for medical tourism, saying the Bangladeshi people can do essential medical treatment in the country at an affordable price.

Meanwhile, Malaysia is the 8th largest investor in Bangladesh, the official mentioned.

"Apart from manpower issues, other ongoing cooperation including potential areas will come up for discussion," he said.

Meanwhile, Bangladesh High Commissioner to Malaysia Shameem Ahsan while talking to this  correspondent said “We have significant trade relations with Malaysia. Our two-way trade is around US$ 4 billion. The trade relationship between Bangladesh and Malaysia remains strong, though it has faced challenges due to the recent unrest in Bangladesh. However, the long-standing partnership, supported by Malaysia’s demand for Bangladeshi products and Bangladesh’s dependence on Malaysian imports like palm oil and machinery, provides a solid foundation for recovery. Both countries have mutual interests in maintaining and expanding this economic relationship.

Economic diplomacy and ongoing negotiations to explore new avenues for bilateral cooperation also help offset some of the temporary disruptions caused by the unrest. It is notable that, during the January-June, 2024 period the bilateral trade between the two countries was USD 1.53 billion.

Malaysia is currently the 8th largest investor to Bangladesh. A total of 386 Malaysian companies are registered and doing business smoothly in Bangladesh. The total FDI stock of Malaysia in Bangladesh is 856.23 million US$ [December 2023] Bangladesh has further room for Malaysian investors to forge mutually beneficial economic ventures. We have been urging potential investors to invest more in Bangladesh, particularly in the 100 Economic Zones.  Malaysia can also build a dedicated country-specific “Economic Zone” like China, Japan, South Korea and India to take advantage of Bangladesh’s geo-economic position between/among China, India, and ASEAN.

Malaysia is currently the 8th largest investor to Bangladesh. A total of 386 Malaysian companies are registered and doing business smoothly in Bangladesh. The total FDI stock of Malaysia in Bangladesh is 856.23 million US$ [December 2023] Bangladesh has further room for Malaysian investors to forge mutually beneficial economic ventures. We have been urging potential investors to invest more in Bangladesh, particularly in the 100 Economic Zones.  Malaysia can also build a dedicated country-specific “Economic Zone” like China, Japan, South Korea and India to take advantage of Bangladesh’s geo-economic position between/among China, India, and ASEAN.

During his visit to Malaysia, Chief Adviser Professor Muhammad Yunus will meet  former Malaysian Prime Minister Mahathir Mohamad to help Bangladesh in its bid to become a member of the Association of Southeast Asian Nations (ASEAN).