[🇧🇩] Evolving partnership between Bangladesh and Malaysia

[Saif]

Malaysia’s state Sarawak to recruit Bangladeshi workers

Malaysia’s state Sarawak has agreed in principle to recruit more Bangladeshi workers, appreciating their contribution to the construction sector, while both sides explored expanding cooperation in key economic areas. The development came during a meeting between Bangladesh High Commissioner

thefinancialexpress.com.bd

Malaysia’s state Sarawak to recruit Bangladeshi workers

BSS

Published :
Apr 16, 2026 21:16
Updated :
Apr 16, 2026 21:16

Malaysia’s state Sarawak has agreed in principle to recruit more Bangladeshi workers, appreciating their contribution to the construction sector, while both sides explored expanding cooperation in key economic areas.

The development came during a meeting between Bangladesh High Commissioner to Malaysia Monjurul Karim Khan Chowdhury and Sarawak Premier Abang Haji Abdul Rahman Zohari at the Premier’s Office in Kuching, according to a message received.

During the meeting, both sides emphasised enhancing cooperation in agriculture, renewable energy and labour migration.

The High Commissioner highlighted Bangladesh’s strengths in agriculture and human resources, expressing interest in contributing to Sarawak’s development through increased supply of skilled, semi-skilled and general workers.

The Sarawak Premier welcomed the proposals, particularly in agriculture and renewable energy-key pillars of the region’s development strategy-and praised the role of Bangladeshi workers in the construction sector.

The two sides also discussed signing a Memorandum of Understanding (MoU) to regulate migration and explored another MoU in agriculture. They further discussed potential collaboration in renewable energy, especially solar power, including knowledge and green technology exchange.

Both sides reaffirmed their commitment to strengthening bilateral ties and maintaining regular communication to implement the outcomes of the discussions.​

 

[Saif]

Malaysian firm to be dropped from Jhilmil Residential Project

The Rajdhani Unnayan Kartripakkha (RAJUK) signed the agreement in 2017 during the tenure of the then Awami League government with the Malaysian company BNG Global Holdings and Consortium to implement the flat construction project under a Public-Private Partnership (PPP) arrangement.

en.prothomalo.com

Malaysian firm to be dropped from Jhilmil Residential Project

Arifur Rahman
Dhaka
Published: 21 Apr 2026, 19: 38

A Malaysian firm is set to lose the contract to construct 14,000 flats in the Jhilmil Residential Project in Keraniganj, near Dhaka, as the government moves to cancel the nine-year-old agreement over various irregularities, inconsistencies, and a lack of financial capacity.

A proposal to cancel the agreement will be placed at a meeting of the Cabinet Committee on Economic Affairs, to be held today, Tuesday with Finance Minister Amir Khasru Mahmud Chowdhury in the chair, according to a source at the Ministry of Housing and Public Works.

The Rajdhani Unnayan Kartripakkha (RAJUK) signed the agreement in 2017 during the tenure of the then Awami League government with the Malaysian company BNG Global Holdings and Consortium to implement the flat construction project under a Public-Private Partnership (PPP) arrangement.

According to the agreement, BNG Global was to construct 14,000 flats for middle-income people on 160 acres of land in the Jhilmil residential area.

A total of 85 buildings were planned—60 buildings of 20 storeys (including semi-basement) and 25 buildings of 25 storeys (including basement). In total, 13,720 flats were to be built in three categories: 9,120 flats of ‘A’ category with an area of 1,550 square feet; 2,576 flats of ‘B’ category with 1,750 square feet; and 2,024 flats of ‘C’ category with 2,400 square feet.

The project, located about two kilometres west of the China-Bangladesh Friendship Bridge over the Buriganga River, was estimated to cost Tk 99.79 billion. The entire investment was supposed to be made by BNG Global. However, the company has not invested a single penny, and no construction work has taken place over the past nine years either. As a result, the current government is moving to cancel the agreement.

Documents prepared for submission to the Cabinet Committee on Economic Affairs show that, under the agreement, a total of 12 conditions were to be fulfilled—four by RAJUK and eight by BNG Global. While RAJUK fulfilled three conditions, BNG Global did not fulfil any.

According to the rules, the conditions were to be met within 180 days of signing the PPP agreement. On 18 February 2024, BNG Global was asked through a letter to fulfil its conditions, but it failed to do so.

The documents also show that in October 2023, the Ministry of Housing and Public Works requested the Ministry of Foreign Affairs to verify the information provided by BNG Global.

The Ministry of Foreign Affairs instructed the Bangladesh High Commission in Malaysia to investigate the company. The evaluation report later stated that there were inconsistencies in the company’s financial and other information. According to the report, as of February 2023, the company’s net profit was only $696, indicating that it would not be appropriate for the firm to implement the Jhilmil Residential Park project.

Additionally, the Ministry of Foreign Affairs reported that the office of the project’s financing institution, Boulevard Capital Partner Limited, could not be found at the address it had provided.

At the same time, a report by an international credit rating agency found that Boulevard Capital is a single-owner entity with a paid-up capital of 10,000 Hong Kong dollars, equivalent to Tk 141,000 in Bangladeshi currency—insufficient to finance such a project.

Further document review reveals that a Chinese company, Jiang Construction Engineering Company Limited, filed a complaint against BNG Global at the Chief Metropolitan Magistrate’s Court in Dhaka. The complaint alleges that BNG Global Holdings Limited and SVC Jhilmil Residential Limited jointly raised $24 million in Bangladesh and misappropriated the funds through fraud. The allegation is currently under investigation by the Police Bureau of Investigation (PBI).

Considering these issues, both RAJUK and the Ministry of Housing and Public Works have recommended cancelling the agreement with BNG Global.​

 

[Saif]

The Financial Express | First Financial Daily of Bangladesh

Get latest stock share market news, financial news, economy news, politics news, breaking news, Bangladesh economy news at The Financial Express.

thefinancialexpress.com.bd

Shariah board protection is not enough: lessons from Malaysia

M Kabir Hassan

Published :
Apr 27, 2026 00:09
Updated :
Apr 27, 2026 00:09

Bangladesh Bank Governor Md. Mostaqur Rahman recently pledged “full protection” and functional independence for Shariah board members. It is a refreshing departure from the status quo in the central bank. For the very first time, an in-office governor actually held a discussion with Shariah scholars, acknowledged past supervisory failures, and promised an era where boards can operate meaningfully and fearlessly. This surely matters, but after thirty years of studying Islamic banking governance and serving on the AAOIFI Ethics and Governance Board, I have to be honest: sincere pledges are never a substitute for legally enforceable architecture. Bangladesh’s Islamic banking sector doesn’t need more reassurances; all it needs is a system.

The timing of the governor’s intervention is unsurprising. The sector is just now crawling out from the worst governance crisis in its history. Unfortunately, we witnessed the S. Alam Group systematically capture at least six Shariah-based banks, resulting in an estimated Tk 1.9 lakh crore in irregular lending. Five distressed institutions were forced into a merger, forming what is now called Sammilito Islami Bank. These weren’t just small errors; we are talking about non-performing loans that reached 90 per cent of some of these banks’ portfolios. In 2021, while conducting a study with Mufti Masum regarding defaulted loans in Bangladesh, we documented exactly how this happens. Political interference, regulatory forbearance, and a lack of accountability create a vacuum. These were failures of institutional design in which bank owners treated Shariah boards as decorative appendages rather than real supervisors to guide them.

THE BLUEPRINT FROM MALAYSIA: Malaysia’s Shariah governance was not built overnight. It took them four decades of iterative legal work, starting with the 1983 Islamic Banking Act, and culminating in the 2019 Shariah Governance Policy Document. I have taught at several Malaysian universities and co-authored research on their legal evolution, and I can claim with conviction that their success isn’t just about “good rules.” It is about a layered integration of Shariah principles with uncompromising financial oversight.

There are three specific lessons here for Bangladesh. First, we need the legal supremacy of a central Shariah authority. In Malaysia, the Shariah Advisory Council (SAC) is the final word. Their rulings are binding on courts and banks alike. This stops the “fatwa shopping” I’ve documented in my research (Arab Law Quarterly, 2014), in which banks essentially seek an opinion that suits their bottom line. Bangladesh Bank’s new Shariah Advisory Board is a start, but without statutory teeth, it will just be another committee that powerful borrowers ignore when it suits them best and is convenient.

Second, we must address the internal infrastructure. Malaysia mandates a full ecosystem at every bank, including a dedicated Shariah secretariat and internal audit functions. Most Islamic banks in Bangladesh treat this as an afterthought. My research on board characteristics (International Journal of Islamic and Middle Eastern Finance and Management, 2019) shows a clear link: when Shariah boards are under-resourced, risk-taking goes up. This finding speaks directly to Bangladesh’s predicament. The Governor’s pledge might address the mere symptoms, but it doesn’t build the internal machinery that makes protection sustainable.

Finally, a Shariah violation must be treated as a regulatory violation. The S. Alam crisis wasn’t just a religious failure, a Shariah non-compliance; it was money laundering and fraud hidden behind an Islamic label. A Shariah board cannot be successful in stopping crimes like this unless it has access to the transaction-level data.

FOUR FRONTS FOR REFORM: So, where do we go from here? The path forward requires moving on at least four fronts simultaneously.

The first priority is the Islamic Banking Act. Frankly speaking, it is an anomaly that our Islamic banks have operated for forty years without a dedicated legal framework. I first wrote about this “original sin” of our sector in 2003 (in the Textbook on Islamic Banking), and it remains the biggest hurdle today. We cannot keep relying on central bank circulars to govern a multi-trillion-taka industry.

Then there is the issue of human capital. We cannot simply import a Malaysian framework and expect it to work in Bangladesh without trained professionals. We need a massive investment in scholars, auditors, and compliance officers. In my current role as chair of the AAOIFI Education Board, I’ve seen how standardised certification can transform an institution in just a few years. But this will not come to fruition without money and intent.

We also need to mandate separate core banking systems for Islamic operations. As long as Islamic banks use software designed for interest-based transactions, their Shariah compliance will remain superficial. It’s like trying to run a modern operating system (OS) onobsolete hardware:the system crash is theinevitable, eventual outcome.

Lastly, we must insulate these reforms from our political cycles. Our banking sector has been a playground for political interests for too long. My research on political systems and bank performance (Journal of Financial Stability, 2017) found that Islamic banks outperform their peers only when shielded by robust governance frameworks. We need legislation that can survive a change in government.

A NOTE OF REALISM: We must be realistic; Malaysia built its system during a time of relative stability. Our capital adequacy is below the Basel III minimums, and depositor confidence is on a knife-edge.

Having said that, we must also know that being in a difficult position is no excuse for incrementalism. The Governor’s recent meeting was a necessary, welcome beginning, but it cannot be the end. Shariah boards do not need “protection” in the form of a promise. They need power, the kind of power that is legally defined, institutionally supported, and backed by the full weight of the law.

Kabir Hassan is Professor of Finance and Moffett Chair at the University of New Orleans, the 2016 IDB Prize Laureate in Islamic Banking and Finance, and a member of the AAOIFI Ethics and Governance Board.​