What could Malaysia's arrest of Islamic State-linked Bangladeshi workers mean for the region?

CNA

08-07-2025

KUALA LUMPUR/SINGAPORE: Malaysian authorities' probe into an Islamic State (IS)-linked terror network consisting of migrant Bangladeshi workers in the country is a 'significant cause for concern' for the wider Southeast Asian region, say experts.
However, they warn that extra vigilance must not lead to the 'over-securitisation or blanket suspicions of migrant communities'.
'My view is that the arrests (in Malaysia) reflect broader regional terrorism landscape trends where militant networks are adapting to sustained counterterrorism pressure by establishing external operational bases rather than pursuing traditional territorial control,' said Munira Mustaffa of the Chasseur Group, a security-focused research and consulting firm based in Kuala Lumpur.
Meanwhile, Bangladeshi migrant community leaders and activists in Malaysia denounced those who were arrested, while stressing that a majority of their countrymen are only in Malaysia to eke out a living.
Terror experts CNA spoke to added that the latest wave of arrests in Malaysia stems from internal vulnerabilities within the South Asian nation following a recent regime change there.
This has had 'ripple effects' which they warn may extend to reach into overseas communities, including those in Southeast Asia.
Malaysia Home Minister Saifuddin Nasution Ismail last month announced the arrests of 36 Bangladeshi nationals, who he said were found to be directly involved in a radical militant movement.
Over the weekend, Bangladesh vowed full cooperation with Malaysian authorities and sought more information on the arrests. It also reiterated Dhaka's firm stance against all forms of terrorism, violent extremism and militancy.
Last week, Malaysia's police chief Mohd Khalid Ismail said that the group – which is linked to the IS terror group – had used social media to recruit members from within the migrant community.
They had sought to recruit members to fight in Syria or for IS, and had raised funds to be sent to the Middle Eastern country or to Bangladesh. Khalid added that a total of between 100 and 150 people are suspected to be part of the network.
The arrests of the group in Malaysia – which comes just under a year since the ouster of Bangladesh Prime Minister Sheikh Hasina – may also just be the tip of the iceberg, say experts.
Iftekharul Bashar - a research fellow at the International Centre for Political Violence and Terrorism Research at Singapore's S Rajaratnam School of International Studies - cautioned that the situation could lead to a wave of 'heightened alert in the region'.
When contacted, Singapore's Internal Security Department (ISD) on Tuesday (Jul 8) said that there is 'presently no specific or imminent threat to Singapore related to the reported dismantling of the Islamic State in Iraq and Syria (ISIS) network involving Bangladeshi migrant workers in Malaysia'.
'However, the threat of terrorism to Singapore remains high, due to the volatile global landscape arising from developments such as the ongoing Israel-Palestine conflict, and the persistent threat posed by global terrorist groups like ISIS,' it added.
ISD warned that ISIS, in particular, remains resilient and continues to retain its capacity to conduct and inspire terrorist attacks, both within and beyond conflict zones, further reiterating that Singaporeans and foreigners alike are faced with the risk of becoming radicalised due to the pervasiveness of such radical narratives on the internet and social media.
'The latest reported arrest by the Malaysian authorities is a timely reminder that the threat of terrorism is real,' said ISD.
It added that 'anyone who knows or suspects that a person has been radicalised, or is engaging in extremist activities or propagating extremist teachings, should promptly contact the Internal Security Department (1800-2626-473).'
'ISD takes a serious view of any form of support for terrorism. Any person – foreigner or otherwise – who engages in any activity that threatens to harm Singapore's national security will be firmly dealt with under the law,' it said.
WAKE-UP CALL
Experts CNA spoke to said that Bangladesh's recent regime change creates 'particular vulnerabilities' and that the instability there has created opportunities that extremist groups can exploit.
'It's a common pattern we see after sudden political transitions,' said Munira.
Agreeing, Iftekharul warned that the domestic situation in Bangladesh directly influences the vulnerability of its diaspora.
The largest Bangladeshi diaspora population resides in Saudi Arabia, and there are significant numbers in countries like the United Arab Emirates and Oman. In Southeast Asia, Malaysia and Singapore host a sizeable Bangladeshi migrant population, many of whom work in the construction industry, among others.
Iftekharul added that the weakened state control over extremist elements in Bangladesh can lead to a spillover effect that 'extends their reach into migrant communities in the region'.
'The methods of recruitment and financing also adapt, moving beyond traditional methods to leverage online platforms, making it a regional rather than just a national concern,' he said, adding that recruitment into the terror groups has evolved and no longer targets just blue-collar workers.
'Increasingly, white-collar professionals and students are being drawn into radical ideologies. This 'new generation' of ideologues is often urban, educated, and professionally accomplished, making detection through traditional profiling more challenging,' he said.
Iftekharul added that the Israel-Gaza war, for example, is serving as a potential catalyst for radicalisation, 'as the perception of global Muslim victimisation' may ignite a sense of grievance that extremist groups can readily exploit through online propaganda.
'Social media and encrypted messaging apps also play a critical role in radicalisation, as evidenced by a Bangladeshi police survey finding that a high percentage of extremists were inspired by online propaganda and used encrypted communication,' he said,
He added that the recent arrests were not isolated incidents but merely fit into a 'recurring pattern of radicalisation within the Bangladeshi diaspora as seen in previous cases in both Malaysia and Singapore'.
In January 2016, Singapore announced the arrests of some 27 Bangladeshis over extremist plans after they were found to be contemplating armed jihad overseas and in their homeland.
And in April that same year, Singapore detained eight other Bangladeshi nationals who were members of a group calling itself "Islamic State in Bangladesh" that had planned attacks back home to overthrow the government and establish an Islamic state aligned with IS' caliphate.
'Six of them were convicted of terrorism financing offences. All eight have since been repatriated to Bangladesh,' ISD told CNA on Tuesday.
It added that members of the group disrupted in Singapore had been similarly radicalised with extremist material obtained from the internet, and had also raised funds from among its members to further terrorist activities.
Separately, Malaysia arrested a Bangladeshi permanent resident and community leader Peyar Ahmed Akash in August 2016, who owned a restaurant in the heart of Kuala Lumpur. Wanted by Interpol, it had been alleged that his restaurant became a gathering place for leaders and supporters of a terrorist group. He was deported that September.
Meanwhile, Aizat Shamsuddin - the founder and director of the Initiative to Promote Tolerance and Prevent Violence in Malaysia - said that in the case of the recent arrests in Malaysia, the terror group had used platforms such as WhatsApp and Telegram in order to organise indoctrination sessions, religious study circles and covert meetings.
He added that the authorities had highlighted that recruits who complete the baiah - a formal oath of allegiance often administered online - could be promoted to lead recruitment and outreach.
'This reflects a clear hierarchical structure from initial screening to elite unit formation; and they have operated for quite some time in this country,' said Aizat.
Beyond that, Iftekharul warned that the use of international fund transfer services and e-wallets for fundraising for groups such as the IS in Syria and Bangladesh highlights a growing and harder-to-track trend in terrorist financing.
In the case of the arrests in Malaysia, Aizat said that the group exploited financial capacity and required recruits to pay RM500 (US$118) in membership fees and raised additional funds through voluntary donations and digital platforms.
'These underscore both their transnational connections and operations, exploiting our digital financial system,' he said.
EXPERTS: HOST COUNTRIES MUST ENGAGE DIASPORA COMMUNITIES
Aizat, the terror expert, said that regardless of specific terrorist networks, the Malaysian government must remain vigilant in monitoring any links or activities within the country that support active groups seeking to exploit political instability in Bangladesh.
This, he said, included the IS-linked Neo-Jamaat-ul-Mujahideen Bangladesh (JMB), which was connected to the Dhaka cafe attack in July 2016 involving an individual who had previously studied at Monash University in Malaysia, and the al-Qaeda-affiliated Harkat-ul-Jihad al-Islami Bangladesh (HuJI-B).
In the cafe attack, 22 people - mostly foreigners - lost their lives.
But this vigilance, Aizat said, must not result in the over-securitisation or blanket suspicion of migrant communities.
He said that the authorities should focus on individuals and networks, not ethnic or national identities.
'Key safeguards include building trust with migrant communities, training officers to avoid profiling, ensuring oversight of enforcement actions, and working with civil society and employers to identify risks without stigmatising entire groups,' he said.
He also said that a critical area that required investigation is the abuse of the hawala system, which is an informal method of transferring money that operates outside of traditional banking systems.
Aizat said this allowed terrorist networks to move money internationally through brokers within family, friend, or business circles - without physically transferring funds across borders.
This allowed the bypass of formal financial systems and avoided detection by law enforcement.
'To uncover these channels, authorities must gather intelligence from arrested suspects and, crucially … build trust with migrant communities and their leaders.'
'These relationships can help generate leads and identify individuals acting as eyewitnesses or intermediaries," he said, adding that cooperation with Bangladeshi law enforcement, Interpol, and international financial intelligence units was also essential to fully map the transnational scale of this terrorist network's operations.
Aizat also hoped that the Malaysian government would invest in the social and economic integration of migrant communities to reduce marginalisation and limit the appeal of terrorist recruitment.
Iftekharul of the International Centre for Political Violence and Terrorism Research said a proactive, comprehensive, transparent, and collaborative approach is essential to detect, prevent, and even eradicate the issue.
'The arrests in Malaysia could prompt other nations to reassess their counter-terrorism strategies and vigilance, especially regarding migrant populations,' he added. 'It highlights the need for a collaborative and regionally coordinated approach to counter-terrorism.'
Iftekharul said that firstly, the Bangladeshi government must unequivocally acknowledge and address instances of diaspora radicalisation, as downplaying the problem was counterproductive.
On that note, he added that Bangladeshi diplomatic missions abroad need to intensify community engagement efforts, serving as hubs for promoting social cohesion, interfaith dialogue, and cultural exchange.
He also said that joint research initiatives between Bangladesh and host countries are crucial to understand specific drivers of radicalisation, and sharing information and intelligence is paramount for coordinated counter-terrorism efforts.
Iftekharul said that mass Muslim organisations, both in Bangladesh and within diaspora communities, needed to play a more responsible role in countering extremist influence by developing strong narratives against radicalisation.
'Additionally, pre-departure training for those leaving Bangladesh can educate them on extremist influences and how to avoid them. Host countries like Malaysia and Singapore must effectively engage their large diaspora communities to prevent extremism and build social cohesion,' he said.
BANGLADESHI COMMUNITY LEADERS TAKEN ABACK
For the Bangladeshi community in Malaysia, the news came as a shock and a concern, and fuelled a strong desire to protect their community's reputation especially as many of them are overseas for a better future.
Community leader Jalil Ahmed, who works in construction, said that most Bangladeshi workers are in Malaysia "only to earn a living", and that many workers were angry their names were being sullied by those who joined these groups.
'It is hard for any worker to part with even RM50, so what more RM500? 'There are about one million Bangladeshis in Malaysia and most are here to earn a living for a better future for their families back home,' he told CNA.
As of last year, there were 898,970 Bangladeshi foreign workers in Malaysia, according to official figures. This figure makes them the biggest portion of the total foreign worker population, followed by Indonesians and Nepalis.
However, many believe the number of Bangladeshi workers is much higher than that, taking into account those who are undocumented.
Documented migrant workers make up about 15 per cent of Malaysia's workforce and many work in so-called 3D – dirty, dangerous and demeaning – jobs that are usually shunned by locals.
Bangladeshi workers in Malaysia are primarily employed in five key sectors: manufacturing, construction, plantation, agriculture, and services. In the services sector, they carry out duties such as cleaning, petrol pump attendance, and supermarket work.
Another activist, Mohammad Sami, said that many Bangladeshi migrants in Malaysia were angry and disappointed with the news that had dominated the topic of conversations – both in Malaysia and back home - for many days.
'If they are really guilty of such stupid things, they must be punished,' he told CNA.
Sami, however, suggested a possibility of deception, asking whether those found to be involved had knowingly donated money to the groups.
"Could they have been cheated and told that this money was for the poor back home, for example? I am worried that those caught might have been those who are uneducated, " he said.
He is also worried that there will be repercussions for the entry of Bangladeshi workers into the country in the future.
Saifuddin - Malaysia's Home Minister - had said in May that Bangladeshi workers barred from entering Malaysia for employment before a deadline on May 31 last year kicked in will soon be able to do so, reaffirming Putrajaya's commitment to protect them from 'exploitation and employment fraud'.
'The whole community is going to suffer because of this. I am worried that people would be scared to rent out their homes to Bangladeshi migrants because of this,' said Sami, adding that the Malaysian and Bangladeshi governments had to work closely on the issue.