A shocking exposé reveals how Bangladesh’s political vacuum has sparked a surge in jihadist activities, using Malaysia as a hub. Arrests, digital wallets, and extremist recruitment campaigns expose the vulnerability of Indo-Pacific security. Here’s what regional powers must do before it’s too late.
Malaysia Uncovers IS-Linked Network Amid Bangladesh Unrest, Raising Indo-Pacific Security Fears
The recent dismantling of a recruitment and financial operation tied to the Islamic State (IS) in Malaysia, primarily involving Bangladeshi migrant laborers, has shattered assumptions about regional security. On July 4, 2025, Malaysia’s Inspector General of Police, Mohd Khalid Ismail, disclosed the unearthing of a media-driven extremist cell that had indoctrinated Bangladeshi workers, routed funds to IS in Syria and Bangladesh via digital wallets, and potentially recruited fighters for the global jihadist cause. This revelation starkly highlights the rise of Islamist ideology in Bangladesh following the collapse of Prime Minister Sheikh Hasina’s regime on August 5, 2024. It also exposes gaping vulnerabilities in the Indo-Pacific counter-terrorism frameworks, particularly those connecting Kuala Lumpur’s migrant workforce with eastern Bangladesh.
Since April 2025, Malaysian authorities have detained 36 Bangladeshi nationals linked to the IS-affiliated network. These men, mostly low-wage workers in construction, factories, and petrol stations, were using platforms such as Facebook, WhatsApp, and Telegram to spread radical content and recruit sympathizers. The network demanded an annual fee of RM 500 (roughly US$118) and collected further donations through systems like bKash and Touch ‘n Go to fund IS activities abroad. Malaysian authorities revealed that the encrypted WhatsApp groups contained between 100 to 150 active members. While some lower-level members may face deportation, key operatives will be prosecuted under Malaysia’s counter-terror laws. Officials warn that Malaysia risks becoming a prime launchpad for extremist movements unless swift dismantling and preventive measures are enforced.
Meanwhile, Bangladesh faces a growing Islamist threat following its August 2024 political upheaval. The student-led protests that ousted Sheikh Hasina’s 15-year rule paved the way for a new interim administration led by Nobel Laureate Muhammad Yunus. However, this transition, allegedly backed by the CIA and Pakistan’s ISI, sparked massive instability and revived dormant hardline Islamist groups. Organizations such as Jamaat-e-Islami, Hefazat-e-Islam, Hizb ut-Tahrir, and Ansarullah Bangla Team have regained momentum. The interim government lifted bans on these groups and revoked prior legal restrictions, a decision that coincided with the jailbreak of over 700 militant detainees during the 2024 unrest. In the absence of firm governance, these groups have moved rapidly to establish recruitment centers, reclaim lost territories, and spread their radical influence into previously moderate or secular communities.
Adding to Bangladesh’s turmoil is a surge in sectarian violence. Within weeks of Hasina’s removal, more than 2,000 incidents targeting the Hindu minority were recorded. These included the desecration of 152 temples and the deaths of at least five individuals. Armed cells of Hizb ut-Tahrir attacked Christians and tribal groups, advocating for an Islamic state governed by strict sharia law. This new wave of religious violence has raised alarm among regional powers, particularly India. India, already wary of Bangladesh’s shift toward Pakistan-aligned intelligence, is concerned about ideological spillover. Intelligence assessments from August 2024 to March 2025 show that Islamist cells have gained traction in Bangladeshi universities, mosques, and among digitally connected youth. Incidents along India’s eastern borders, especially in Assam, West Bengal, and the Northeast, have increased, suggesting porous boundaries are being exploited for ideological infiltration.
Malaysia’s exposure to this network reveals deep-rooted structural flaws within ASEAN’s security posture. With heavy reliance on labor from Bangladesh, Indonesia, and Nepal, Southeast Asia has unknowingly created a fertile recruiting ground for extremists. Digital wallets, encrypted chat apps, and absent cross-border intelligence coordination have amplified the threat. ASEAN’s traditional focus on internal disputes, rather than regional vulnerabilities, is proving insufficient. Surveillance alone is not enough; without collaborative grassroots engagement, radicalization will continue unchecked.
The Malaysian crackdown is more than a local security issue—it signals a transnational crisis. The Islamist threat in 2025 is no longer confined to borders. With Bangladesh in disarray, ASEAN’s labor weaknesses exposed, and India-Pakistan tensions escalating, the Indo-Pacific stands at a volatile intersection. Effective security now demands joint action. Bangladesh and Malaysia must create shared intelligence protocols to intercept the misuse of migrant corridors. These partnerships should expand to include India, Singapore, and Indonesia to form an Indo-ASEAN intelligence apparatus capable of addressing the transnational nature of Islamist extremism.
Bangladesh, for its part, must reengage in bilateral intelligence and security cooperation with India. Specialized units focused on extremist infiltration must coordinate law enforcement, border surveillance, and cyber monitoring. Meanwhile, Malaysia and other transit states must address radicalization in the workplace by launching context-sensitive de-radicalization programs with community and diaspora involvement. Surveillance must be balanced with sensitivity to religious and social dynamics to build trust. ASEAN must consider institutional reforms, particularly around the ASEAN Convention on Counter-Terrorism, to standardize the prosecution of extremist financing, encrypted group mobilization, and transnational jihadist fundraising. New treaties could facilitate evidence sharing, extraditions, and joint prosecutions.
Sustainable de-radicalization, however, depends on building social trust. Local NGOs, academic scholars, and diaspora networks must be involved in crafting alternative narratives and support systems for disillusioned youth. Heavy-handed laws, while at times necessary, cannot replace community resilience and dialogue. Malaysia’s July 4 discovery should serve as a regional alarm bell. The exposure of an IS cell among migrant workers may have been neutralized quickly, but its existence exposes a broader crisis that transcends borders.
Bangladesh’s internal instability now threatens ASEAN’s entire security fabric. The Indo-Pacific’s path forward must prioritize collective intelligence, rule-of-law frameworks, and inclusive governance. The options are stark: fragmented enforcement or cohesive regional security. The long-term peace of Southeast Asia depends on choosing the latter.
