Foreign Employment: What Is the Controversy Over Malaysia Choosing Its Own Manpower Agencies?
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Nepal has expressed disagreement over Malaysia’s decision to select manpower agencies without any consultation with Nepali authorities, according to officials who say a diplomatic note has been sent to the Malaysian government on this matter.
Malaysia’s Foreign Workers Centralized Management System (FWCMS) website lists 25 Nepali manpower agencies as ‘primary’ and 250 agencies as ‘secondary’.
Following discussions between departmental ministers of the two countries, a diplomatic note was sent, according to Meera Acharya, spokesperson for Nepal’s Ministry of Youth, Labour and Employment.
She clarified that any actions outside Nepal’s existing laws and regulations will not be accepted by the government.
Prime Minister Balendra Shah (Balen) raised issues concerning Nepali workers in talks with his Malaysian counterpart Anwar Ibrahim. Afterward, on the following Thursday, Nepal’s Labour Minister Ramji Yadav and Malaysia’s Human Resources Minister Datuk Seri M. Saravanan held a telephone conversation, the ministry said.
What Is Causing the Discontent?
Officials say the Malaysian side did not engage in any consultation or discussion before selecting manpower agencies to recruit Nepali workers.
According to them, Nepal only learned about the selection after Malaysia publicly announced the chosen manpower agencies.
“We are clear that the worker recruitment process must be transparent. But how were these companies, outside our system and without informing our government or laws, selected? What was the evaluation process?” questioned spokesperson Acharya.
Nepali authorities are querying why exactly 25 agencies were selected instead of 24 or 26 by the Malaysian side.
“If these agencies engage in malpractice in the future, it will be challenging for the government to enforce control and take action,” she added.
“Therefore, any step taken above government law concerning workers and unemployment issues will not be acceptable to the government.”
After listing 25 companies as primary agencies, Nepal’s Labour Minister raised concerns with the Malaysian Human Resources Minister about some agencies being excluded and requested a written response, Acharya confirmed.
“We suggested they send documents, after which we received the idea to send a diplomatic note. Once we get a reply, we will decide the next steps,” she said.
“We will proceed only as directed by the Nepalese government. However, when entering into any foreign company tie-ups, the government must not exceed the limits set by the law.”
Previously, Prime Minister Balendra Shah had a recent telephone conversation with Malaysian counterpart Anwar Ibrahim regarding the flood situation in the Bhote Koshi-Trishuli region.
During that call, Shah raised concerns about agency roles in Nepali worker recruitment, which Anwar later mentioned on social media.
“The recruitment process must be free from exploitation and unfair fees. The process should be fair while protecting workers’ rights and interests,” Anwar wrote.
The Foreign Workers Centralized Management System has not responded via email regarding why Nepali agencies self-selected.
‘Equal Treatment Should Be Ensured’
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Some foreign employment operators have expressed dissatisfaction with the selection being limited to only specific agencies.
Dek Bahadur Khatri, President of the Nepal Foreign Employment Entrepreneurs’ Association, emphasized that agencies with equal rights should receive equal treatment.
“We believe all manpower agencies should have the right to send workers to all countries. Restricting permission to only 25 agencies challenges state mechanisms,” he told the media.
Mentioning that specific health institutions are designated to conduct health checks for foreign-bound workers, Khatri noted a similar policy appears to be followed regarding manpower agencies.
“Therefore, placing one-sided control above the state system is wrong,” he stated.
He argues that since all manpower companies operate under uniform labor laws, the decision to select only certain agencies should be revoked.
“A review is essential, and the currently listed agencies must also be reconsidered. If that is not feasible, then a diplomatic solution with skilled negotiation must be pursued,” Khatri said.
‘…Otherwise Workers Will Face Problems’
Some experts interpret the recent move as an attempt to send workers disregarding official state mechanisms.
Labour expert Meena Paudel explained that manpower agencies in Nepal and Malaysia seem to be asserting dominance above the state.
“They appear to be ignoring formal state mechanisms and trying to establish monopolies in the labor market,” she said.
Paudel warned that if this issue is not managed properly, Nepali workers will be the most affected.
“Our workers could face labor exploitation and unfair contractual conditions.”
“Issues such as human trafficking, assignment to unrelated jobs during unemployment, and failure to provide agreed-upon services might arise.”
“Diplomatic dialogue through formal channels is necessary to resolve these issues,” she recommended.
“Meanwhile, legal proceedings should be initiated against relevant manpower agencies in Nepal. Besides this, Nepal’s possible actions seem limited,” Paudel added.
Malaysia remains an attractive destination for Nepali migrant workers, with a significant number of Nepalis employed there.