Investigation Underway into 25 Manpower Companies Approved to Send Workers to Malaysia

The government has instructed the Department of Foreign Employment to investigate the decision allowing only 25 manpower companies to send workers to Malaysia. The ministry has ordered a probe into these companies’ establishment history, business operations, and the basis for their authorization to send workers to Malaysia. The department is preparing to seek explanations from an additional 250 manpower companies on why they should be included on the list, and plans to correspond with the embassy to halt prior approvals and certification processes. (Sept 12, Kathmandu)

The controversy arose after Malaysia released a list of 25 manpower companies permitted to recruit workers from Nepal. The Ministry of Youth, Labour, and Employment has directed the Foreign Employment Department to investigate the business records of these companies since their establishment and the grounds for their authorization to send workers to Malaysia. Previously, Malaysia had authorized only these 25 companies to send workers.

According to Dik Bahadur Khatri, President of the Nepal Foreign Employment Entrepreneurs Association, during enforcement actions, an additional 250 companies were designated as sub-agents under the 25 principal companies. Following the ministry’s directive, the department plans to request explanations from these 250 companies about their inclusion on the list. Department Director General Navaraj Dhakal confirmed that the enforcement procedure is underway and that all steps are being taken in accordance with Nepal’s constitution and legal frameworks.

Business representatives have voiced concerns that limiting the number of companies authorized to send workers to Malaysia could lead to syndication within the foreign employment sector. President Khatri noted that, although Nepal has nearly 1,100 registered manpower companies, granting such limited rights is inappropriate. He stated, “If such a system is implemented, 25-30% of the total workers will be fully affected.” The government, however, intends to focus its investigation on these 25 companies authorized for Malaysia.