Employment in Malaysia: Current Status of Nepal’s Decision to Send Workers Through Only 25 Companies
There remains uncertainty regarding Malaysia’s decision to allow Nepali workers to be sent only through selected manpower agencies, according to diplomatic sources. “So far, they have not shown any indication of reversing their decision,” a source said. Discussions are ongoing about how to proceed, a matter confirmed by officials from the Ministry of Youth, Labour and Employment. The ministry’s spokesperson, Meera Acharya, stated that efforts are underway to find a mutually acceptable solution for both parties.
Malaysia recently designated 25 Nepali manpower agencies as primary agencies and 250 others as auxiliary ones under its Foreign Workers Centralized Management System (FWCMS). Labour experts from Nepal have suggested adopting a strategy of “collective negotiations” in cooperation with countries like India, Sri Lanka, and Bangladesh, which also send workers to Malaysia. Acharya revealed that Nepal has sent diplomatic notes to Malaysia seeking clarification on the basis of this selection but has yet to receive any response.
“We are investigating the criteria and methodology used to select these companies, which so far remain unavailable,” she said. When queried, the selected Nepali agencies could not provide clear information regarding the criteria either. According to Acharya, 23 out of the 25 companies have requested removal from the list, and written evidence of these requests is secured by the ministry. Although discussions continue, no final decision has been made yet, she added.
Labour experts warn that Malaysia’s move to proceed with Nepali worker recruitment exclusively through this system risks the formation of syndicates. Labour specialist Ganesh Gurung accused the Malaysian government of involving company interests by making such decisions without clear criteria. “Malaysia has implemented a system where higher fees are charged, and instead of regulation, syndicate formations are emerging. Consequently, Nepali companies are participating in this syndicate,” he said. Gurung emphasized that the Malaysian government also bears responsibility in the recruitment process. “There is a problem with Malaysia’s process, which facilitates syndicate formation through various means.”