KATHMANDU: Employment opportunities for Nepali workers in Malaysia face uncertainty following the implementation of Malaysia’s Foreign Worker Centralised Management System (FWCMS), which restricts recruitment to a select group of manpower agencies. Malaysia has designated 25 primary manpower companies and 250 associated agencies to handle recruitment from source countries, triggering a diplomatic dispute with Nepal.
The government of Nepal has formally expressed its disagreement with this policy, stating that it contradicts the bilateral labor agreement and domestic laws. The Ministry of Labour, Employment and Social Security has issued a diplomatic note to the Malaysian government, requesting adherence to the existing labor pact. Consequently, the Department of Foreign Employment has instructed the 25 listed agencies to suspend their involvement with the system and has halted the pre-approval process for the 250 associated firms pending an investigation.
Department Director General Navaraj Dhakal stated that the government remains committed to ensuring fair competition in foreign employment and is actively coordinating through diplomatic channels. This current friction mirrors the 2018-2019 crisis, when disputes over health screening and recruitment mechanisms led to a 19-month suspension of Nepali workers heading to Malaysia. Stakeholders fear a similar shutdown could occur if the issue remains unresolved.
Dhik Bahadur Khatri, president of the Nepal Association of Foreign Employment Agencies, criticized the new system, arguing that it promotes a syndicate and creates unhealthy market competition. Labor expert Dr. Jeevan Baniya noted that Malaysia is attempting to regulate its global recruitment supply chain to address international concerns regarding worker exploitation. He suggested that Nepal should seek a multilateral diplomatic approach, collaborating with other affected nations like Bangladesh, the Philippines, and Sri Lanka, rather than acting alone.
Malaysia remains a preferred destination for Nepali youth, with a minimum wage of 1,700 ringgit. Approximately 400,000 Nepalis are currently employed in the country. Both government officials and industry experts warned that if the dispute is not resolved through diplomatic dialogue, it could lead to increased financial exploitation of workers and negatively impact remittance inflows.
