KATHMANDU: The Malaysian government has rejected Nepal’s proposal to allow all licensed recruitment agencies to send workers to Malaysia.

The Malaysian Ministry of Human Resources informed the Nepal Ministry of Labour, Employment and Social Security that it would maintain its existing system, which limits recruitment to a specific number of agencies.

According to a letter from Malaysian Human Resources Minister Dato Sri Ramanan Ramakrishnan to Labour Minister Ramji Yadav, the Malaysian cabinet discussed Nepal’s request. Nepal had formally requested, via a diplomatic note on Sept. 11 and a ministerial phone call on Sept. 24, that all 1,114 active Nepali recruitment agencies be integrated into Malaysia’s Foreign Workers Centralised Management System (FWCMS).

Malaysia remains firm on its policy of utilizing only 25 principal recruitment agencies, each supported by 10 associate agencies. Defending the decision, Malaysia stated that limiting the number of agencies facilitates better monitoring, auditing, and regulation. The ministry argued that this structure allows for greater accountability, ensuring that worker complaints and labor disputes are addressed more effectively, thereby better protecting the rights and interests of Nepali workers.

Malaysia further claimed that working with a limited number of vetted agencies reduces risks such as unethical recruitment practices, contract substitution, and the charging of excessive fees to workers. The government noted that this system minimizes administrative burdens, increases transparency, and prevents the use of fraudulent documents. The letter emphasized that Malaysia values its bilateral relationship with Nepal and remains committed to working closely with the Nepali labor ministry to ensure safe, dignified, and mutually beneficial labor migration.