Nepal’s Central Investigation Bureau (CIB) has detained four health service operators in Kathmandu and Lalitpur due to complaints about the medical examinations of Nepali migrant workers. This incident heightens tensions with Malaysia regarding the recruitment of foreign workers.
Among those arrested is Kailash Khadka, president of the Nepal Health Professionals Federation, who is also a suspect. Senior Superintendent of Police Anupam Shumsher Rana stated that the operators are being held for an investigation related to the medical examinations of laborers.
Rana mentioned that further details will be provided in an official statement.
This development comes as Nepal and Malaysia are in conflict over Malaysia’s decision to limit the recruitment of Nepali workers to a select group of manpower agencies.
Complaint Regarding Medical Fitness Test
Nepal’s labor authorities have a rule that requires health service providers to compensate workers who are declared medically fit in Nepal but later found unfit in the host country.
Selected health service agencies must cover these costs, with the case evaluated by a specialist committee led by an expert from the health ministry.
However, no cases of compensation have been reported from workers identified as medically unfit. The CIB has not yet disclosed the specific complaint that led to the arrests, so the allegations remain unverified.
Malaysia Limits Recruitment of Nepalis to 25 Agencies
The Malaysian government plans to restrict employers to recruiting Nepali workers only from 25 primary manpower companies and their 250 sub agencies, effective November 6.
While the Malaysian government claims this will enhance transparency and control, Nepal opposes it, arguing that all licensed manpower agencies should have equal opportunities to recruit foreign workers.
The Department of Foreign Employment has issued warrants for the operators of the 25 agencies chosen by Malaysia and has begun investigations into these recruitment agencies.
Foreign Ministry Urges Diplomatic Solutions
Nepal’s Ministry of Foreign Affairs has advised the government to avoid coercive actions against businesses while the dispute is unresolved, recommending a diplomatic approach.
The foreign and labor ministers held a meeting on Tuesday, proposing a bilateral mechanism meeting as a better way to resolve the issues.
Prime Minister Balendra Shah and Malaysian Prime Minister Anwar Ibrahim, along with both countries’ labor ministers, have agreed to continue discussions to address the situation.
Youth, Employment, and Social Security Minister Ramji Yadav, however, supports taking action against the operators. He met with Additional Inspector General Uma Prasad Chaturvedi from the CIB on Wednesday, urging them to act against the businesses, leading to the arrests.
Dispute Over Choice of Medical Centre
Nepal and Malaysia signed a Labour Agreement on October 29, 2018, which includes provisions for medical examinations.
Under the Implementation Arrangement, 36 medical centers associated with Nepal’s biometric medical examination system were required to conduct tests according to Malaysian procedures.
Medical operators not chosen by Malaysia challenged this system in court, claiming it created a monopoly by granting exclusive rights to approved centers for Malaysian employment examinations.
However, the High Court rejected these petitions in 2020, and the Supreme Court did so again in 2023, stating the system is not a monopoly.
The Labour Ministry has set the medical examination fee at Rs 6,500, which employers must pay upfront and can later deduct from the workers’ first month’s salary. Therefore, workers do not need to pay any fees for the examination.
Stalemate Could Affect Worker Recruitment
This dispute impacts Nepali workers seeking jobs in Malaysia, a major destination for Nepal’s overseas workforce.
Nepal has temporarily halted the attestation of demand letters from Malaysia’s selected agencies while investigations continue. Consequently, the recruitment of new workers to Malaysia has stopped.
This situation threatens the livelihoods of thousands of Nepali workers and strains bilateral relations.
While both governments express a willingness to engage in dialogue, Malaysia has maintained its position. The CIB’s investigation into the four medical operators continues independently of the diplomatic issues, with more details expected once an official statement is released.