The Nepal government has requested Malaysia to remove 25 Nepali foreign employment companies from the Foreign Worker Centralised Management System (FWCMS) amid a dispute over the recruitment of Nepali workers.
This request followed the 25 manpower companies, registered as ‘principal’ agencies, asking the Nepali government to withdraw their names from the system.
Based on this request, the Ministry of Youth and Employment sent a letter to the Malaysian government via the Ministry of Foreign Affairs.
The dispute began when Malaysia designated these 25 Nepali companies as ‘principal’ agencies for worker recruitment and included about 250 other companies as supporting agencies.
Nepal has objected, arguing that all licensed foreign employment agencies in the country should be treated equally under its foreign employment laws.
Nepal Opposes Principal-Support Agency Structure
Initially, Malaysia recognized only 25 manpower companies from around 1,200 licensed foreign employment agencies in Nepal as registered recruitment agencies in the FWCMS.
Following objections from Nepal, Malaysia later added around 250 other companies as supporting agencies under the 25 principal companies.
The Nepal government has stated that it does not accept this principal-support structure, highlighting that there is no provision for it in the Nepal-Malaysia labor agreement.
Nepal insists its Foreign Employment Act does not permit limiting recruitment to a select number of agencies or subordinating others.
25 Firms Request Removal from FWCMS
The 25 manpower companies listed in Malaysia have requested to be removed from the FWCMS by the Nepal government.
According to the Nepal Association of Foreign Employment Agencies, these companies do not wish to participate in a system that favors a few agencies in the recruitment process.
The government has launched an investigation into how the 25 companies were selected and how the additional 250 companies became associated with them.
The Department of Foreign Employment has requested details on their transactions, previous recruitment involvement for Malaysia, and the criteria for their selection.
Additionally, they have asked for business and financial records from the past five fiscal years, including recruitment data, charges, taxes, and audited financial statements.
Malaysia Upholds FWCMS Recruitment System
Malaysia argues that foreign workers should be recruited from Nepal through agencies registered under its FWCMS. They claim that this new system will enhance government control and help eliminate illegal practices like extra charges and fraud.
This disagreement has affected the recruitment of Nepali workers for Malaysia.
Previously, the Department of Foreign Employment halted new approvals for sending manpower to Malaysia from the 250 agencies linked to the 25 principal companies while investigations are ongoing.
Nepal has clarified that it does not wish to halt employment in Malaysia but insists that all licensed Nepali manpower agencies should have equal recruitment opportunities.
Ongoing Bilateral Talks
The dispute has been addressed through diplomatic and high-level discussions between the two countries.
Nepal argues for a resolution through bilateral arrangements, emphasizing that the recruitment process must adhere to its laws and the labor agreement established between both nations.
A spokesperson from the Ministry of Labour indicated that the government has forwarded the list of manpower agencies seeking removal from the FWCMS to Malaysia and is working towards resolving the broader disagreement.
The issue remains under discussion as both countries strive to find a solution that allows Nepali workers to continue accessing employment opportunities in Malaysia while addressing concerns about the recruitment system.