Malaysia has declined Nepal’s request to permit all licensed manpower agencies to recruit and send workers to the country.
The Malaysian government will maintain its current system, allowing only 25 main manpower agencies and 250 sub-agencies to handle recruitment. This decision has caused concern in Nepal, as it limits competition and contradicts foreign employment regulations.
As a result, thousands of Nepalese workers are left uncertain while seeking employment in Malaysia, a top destination for Nepalese migrants.
Malaysia Maintains Its Recruitment System
The disagreement stems from Malaysia’s Foreign Worker Centralized Management System.
Only 25 Nepalese manpower companies will be selected as main recruitment agencies, with an additional 250 as sub-agencies.
Nepal has objected to this arrangement, arguing that all licensed manpower agencies should have equal opportunities to send workers.
Malaysia defends its recruitment system, claiming it enhances transparency, oversight, and helps prevent illegal fees, fraud, and abuse of migrant workers.
Reasons for Nepal’s Objection
Nepal’s Ministry of Youth, Labour, and Employment believes this system violates their laws and the bilateral labor agreement with Malaysia.
According to Nepal’s foreign employment laws, all licensed recruitment agencies should operate under proper regulations.
Nepal has urged Malaysia to reassess its selection process and allow all eligible agencies to recruit.
This situation raises concerns among manpower entrepreneurs in Nepal, as limiting recruitment to select companies could reduce competition.
New Worker Recruitment Halted
Due to the ongoing dispute, new Nepalese workers seeking jobs in Malaysia are currently unable to proceed. As of October 15, 2026, new applicants cannot register for health checks because the FWCMS system is inactive.
Registration for biomedical checks will only resume once the selected main agencies in Malaysia are operational.
Nepal disagrees with this recruitment method and is seeking to maintain the previous system until a resolution is reached.
The Ministry of Labour has proposed a working group meeting between the two countries on November 18/19 or December 2/3 to address the issue and potentially re-sign the Memorandum of Understanding.
Diplomatic Efforts
Nepal is attempting to diplomatically persuade Malaysia to revise its policy. Labour Minister Ramji Yadav has reached out to Malaysian Human Resources Minister Ramanan Ramakrishnan, advocating for equal opportunities for all licensed Nepalese recruitment agencies.
Nepal has formally communicated its concerns to Malaysia, but Malaysia has stood by its recruitment system.
Discussions have taken place regarding the significance of labor collaboration and the protection of migrant workers, but the conflict remains unresolved.
Ongoing dialogue between the two countries will be crucial in determining how the recruitment process for Nepalese workers will be managed.
Impact on Nepalese Workers
Malaysia is a significant employment hub for Nepalis, with around 400,000 Nepalese nationals working there.
This period is critical for many Nepalese families who depend on overseas employment.
If new recruitment remains stalled for an extended time, it could delay job opportunities for potential migrant workers and create uncertainty for families.
This situation highlights the need for clear recruitment processes, regulation of manpower agencies, and effective collaboration between destination and labor-sending countries.
Nepal and Malaysia need to reach an agreement on recruitment guidelines before normal operations for new workers can resume. The timeline for this resolution remains uncertain.