Malaysia rejects Nepal’s demand to allow all agencies to recruit workers — Kathmandu Post
Malaysia has rejected Nepal’s request to allow all licensed employment agencies to recruit and send Nepali workers to the country. Kuala Lumpur will retain the approved list of 25 main agencies and 250 sub-agencies, Kathmandu Post reports.
In a diplomatic note, the Malaysian side confirmed its support for the centralized Foreign Workers Centralized Management System (FWCMS). Agencies not included on the approved list will not be able to send workers to Malaysia from November 5. The country’s government says the system is intended to make recruitment more transparent and protect labor migrants from exploitation.
Dispute over the recruitment system
Nepal’s Ministry of Labour and Employment said it is holding internal consultations following Malaysia’s response. Nepalese authorities insisted that all licensed employment companies should have equal and competitive opportunities to send workers.
Nepal has already sent Malaysia three official letters expressing concern over the restrictive recruitment mechanism. Malaysia responded with two diplomatic notes defending its position and refusing to review the decision.
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The dispute intensified after Nepali recruitment agencies asked to exit the FWCMS platform, citing unfair practices and cartelization. Nepal’s Labor Minister Ramji Yadav also told his Malaysian counterpart Ramanan Ramakrishnan that the restriction to 25 main agencies and 250 sub-agencies contradicts Nepal’s laws on foreign employment.
Until the parties resolve the issue of selecting agencies, the recruitment of new Nepali workers to Malaysia has effectively been suspended. Nepalese authorities have stopped attesting labor demand letters submitted by agencies on the FWCMS list, while the Department of Foreign Employment is inspecting these companies.
Minimum wage increase
Separately, Malaysia announced an increase in the monthly minimum wage from 1,700 to 2,000 ringgit starting in June 2027. Prime Minister Anwar Ibrahim presented the decision during the 2027 budget presentation in parliament. According to him, the increase will benefit more than four million workers.
Minimum wage rules also apply to foreigners, including citizens of Nepal, Bangladesh, and Indonesia. At the same time, micro, small, and medium-sized enterprises with annual turnover of less than 50 million ringgit will not be required to immediately introduce the new rate. About 400,000 Nepalis work in Malaysia.
