25 Nepali foreign employment companies to withdraw from Malaysia’s worker recruitment system

Twenty-five Nepali foreign employment companies have agreed to withdraw from Malaysia's Foreign Worker Centralized Management System (FWCMS). This decision comes after significant opposition from Nepali employment businesses, including the Nepal Association of Foreign Employment Agencies, which had suspended the membership of the listed companies.

Foreign employment agencies argued that limiting recruitment to only 25 out of approximately 1,200 licensed Nepali companies could foster a syndicate and restrict competition. They expressed concerns that this arrangement would concentrate access to Malaysian employment opportunities among a small group of companies.

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The companies concluded that a system limiting recruitment opportunities to only them would not be in their long-term interest and agreed to leave the system collectively.

The 25 companies ultimately concluded that the restrictive system was not in their long-term interest and decided to withdraw collectively. They are also required to submit a commitment to the Nepal Association of Foreign Employment Agencies. The Ministry of Youth, Labour and Employment hosted discussions with representatives of the affected companies. Separately, Minister Ramji Yadav emphasized to Malaysia's acting ambassador that labor migration issues should be resolved through bilateral dialogue and agreement between the two nations.

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Issues related to labour migration should be resolved through bilateral dialogue and agreement between the two countries.