Malaysia will implement a new system for recruiting Nepali workers from November 5, 2026, despite formal objections from Nepal, which fears the arrangement could create a monopoly. The new Foreign Worker Centralised Management System (FWCMS) will operate through a network of 25 Principal Recruitment Agencies (PRAs) and 250 Associate Recruitment Agencies (ARAs).
Bestinet Sdn Bhd, an IT company that operates the FWCMS on behalf of the Malaysian government, issued a memo on October 6, 2026, confirming the November 5 implementation date. The memo outlined that recruitment from Nepal would be conducted exclusively through the network of 275 agencies, comprising the 25 PRAs and their 250 affiliated ARAs.
Bestinet has set October 15, 2026, as the final date for biomedical registrations under the existing system. After this deadline, new biomedical registrations will not be permitted under the old arrangement, although the service will continue under the new system based on official guidelines. Medical centers and recruitment agencies have been instructed to complete all pending procedures for workers already in the recruitment process, including identification, biometric registration, health examinations, and re-examinations, by October 31, 2026. This is to ensure eligible workers can proceed with their Visa With Reference (VDR) applications.
Ahead of the new system’s launch, Bestinet has scheduled training on PRA system registration and account activation. An official link for PRA registration will be provided on November 4, 2026, after which system registration and account activation will commence. Bestinet clarified that its role under the new system would be limited to system operation, technical arrangements, technical support, and training, with the authority to approve agencies and make VDR decisions remaining with relevant government authorities.
Nepal’s Strong Objections
Nepal’s government, led by Prime Minister Balen Shah, has formally requested Malaysia to remove Nepali manpower companies from the FWCMS. Nepal argues that any action leading to a monopoly or undermining fair competition is unacceptable and insists that recruitment should adhere to the bilateral labor agreement between the two countries. The Department of Foreign Employment (DoFE), Nepal’s regulatory body for foreign employment, has initiated an investigation into the 25 PRAs listed in the FWCMS and has halted new pre-approvals for the 250 ARAs.
Approximately 400,000 Nepali workers are currently employed in Malaysia, according to data as of October 3, 2025.
Background to the Dispute
The current dispute echoes past conflicts over foreign worker recruitment systems that previously led to a nearly 19-month halt in Nepali workers going to Malaysia. Nepal and Malaysia signed a bilateral labor understanding (MOU) on October 29, 2018, aiming to establish a zero-cost employment system for Nepali workers.
Malaysia introduced the FWCMS to streamline the foreign worker recruitment process, combat illegal fees, middlemen, and fraud, and ensure worker welfare, security, health, and compliance. However, Nepal views Malaysia’s decision to list only 25 Nepali manpower companies as ‘Principal’ and 250 as ‘Associate’ agencies within the FWCMS as an attempt to create a syndicate, violating Nepali laws that mandate equal opportunities for all licensed manpower companies.
The Ministry of Human Resources, Malaysia, the Malaysian government ministry responsible for human resources, took full responsibility for the Foreign Worker Management One Stop Centre (OSC) from July 6, 2026. Since then, all foreign worker applications are required to be submitted through the FWCMS’s eQuota module.
Upcoming Developments and Unresolved Issues
In an effort to resolve the ongoing dispute, Prime Minister Balen Shah and Malaysian Prime Minister Anwar Ibrahim agreed on October 6, 2026, to hold ministerial-level discussions on the worker recruitment issue. These talks are expected to focus on making the recruitment process transparent, competitive, and free from exploitation.
Malaysian Prime Minister Anwar Ibrahim is also anticipated to announce an increase in the minimum monthly wage for workers through Budget 2027, which will be presented to parliament on October 9, 2026.
Despite these developments, several aspects remain unclear. The detailed official system guidelines for the new FWCMS are yet to be released. The final outcome of the Department of Foreign Employment’s investigation into the 25 Principal Recruitment Agencies and 250 Associate Recruitment Agencies is pending. The specific date for the PRA system registration and account activation training in October has not been disclosed. Furthermore, Malaysia’s formal response to Nepal’s diplomatic note regarding the removal of Nepali manpower companies from the FWCMS is awaited, and the final resolution of the PRA/ARA structure dispute through ministerial talks is yet to be determined.
