Malaysia has informed Nepal that it will only recruit Nepali migrant workers through its Foreign Worker Centralised Management System (FWCMS), rejecting Nepal’s diplomatic request to allow a wider range of recruitment agencies.
Nepal had sent a diplomatic note arguing that the system, which limits recruitment to a select group of agencies, is unacceptable. Malaysia responded by stating that the new system aims to protect workers’ interests and streamline the recruitment process.
The dispute centers on Malaysia’s plan to implement a system on November 5, 2026, that will channel all Nepali worker recruitment through 25 Principal Recruitment Agencies (PRAs) and 250 Associate Recruitment Agencies (ARAs) listed under FWCMS. Nepal has consistently rejected this structure, citing concerns that it violates its laws, constitution, and bilateral labor agreements.
Nepal’s objections and diplomatic efforts
Nepal’s government has argued that the limited number of agencies creates a syndicate and intermediary system, which it views as exploitative. Prime Minister Balen Shah discussed the issue with Malaysian Prime Minister Anwar Ibrahim on October 6, urging an end to the syndicate and intermediary practices in Nepali worker recruitment.
Prime Minister Shah emphasized that Nepal would not accept a system that places worker recruitment under the control of a limited number of companies. He also requested direct talks between the labor ministers of both countries to ensure a dignified, transparent, and exploitation-free labor relationship between Nepal and Malaysia.
In response, Prime Minister Ibrahim stated his opposition to syndicates and intermediaries and pledged to instruct his labor minister to coordinate with the Nepali counterpart to find a solution. However, despite the prime ministerial dialogue, Malaysia’s Ministry of Human Resources has not altered its stance on the new system.
Timeline and next steps
Bestinet Sdn Bhd, the company operating Malaysia’s foreign worker recruitment system, issued a memo on October 6, confirming that the new arrangement for Nepal will be effective from November 5, 2026. This memo, based on a letter from Malaysia’s Ministry of Human Resources, was sent to medical centers and manpower agencies.
Previously, Malaysia implemented a new foreign worker recruitment system on August 22, requiring employers to recruit foreign workers only through FWCMS-listed agencies. Initially, only 25 Nepali manpower companies were listed as main recruitment agencies. Following protests in Nepal, Malaysia added 250 more companies as associate agencies, bringing the total to 275. However, Nepal has not accepted this structure.
Nepal has initiated investigations into the 275 listed manpower companies and has halted new pre-approval processes related to Malaysia until the dispute is resolved. The Ministry of Labor and the Ministry of Foreign Affairs are preparing to discuss how to proceed, with Nepal maintaining its position that all licensed manpower companies should have equal opportunities, rather than closing off employment in Malaysia.
Uncertainty looms for Nepali workers
As the November 5 deadline approaches, uncertainty remains regarding whether the dispute will be resolved or if the new worker recruitment process will be further impacted. The detailed breakdown of the 25 Principal Recruitment Agencies (PRAs) and 250 Associate Recruitment Agencies (ARAs), specific provisions in the bilateral labor agreement regarding limited recruitment agencies, and the exact impact of the new system on Nepali workers are still unclear.
