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ECONOMY, Republica Watch

Malaysia sets stringent criteria on foreign employment for Nepali manpower agencies

The Malaysian government has fixed criteria for Nepali manpower companies that have been engaged to supply workers from Nepal to various companies in Malaysia. 
By REPUBLICA

KATHMANDU, October 30: The Malaysian government has fixed criteria for Nepali manpower companies that have been engaged to supply workers from Nepal to various companies in Malaysia. 



Sending an official letter to the Government of Nepal (GoN) on Monday, the Malaysian government has said that only those manpower companies that meet the set standards will be permitted to work in the segment. “It will significantly contribute to strengthening constructive and ethical labor migration practices between the two nations,” reads the letter sent by the Ministry of Foreign Affairs of Malaysia to the Embassy of Nepal in Kuala Lumpur.


“This rationalization will be implemented through an objective and merit-based vetting process administered by the Ministry of Human Resources of Malaysia, in accordance with 10 mandatory criteria,” quotes the letter issued by the Malaysian government.


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The Malaysian authorities have requested the GoN to submit a list of licensed private recruitment agencies that meet the given criteria for review and vetting purposes. The South East nation has also set the deadline of November 15, 2025 for the GoN to provide the information.


In the standard maintained by the Malaysian government, Nepali manpower companies must have a minimum five-year operating licences. Similarly, the company concerned must have a track record of managing at least 3,000 workers in at least three different receiving countries in the past five years.


Likewise, the concerned company must produce good testimonials from at least five employers from the country recruiting the foreign workers. A permanent operating office for at least three years with a minimum area of 10,000 square feet and owner of a full-facilitated training and assessment center with its accommodation, technical training and induction modules, among others are the criteria set for the manpower agencies working for Malaysia bound migrant workers.  


Malaysia has been one of the attractive destinations for the Nepali citizens who look for pursuing foreign employment in the country. However, many of them suffer various types of exploitation in reality when migrating to and working in the country.


High recruitment costs and related debt bondage, false terms of employment, and dangerous, dirty and demeaning jobs, are among the factors posing risk to the Malaysia-bound Nepali workers. Similarly, the issues of fake employers acting as outsourcing agents are found treating the workers poorly, leaving them at risk of arrest, extortion and deportation. 


According to the records with Nepal Rastra Bank, a total of 5,748 Nepali workers went to Malaysia for employment during mid-July and mid-September of this year. In the fiscal year 2024/25, the country recruited 10,219 Nepalis in jobs, a heavy decline from 81,382 workers in the previous fiscal year.

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