Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal has officially rejected the 10-point labor recruitment standards recently proposed by the Malaysian government, stating that the criteria are unacceptable, impractical, and would create syndicate control in Nepal’s foreign employment sector. The Ministry of Labour, Employment and Social Security prepared a diplomatic communication which has been forwarded to Malaysia through Nepal’s Ministry of Foreign Affairs and the Nepali Embassy in Kuala Lumpur.
According to embassy officials, the document was sent last Friday; however, due to weekend public holidays in Malaysia, the embassy will formally submit the note via email and direct diplomatic engagement starting today. “We are sending the letter through official channels and also seeking in-person discussions with Malaysian authorities,” an embassy source confirmed.
Nepal argues that the proposed standards would restrict fair competition among Nepali manpower agencies, violate Nepal’s domestic labour laws, and contradict the principles of equal opportunity and transparency. The letter emphasizes that Nepal will operate strictly in accordance with its Constitution, national labor policies, the Nepal–Malaysia Bilateral Labour Agreement, and international labor commitments.
The diplomatic note also warns that enforcing the new standards may negatively impact the supply of Nepali skilled workers to Malaysia, which is currently one of Nepal’s largest labor destinations.
Background of the Dispute
On October 27, Malaysia introduced a 10-point mandatory selection framework for recruitment agencies from Nepal, India, Bangladesh, Pakistan, and Myanmar. The criteria include requirements such as:
Minimum five years of operating license
Record of at least 3,000 workers deployed over the last three years
Documented experience sending workers to at least three different countries
Valid certifications for training, recruitment, and evaluation
Government-issued Good Conduct Certification
Nepal maintains that these conditions would allow only a small number of large agencies to dominate the market, leading to institutionalized syndication.
Response from Nepal’s Recruitment Sector
The Nepal Association of Foreign Employment Agencies (NAFEA) and manpower businesses have strongly opposed the Malaysian proposal, warning that the model would hand market control to a few players and harm Nepal’s broader foreign employment ecosystem. They have threatened protests and suspension of worker supply if the criteria were enforced.
Labor Secretary Dr. Krishna Hari Pushkar received the sector’s official objection last week, which also labeled the Malaysian framework as an “attempt to monopolize manpower recruitment.”
Government Stance
Prime Minister Sushila Karki held discussions with the Finance Minister, Law Minister, Labor Ministry officials, and concerned stakeholders before the note was issued. The government concluded that the framework cannot be accepted or enforced under current circumstances.
Nepal reiterated that it remains committed to cooperative dialogue and is ready to work with Malaysia to ensure worker welfare, safety, and reliable recruitment, but only within mutually agreeable and lawful arrangements.
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