KATHMANDU, Sept 13: The government has launched an investigation and possible action against Nepali licensed recruitment agencies affiliated with Malaysia’s Foreign Workers Centralized Management System (FWCMS).
Following a directive from the Ministry of Youth, Labour and Employment and a ministerial decision on September 11, the Department of Foreign Employment has instructed 25 licensed agencies listed in the FWCMS as “principal worker recruitment agencies” not to continue their affiliation with the system.
The department has asked the 25 agencies to provide factual evidence confirming that they have withdrawn from the system and has barred them from establishing new affiliations. It has also temporarily suspended the processing of new pre-approvals for Malaysia for 250 agencies listed as affiliated or associate agencies of the 25 principal firms.
The department said it is investigating the transactions and selection criteria of the 25 principal agencies, their past involvement in recruiting workers for Malaysia and the process they used to affiliate other agencies.
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The department is also seeking explanations from the 250 affiliated or associate agencies regarding the basis and process of their affiliation with FWCMS and their relationship with the principal agencies.
The 250 agencies will not be allowed to obtain new pre-approvals for Malaysia until the investigation and review are completed. The ministry clarified that the suspension applies only to new pre-approvals for Malaysia.
The action will not affect workers who have already completed all procedures for foreign employment and obtained labour approval. Their departure process will continue as usual.
The department has directed recruitment agencies not to participate in any structure or activity that restricts fair competition. Agencies maintaining such affiliations have been told to terminate them immediately and refrain from any activity that creates group control or a monopoly over worker selection and foreign employment businesses.
The department said compliance with the directive issued under Section 37 of the Foreign Employment Act, 2007, is mandatory. Any violation of the directive or prevailing law could result in action under Section 54 of the Act and other applicable laws, including cancellation of recruitment licences.
The government said it would ensure equal opportunities for all licensed agencies by maintaining transparency and fair competition in foreign employment. Legal action will be taken if the investigation confirms illegal involvement, unlawful financial transactions or activities aimed at restricting competition.
The ministry said administrative and diplomatic efforts are continuing to resolve labour migration issues with Malaysia through government-to-government dialogue. Nepal is also seeking arrangements consistent with Nepali law and the labour agreement between the two countries.
The government said it remains committed to making the process of sending Nepali workers to Malaysia transparent, organised, competitive and uninterrupted while ensuring safe, dignified and fair foreign employment.
