Malaysia limits Nepali recruiters, sparking diplomatic clash that threatens workers' jobs

Malaysia's Human Resources Ministry recently authorized a shortlist of 25 Nepali recruitment agencies as "principal" firms, each permitted to partner with up to ten affiliate agencies under the Foreign Worker Centralised Management System. Kathmandu argues the arrangement limits competition and excludes most licensed Nepali recruiters, and the Nepal Ministry of Youth, Labour and Social Security has asked Malaysia to keep the previous recruitment framework while probing the chosen agencies.

The Nepali embassy in Kuala Lumpur has halted certification of demand letters from the selected firms, stopping new placements beyond quotas issued before August 22. Labour and Employment Minister Ramji Yadav and acting ambassador Mohammad Firdaus Azam have called for immediate high-level diplomatic talks and activation of the 2018 labour agreement's Joint Technical Committee. Experts warn that a breakdown could push Nepali workers toward rival source countries as Malaysia remains a major destination for about 400,000 migrants.