Nepal and Malaysia signed a labour agreement (MoU) in 2018, with a provision to renew it every four years. Six years later, the agreement has yet to be renewed.
According to Nepali officials, Nepal has repeatedly written to Malaysia requesting renewal of the agreement, but no response has been received so far. The agreement was signed by then Minister for Labour, Employment and Social Security Gokarna Bista and Malaysia’s then Minister for Human Resources Kula Segaran.
An official from the Ministry of Labour, Employment and Social Security said Nepal sent two letters seeking renewal, but both went unanswered. “We have sent letters several times. There has been no reply, and we are still waiting. Perhaps the process is ongoing on their side,” the official said.
According to ministry spokesperson Pitambar Ghimire, the correspondence was done through diplomatic channels.
While delaying renewal, Malaysia recently issued a 10-point standard guideline for manpower companies in five labour-sending countries, including Nepal. The guideline set conditions Nepali recruitment agencies must meet to send workers to Malaysia. However, Nepal rejected it outright, sending a diplomatic note stating it could not be implemented.
Officials say Malaysia’s hesitation to renew the labour agreement is linked to several factors. One is the decline in job demand in Malaysia itself. Another is the growing influence of syndicates trying to monopolise recruitment through limited companies.
About 18 months ago, Malaysia proposed renewing the deal under the same model as its agreement with Bangladesh. But then Minister for Labour Sharat Singh Bhandari rejected the idea, stating Nepal would not sign any agreement that created syndicates among manpower agencies.
“The government treats all businesses equally, large or small. We cannot sign an agreement that promotes syndicates,” said a ministry official. “The agreement must also promote ethical migration, which was not ensured under that proposal.”
Some Nepali and Malaysian recruitment agents had pressured Minister Bhandari to follow the Bangladeshi model, which restricts worker deployment to a few selected companies. Bhandari, however, maintained that the manpower sector needed regulation, not syndication.
Malaysia has long recruited Bangladeshi workers through a few licensed manpower companies. A Bangladeshi businessperson, Aminul Islam Abdul Noor (Amin), residing in Malaysia, reportedly played a key role in establishing the syndicate system. His company, Bestinet, also helped draft the 10-point guideline that was circulated to Nepal, India, Bangladesh, Pakistan, and Myanmar.