Kathmandu, November 10
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.
Nepali officials claim that pressures were mounting to allow only a limited number of manpower companies to send workers to Malaysia through Bestinet’s system. When the Ministry of Labour proposed renewing the 2018 agreement without changes, Malaysia never responded.
“Instead of showing interest in renewal, they introduced syndicate-friendly guidelines,” the official said. “Nepal needs fair regulation of manpower agencies, but limiting the number of companies is equivalent to creating a monopoly, which could cause further problems.”
Officials maintain that the 2018 labour agreement remains one of the best frameworks Nepal has ever signed in the labour sector. The ministry has proposed renewing it as it is, without modification. However, manpower entrepreneurs allege that Malaysia’s delay is influenced by groups advocating for syndicate control.
Key provisions of the 2018 labour agreement
Signed on October 29, 2018, the MoU contains 16 main clauses and three sub-clauses addressing issues such as worker welfare, safety, and rights.
The agreement ensures that:
- All pre-departure and post-arrival costs are borne by the employer.
- Workers’ salaries are deposited into their bank accounts seven times a month.
- Workers can take emergency leave and return home when necessary.
- Nepali workers receive the same rights and benefits as Malaysian workers.
Then Minister Gokarna Bista had introduced the “Free Visa, Free Ticket” provision, meaning Nepali workers could go to Malaysia at zero cost, with employers covering all recruitment expenses. However, the implementation of this provision remains questionable.
The agreement also emphasises free visa and ticket, employment contracts, insurance, health checkups, service fees, job security, housing, basic facilities, and protection of workers’ dignity and rights.
“Rewriting the agreement could invite disputes,” said the ministry official. “Given the ongoing attempts to revive syndicates, we proposed renewing the 2018 deal unchanged, as it is still the most effective one.”
