Himal Press 
KATHMANDU: The Malaysian government is preparing to review labor agreements signed with various countries, including Nepal.
Quoting Home Minister Saifuddin Nasution Ismail, Malaysian media have reported that the cabinet has approved a proposal to review labor agreements signed with 15 countries.
Malaysia sources workers from countries such as Thailand, Cambodia, Nepal, Myanmar, Laos, Vietnam, the Philippines, Pakistan, Sri Lanka, Bangladesh, Turkmenistan, Uzbekistan, Kazakhstan, India and Indonesia.
Although the labor agreement between Nepal and Malaysia needs to be reviewed every four years, it has not been revisited, even though five years have passed since the agreement was signed.
“We will revisit the agreements looking at various elements including fees, costs, contract conditions, health and so on,” Malaysian Home Minister Ismail told Reuters, adding that the government would allow the transfer of worker quotas across sectors.
The Malaysian Ministry of Human Resources recently held a discussion with the Embassy of Nepal in Kuala Lumpur on why approvals for Nepal labor and new entries have been halted.
According to the Malaysian Immigration Department’s 2023 annual report, workers from Nepal, Bangladesh, and Indonesia constitute 77% of Malaysia’s migrant workforce. Malaysia is facing a severe labor shortage after halting the hiring of foreign workers.
Meanwhile, the creation of a ‘cartel’ for foreign employment to Malaysia has put an additional financial burden on youths traveling to Malaysia for employment. Due to the cartel, youths bound for Malaysia need to pay around Rs 50,000 under different headings in Nepal itself.
The introduction of the online-based Foreign Workers Welfare Management Center has added a financial burden on workers. The agreement to bring the center into operation was signed in November, and its office opened in Malaysia two weeks ago. The center is imposing a $45 fee per worker. But it has been put on hold on the direction of Prime Minister Pushpa Kamal Dahal.
Rajiv Pokharel, the spokesperson for the Ministry of Labor, Employment, and Social Security, sees Malaysia’s decision to prepare a new policy for recruiting foreign workers as a positive development. “The government aims to ensure there is no additional financial burden on workers,” Pokharel said. “Nepal will adhere to its policy of sending workers at zero cost and will shut down all other cartels.”
Malaysian Human Resources Minister V Shiva Kumar has stated that Malaysia will limit the number of foreign workers to 2.4 million by 2025, as per its 12th Plan. Since the number of foreign workers in Malaysia is already as per the target set in the 12th Plan, the Malaysian government has indicated that it would give legal status to workers staying illegally by fulfilling necessary procedures.
Malaysian Economy Minister Rafizi Ramli has been advocating for reducing the number of workers below 2.4 million.
There are more than 500,000 Nepali workers. According to the Nepali embassy in Kuala Lumpur, approximately 150,000 of them are staying illegally.
