The Department of Foreign Employment has launched an investigation and regulatory action against licensed Nepali recruitment firms affiliated with Malaysia’s Foreign Worker Centralized Management System (FWCMS). Following a directive from the Ministry of Labour, Employment and Social Security, authorities have directed 25 primary recruitment agencies listed under the system to terminate their participation immediately and provide proof of exit.
In tandem, the government has temporarily frozen the processing of new foreign employment pre-approvals for Malaysia for 250 additional recruitment agencies categorized as “associate” or “support” entities under the initial 25 principal firms.Officials noted that this multi-tiered hierarchy violates Nepal’s Foreign Employment Act and Constitution by creating a potential monopoly and restricting fair, open market competition among licensed operators.
The Department is actively reviewing selection criteria, historical business transactions, and contractual relationships of all involved agencies to determine how they entered the Malaysian system. Department officials confirmed that the suspension applies strictly to new pre-approvals for Malaysia; workers who have already completed procedural requirements and received valid labor permits will not experience travel disruptions. Legal and diplomatic efforts remain underway with Malaysian authorities to establish a transparent recruitment framework aligned with existing bilateral labor agreements.