Malaysia's employment crisis for Nepalis has reached a tipping point. So far, Malaysia has been the first choice destination for unskilled workers. As long as unskilled workers get jobs in Malaysia, they do not look for other alternative labor markets. There are specific reasons for this - first, the minimum wage is the same as that of local citizens.

The minimum wage usually increases every two years. Currently, this wage has reached 1,700 ringgit (61,000 Nepalese rupees). If we go back to the Gulf, the minimum wage is still around 800 to 1,000 riyals (36,000 Nepalese rupees).

The second reason is a comfortable workplace. Social security is guaranteed . Unlike in the Gulf, Malaysia does not have to endure the scorching heat of 45-50 degrees. The temperature does not drop to minus like in Europe. Work is available indoors. The climate is suitable like Nepal. There is no day without rain. Green forests are visible everywhere.

The third reason is the lifestyle. There are no restrictions for workers here. Most importantly, educational qualifications are not required to get a job. No specific language is required. Manpower between the ages of 20 and 45 is considered eligible if it is ‘medically fit’. When Malaysia sent a letter setting out 10 criteria for manpower companies sending workers, it caused an earthquake in the labor recruitment system.

Malaysia wrote a letter to five source countries including Nepal, saying, ‘Send a list of manpower that falls within the criteria we have sent. We will review it and select it. Those who do not meet the criteria will not be considered.’ This simply means that ‘just because a manpower company has a license (any manpower) cannot be sent to Malaysia.’ That is, even if the employer has access, the manpower requisition will not be approved. To obtain the requisition, it is mandatory to enter the Malaysian government system.

Nepal has been given a deadline of Kartik 29 to select the 10 criteria set by Malaysia and send the list. The 10 criteria include that the manpower company must have been licensed to send workers for five years, must have sent at least 3,000 workers abroad in a period of five years, must have sent workers to at least three countries in a period of five years, must have obtained a license from the relevant body for training, assessment, recruitment and worker deployment.

Similarly, it must have received a report on good conduct, must not have been involved in forced labor, human trafficking, labor law violations, extortion, embezzlement, or other economic crimes, the manpower company must have its own facilitated training and assessment center, five employer companies must have issued certificates regarding the good conduct of the concerned manpower company, must have an office area of ​​at least 10,000 square feet for the labor recruitment process and other work, and must provide necessary documents as proof of compliance with the standards sought by the destination country, including Malaysia.

Now the question arises whether Nepal can accept the criteria from Malaysia as 100% and send the list ? Can Malaysia unilaterally determine the criteria of manpower companies and send them to the source country ? Are the 1,200 active manpower companies in Nepal, which have been selected and licensed according to these criteria, ready to recruit workers ?

The umbrella organization of manpower professionals, Nepal Foreign Employment Professionals Association, and various sister organizations of manpower affiliated with political parties have already expressed their disagreement with the Malaysian criteria .

They have interpreted this as an attempt to ‘monopoly’ . This issue has become so complicated that the issue of meeting or not meeting the criteria set by Malaysia has become a matter of retribution among manpower professionals. A rift of trust has started to arise between small and big ones .

This issue does not seem to be resolved or overcome immediately. This has once again raised doubts about the loss or closure of the labor market. So, will the Malaysian labor market be as easy to access for Nepalis as before? Nepal has no choice but to lose such an important labor market. The responsibility to protect it has fallen on the shoulders of the Nepalese government. The best way forward for now is diplomatic dialogue with Malaysia.

The relationship between Nepal and Malaysia is entangled in labor migration. There is a formal mechanism between the two countries to untie the knots tied to labor issues - the Joint Technical Working Committee. This mechanism includes representatives from the Ministries of Labor, Foreign Affairs, Home Affairs, and Law of the two countries. When a difficult situation arises, the importance and activity of this committee increases. Now, meaningful activity of this mechanism seems necessary.

Which of the 10 criteria that Malaysia claims to ‘emphasize structured and decent labor migration’ reduce labor costs or are in the interest of workers? Which of the points are such as to establish a monopoly as claimed by the manpower companies?

It is necessary for the Ministry of Labor to discuss this with the main stakeholders (manpower, trade unions and civil society) before sitting at the diplomatic dialogue table with Malaysia. Because a meeting with the Finance Minister, Law Minister, Chief Secretary, Foreign Secretary and Labor Secretary, attended by Prime Minister Sushila Karki, has accepted Malaysia’s diplomatic letter as a

proposal only. It has not been considered final. This means that the door has now been opened for a substantive discussion on the 10 criteria. Malaysia is also in no position to reject this conclusion of Nepal. As Nepal presents itself as tough as it is, Malaysia has also presented itself as tough. While Nepal presents itself as soft, it is seen that Malaysia has also presented itself as soft. To understand this practice, one has to remember the phased Joint Technical Committee meetings held for the first time to conclude the labor agreement (held repeatedly from 2075 Baisakh to 2076 Shravan).

The labor agreement was indispensable for both countries. It adopted a transparent recruitment process. The costs and fees borne by the workers and the employers were clearly separated. Both countries considered it not only successful, but also a model for the source country. However, due to the inability to resolve the technical issues in its implementation in time, the agreement remained closed for another year after it was signed.

After adopting the policy of 'soft diplomacy', the labor market opened up. After that, not only did Malaysia's production system become viable, but also the rural economy became viable. This started air service . Remittance companies started to revive . Hotels in Kathmandu started to be bustling . Everything was back to normal .

Both sides suffered only losses during the 17-month closure. Nepali employment was lost. Malaysian employers were not getting productive manpower. This had an impact on the production chain. The demand letter (employment) of Malaysian multinational companies that was lost in those 17 months has not yet been returned to Nepalis .

That vacancy was filled by Bangladesh and Indonesia . At the same time, Bangladesh gained entry into the employment sector of Malaysia . Nepal is also a very important source country for Malaysia . Among the source countries it has chosen, Nepal has also been sending security guards to all areas. Security guards cannot be sent from other source countries. Out of 2 million foreign workers, 300,000 Nepalis are working.

Nepal has an opportunity to resolve the confusion caused by the Malaysian standard letter through diplomatic dialogue and strengthen itself further.

This has brought the pending labor agreement to the point of renewal and has also created an opportunity to openly discuss the burden of recruitment fees imposed on workers. Both countries have failed to effectively implement the labor agreement signed on Kartik 12, 2075 (which has been in the process of renewal for a year). This did not succeed even after all the necessary roads were built to go to Malaysia at zero cost. Neither Nepal has been able to control the manpower companies that charge arbitrary amounts, nor has Malaysia been able to take action against its employers or Malaysian manpower companies.

The commission that Nepalese manpower pays to Malaysian agents to obtain the demand letter has increased. That amount has reached 6,000 ringgit. After the commission increased, the cost of recruitment has increased further. The team deployed by the Foreign Employment Department to monitor only took unfair advantage in the name of approval. While the indiscriminate marketing was going on, the Nepal Foreign Employment Professionals Association could not bind its members within the code of conduct. Not only Nepal has been criticized for these wrong practices, Malaysia has also been criticized. The International Labor Organization (ILO)'s Decent Recruitment Report-2023 even classified Malaysia as a 'high-risk country for recruitment debt'.