Nepal has stepped up efforts to resolve a dispute with Malaysia over the selection of recruitment agencies, pressing Kuala Lumpur to set a date for a meeting of the two countries’ joint technical committee on labour matters.

The government wants the committee to address the dispute through a formal bilateral mechanism and prevent the recruitment of Nepali workers for Malaysia from being disrupted.

“Malaysia is an important destination for Nepali workers. Nepal disagrees with the way recruitment agencies have been selected. There is a formal mechanism between the two countries to resolve such issues, and we are working to arrange a meeting of that mechanism as soon as possible,” Mira Acharya, spokesperson for the Ministry of Labour, Employment and Social Security, told the Post.

Malaysia last month listed a limited number of recruitment agencies from 10 source countries, including Nepal, on its Foreign Worker Centralised Management System (FWCMS).

For Nepal, 25 recruitment agencies were listed as “principal” agencies, with another 250 designated as associate or supporting agencies.

The Nepali government has objected to the selection and is investigating the agencies listed under the new system.

Minister for Labour, Employment and Social Security Ramji Yadav on Tuesday asked Malaysia’s Chargé d’Affaires to Nepal, Mohammad Firdous Azam, to help coordinate a meeting of the joint technical committee and seek an early resolution to the dispute. It was the second diplomatic-level meeting between Yadav and Azam on the issue.

During Tuesday’s meeting, Yadav also asked for the evaluation system and criteria used to select the recruitment agencies to be formally provided to Nepal.

“We want to understand what criteria were used and what process was followed to select the Nepali recruitment agencies,” Acharya said. “Our concern is that when one country implements its policy, it should also take into account the legal framework of the other country.”

The labour ministry says it is seeking equal opportunity, transparency and fair competition among all licensed recruitment agencies.

The ministry has also sent a diplomatic note to Malaysia through the Ministry of Foreign Affairs, with an early meeting of the joint technical committee among its main requests.

Nepal’s embassy in Kuala Lumpur has separately been seeking a positive response from the Malaysian government on holding talks between the two sides.

“We are working to resolve the issues in labour matters through mutual dialogue,” said Lok Bahadur Poudel Chhetri, spokesperson for the foreign ministry. “We expect a positive response.”

Nepal is also seeking support from international organisations to help resolve the dispute.

On Tuesday, the International Labour Organization’s country head in Nepal, Numan Ozkan, met Azam for discussions on labour migration from Nepal to Malaysia and other areas of common interest.

“The meeting provided an opportunity for a constructive exchange of views on labour migration from Nepal to Malaysia and other issues of common interest,” the ILO said. “The importance of fair recruitment, decent work, safe and regular migration, and the protection of migrant workers’ rights and welfare was particularly highlighted.”

The Nepal Association of Foreign Employment Agencies has urged the government to scrap the restricted system and allow all licensed recruitment agencies to participate.

“The association does not support any system that creates a monopoly,” said its chairman, Dik Bahadur Khatri. “There must be participation, transparency and equal opportunity for all recruitment agencies.”

Malaysia’s Ministry of Human Resources has said the new model was introduced to make the recruitment of foreign workers more effective and transparent while protecting the interests of employers, workers and the country.

“Applications for quotas for foreign workers will now have to be submitted through the new application system,” the ministry said in a statement.

Nepal’s Department of Foreign Employment, however, has stopped granting prior approval for the verification of demand letters submitted through recruitment agencies selected by Malaysia since September 22.

For now, recruitment is proceeding only under quotas issued by Malaysia before September 22. The recruitment of workers in Nepal under the new system has not begun.

The association of recruitment agencies has called for demand letters brought through the selected agencies to remain on hold until all licensed agencies are allowed to compete on an equal footing.

Around 400,000 Nepalis are currently working in Malaysia.

Agencies asked to explain selection

The Department of Foreign Employment has given seven days to 250 recruitment agencies selected by Malaysia to explain how they were chosen for the FWCMS.

The department has asked the agencies to explain why and for what purpose they were listed on Malaysia’s system, what process was followed, what selection criteria were used and what methods were applied in the evaluation.

It has also asked whether the agencies needed recommendations or approval from any authority to be listed, whether the arrangement limits competition among Nepal’s recruitment agencies, and whether any illegal financial activity was involved or the process violated Nepal’s Foreign Employment Act 2007, Foreign Employment Rules 2008 or other prevailing laws.

The department had earlier sought similar explanations from the 25 recruitment agencies designated as principal agencies.