‘Explain why recruitment of Nepali workers restricted’ – Charles Santiago

Former Malaysian MP Charles Santiago has questioned Malaysia's decision to restrict the recruitment of Nepali workers to only 25 agencies. Santiago argued that this move was made without consulting Kathmandu, Nepal's capital, and was not announced to the Nepali government until the list was posted online. With around 400,000 Nepali workers currently residing in Malaysia, the previous system allowed employers to hire through agencies licensed by Nepal.

However, since last Friday, hiring has been limited to the 25 agencies listed on the Foreign Workers Centralised Management System (FWCMS) portal.

Santiago pointed out that Nepal was not consulted or informed about the change, and the decision has caused disruption in recruitment for Malaysian employers. He questioned the purpose of the Malaysia-Nepal labor memorandum of understanding (MoU) if major decisions can be made without discussion between both governments. Santiago also requested an explanation from the Human Resources Ministry (KESUMA) on how the 25 agencies were selected, including the criteria and eligibility requirements.

He specifically asked who made the decision and why Nepal was excluded from the process that directly impacts the recruitment of its citizens.

The situation has worsened after Nepal suspended all 25 agencies under the new arrangement, further complicating recruitment for Malaysian employers. Santiago warned that restricting recruitment to such a small number of agencies could lead to higher recruitment costs and put too much control in the hands of a few companies, ultimately burdening Nepali workers.

He also expressed concern that this decision has damaged trust between the two countries, which are key sources of foreign labor for Malaysia. Santiago asked how KESUMA's unilateral decision benefits Malaysia, suggesting that the outcome is not beneficial for either nation.