New Malaysian Migrant Worker Rules Allegedly Spark Scandal In Nepal

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Malaysia’s recent move to tighten requirements over migrant labour supply for recruitment agencies has allegedly sparked a corruption scandal in Nepal.
Speaking on condition of anonymity, sources in Nepal told Malaysiakini that Malaysia’s introduction of the new “10 mandatory criteria” has caused panic among Nepalese agencies.
They explained how industry players now fear losing access to the Malaysian labour market, a key destination for many Nepalese workers. Nepal is also one of the main suppliers of migrant workers, especially security personnel, in Malaysia.
“As soon as the letter from the Malaysian government came out, several individuals in Nepal began offering ‘assistance’ to get approval.
ADS“They claimed to have direct links with certain parties in Malaysia. Many were desperate, and so they paid,” said a source, who declined to be named for fear of their safety.
According to the source, at least five agencies in Nepal paid between RM1 million and RM1.5 million to a syndicate that allegedly has “close ties” with individuals who can influence the approval of worker quotas for Malaysia.
Malaysiakini has identified the companies and has contacted them for clarification.
Last week, the Foreign Affairs Ministry set 10 mandatory criteria for foreign agencies to supply workers to Malaysia.
One of the criteria, which has been deemed highly controversial, stipulates that an agency wishing to send workers must have experience managing at least 3,000 workers in five years and successfully placing these workers in at least three countries.
On Oct 27, the ministry also sent letters to the embassies of source countries (countries eligible to send workers) and requested their respective governments to submit a list of agencies that can meet all the criteria by Nov 15.
Malaysiakini has viewed the letter in question.
Other stipulated conditions include having positive testimonials from at least five international employers, possessing a large permanent office (10,000 square feet) that has been operating for a minimum of three years, and having their own training centre.
A gathering held by the Nepal Association of Foreign Employment AgenciesFurther, at least two international associations have already criticised the new requirements, labelling them as unrealistic, unfair, and having the potential to revive “syndicates”.
Proceeds sent to India
Previously, the Bangladesh Association of International Recruiting Agencies (Baira) and the Nepal Association of Foreign Employment Agencies (Nafea) described the new criteria as “impossible” to meet.
Both associations also claimed the requirements were merely a ploy to control the market and sideline new agencies. They also alleged that certain individuals in Malaysia were the “masterminds” behind an attempt to revive the syndicate system.
ADSMeanwhile, another Nepali source also said a syndicate had already collected over RM6 million from several agencies that sought to ensure their names remain on the Malaysian government’s approved list.
“The proceeds from the collection have been sent to certain bank accounts in India,” the source added.
Malaysiakini is not disclosing the name of the agent collecting payments from India while waiting for their comment.
The source further explained how several agencies in Nepal are now facing immense pressure to comply with Malaysia’s stringent requirements while dealing with agents who tout their abilities to “manage” the process for a fee.
Demonstration in Nepal
When contacted by Malaysiakini, Nafea senior vice-president Sujith Kumar Shrestha confirmed the existence of a syndicate attempting to profit following the letter from the Malaysian government.
He also demanded an immediate investigation into these claims, including scrutinising the possibility of Malaysian parties colluding with the syndicate.
“This is no longer an administrative issue; this is an issue of cross-border corruption,” he said.
Separately, the organisation also held a demonstration yesterday, urging the Nepalese government to object to the Malaysian government’s conditions.
“Over 100 migrant worker agencies across the country (Nepal) had participated.
“Our goal is for ‘no syndicates’. Currently, workers in Nepal also have to fork out almost RM13,000 to come to Malaysia. If these new conditions are implemented, these payments will only increase further.
“If the Malaysian government still wants to implement this syndicate system, then the majority of labour recruitment companies and licence holders will be prepared to hand over their licences to the government,” Sujith added.
Previously, Malaysia’s Foreign Ministry said questions regarding the new criteria and migrant worker recruitment policy should be referred to the Human Resources Ministry. - Mkini

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