Anil Adhikari | Kuala Lumpur | A total of 1,200 Nepali workers are set to head to Malaysia’s FELDA Plantation. The Nepali Embassy in Malaysia has approved the demand letter for the employment of 1,200 workers at FELDA Plantation and an additional 580 workers for other plantations. This marks a partial reopening of employment opportunities in Malaysia. The embassy continues to certify additional demand letters for Malaysian jobs.
However, the process remains marred by middlemen’s influence, unhealthy competition among some manpower agencies in Nepal, and corruption in Nepal’s government machinery. Despite the “zero cost” policy for workers, Nepali workers are being forced to pay exorbitant fees. Allegations suggest that the Ministry of Labor has turned a blind eye to these issues, even colluding with those exploiting workers financially.
Reports indicate that manpower agencies have invested at least 190 million rupees illegally to bring workers to FELDA Plantation. FELDA has offered a commission of 2,912 Malaysian Ringgit (approximately 90,000 Nepali Rupees) per worker to the manpower agencies. However, instead of directly reaching Nepali manpower agencies, these opportunities are controlled by intermediaries in Malaysia. Nepali agencies are reportedly paying as much as 4,700 to 7,000 Ringgit per worker to secure the demand through informal channels, incurring a cost of at least 155,000 rupees per worker in commissions.
Workers are now facing significant financial burdens due to rising costs, including airfare and processing fees. For instance:
Airfare: 60,000 to 85,000 Nepali Rupees per worker.
Medical, Visa, Insurance, and Welfare Fund Fees: Up to 25,000 Nepali Rupees.
Biometric Registration Fees: Additional costs due to syndication in medical services, with 9,800 rupees being charged per worker.
Agent Fees: Ranging from 10,000 to as much as 50,000 rupees in some cases.
These combined costs can exceed 400,000 Nepali Rupees per worker, contradicting the zero-cost employment policy.
The demand letters from employers often do not reach Nepali manpower agencies directly. Instead, intermediaries in Malaysia manipulate the process, inflating costs and selling demand letters at high prices. Allegedly, this malpractice is supported by collusion among high-ranking officials at both Malaysian companies and Nepali government institutions.
In 2018, the Nepali government temporarily suspended labor approvals for Malaysia due to similar exploitative practices. Although a “free visa, free ticket” policy was introduced nine years ago, the lack of effective implementation has allowed these exploitations to continue unchecked. Even proposals from manpower agencies to cap recruitment fees at one month’s salary have been ignored by the government.
The labor ministry’s inability to enforce reforms has fueled accusations of corruption and collusion with exploitative agencies. Workers continue to suffer financial exploitation despite policies intended to protect them. The situation demands urgent government action to eliminate intermediaries and enforce transparent, fair practices in the foreign employment sector.