The timeline for when Nepali migrant workers can resume travel to Malaysia remains unclear, despite Kuala Lumpur recently raising labor wages. Since May 31, 2024, Malaysia has suspended the recruitment of migrant workers from all countries, including Nepal, due to internal management issues. This suspension has led to a sharp decline in the number of workers traveling to Malaysia, which has traditionally been a popular destination for Nepali labor.
In the fiscal year 2022/23, 259,594 Nepali workers received approval to work in Malaysia, including 7,299 women. However, the current suspension has left many aspiring workers in limbo. The halt is largely attributed to issues such as high recruitment fees and inadequate salaries for many immigrant laborers.
Additionally, Malaysia has initiated a repatriation program for foreign workers residing illegally, which will continue until December 31, 2024. This situation leaves thousands of Nepali workers awaiting opportunities in their preferred destination.
Rajendra Bhandari, president of the Nepal Association of Foreign Employment Agencies (NAFEA), noted that while there is hope for a resumption of travel, it remains uncertain whether large numbers of workers will be able to return soon. Nepali workers in Malaysia are employed across five sectors, with the manufacturing sector employing the largest number, followed by services, agriculture, construction, and horticulture.
The Malaysian government, which employs approximately 335,000 Nepali workers, is now shifting its focus toward skilled labor. Although it is anticipated that Malaysia may start hiring foreign workers again around June or July 2025, no official announcements have been made.
The zero-cost labor agreement between Nepal and Malaysia, established five years ago, is set to expire on October 28. New agreements are expected to be established soon with Malaysia, as well as with Oman and Spain.
Under Malaysia’s repatriation program, individuals who entered without a visa or overstayed can return home by paying fines. The minimum wage in Malaysia has increased from 1,500 to 1,700 Malaysian Ringgit, effective February 2025, making it the highest minimum wage for Nepali workers in foreign employment.
Bishnu KC, chairman of Aakarshan International, stated that while the process for sending workers is currently halted, administrative tasks are ongoing, with expectations to reopen by the end of the year.
Currently, over 300,000 Nepali workers are in Malaysia, with 103,442 approvals issued in the last fiscal year.
