Nepal launches probe into recruitment agencies linked to Malaysia’s FWCMS

Kathmandu, September 13, 2026 — The government has launched an investigation into Nepali licensed recruitment agencies affiliated with Malaysia’s Foreign Workers Centralized Management System (FWCMS), with possible legal action if violations are established.

Following a directive from the Ministry of Youth, Labour and Employment and a ministerial decision taken on September 11, the Department of Foreign Employment has instructed 25 licensed recruitment agencies identified in the FWCMS as “principal worker recruitment agencies” to terminate their affiliation with the system.

The department has asked the 25 agencies to submit documentary evidence confirming their withdrawal from FWCMS and has prohibited them from forming new affiliations. It has also temporarily stopped processing new pre-approvals for Malaysia for 250 agencies listed as affiliated or associate agencies of the 25 principal firms.

The investigation will examine the transactions and criteria used by the 25 principal agencies, their previous involvement in recruiting Nepali workers for Malaysia and the procedures through which they brought other recruitment agencies into the system.

The department is also seeking explanations from the 250 affiliated and associate agencies about the grounds and procedures for their affiliation with FWCMS, as well as their relationship with the principal agencies.

The 250 agencies will remain barred from obtaining new pre-approvals for Malaysia until the investigation and review are completed. The government has clarified that the measure applies only to new pre-approvals and does not affect workers who have already completed the required foreign employment procedures and received labour approval.

Workers who have obtained labour approval will therefore be able to proceed with their departure process as usual.

The department has also warned recruitment agencies against participating in structures or activities that undermine fair competition in the foreign employment sector. Agencies involved in such arrangements have been instructed to end the affiliations immediately and avoid activities that could create group control or a monopoly over worker selection and foreign employment businesses.