Malaysia employment dispute: Let’s understand in 6 questions and answers what is FWCMS and what should Nepal do?

KATHMANDU: Malaysia’s Foreign Workers Centralized Management System (FWCMS) is currently being debated from various angles. In some cases, the issue seems to be limited to professional competition between a few foreign employment agents, fees, or who gets the opportunity and who doesn’t.

The Nepal government should not view this issue as a matter of standing for or against any business group. If Malaysia’s new system reduces the financial burden on workers, makes the recruitment process transparent, and controls irregularities, then that can be viewed positively. But for that to happen, both the implementation of the system and the selection process under it must be fair.

But if we look at the real purpose of FWCMS, the state of the Malaysian labor market and its background, this issue is not limited to that. It also has to do with the interests of Nepali workers, transparency of the recruitment process, employment opportunities, and the national interest of Nepal.

Therefore, it is necessary to look at the purpose of FWCMS and the selection process of Nepali recruitment agencies under it separately. The purpose of a system may be appropriate, but questions may arise in its implementation, criteria and distribution of opportunities. Similarly, it is not appropriate to conclude that the original purpose of the system was wrong if questions arise in the selection process.

Why was FWCMS necessary?

Malaysia is one of the world’s major industrial and manufacturing hubs. The products produced by its large industries and factories reach international markets including the US and Europe. Therefore, the rights of foreign workers working in those industries, labor exploitation, minimum facilities, working environment, and even recruitment processes have become the subject of international scrutiny.

If an industry or factory experiences exploitation of foreign workers, illegal recruitment, or serious labor rights issues, the impact may not be limited to the company concerned. It may also affect the company’s reputation in the international market, its production, and the overall Malaysian economy.

It is against this backdrop that the need to bring the foreign worker recruitment process more systematic, transparent and under government supervision has been seen. It is important to systematically maintain details of which country the worker came from, who recruited him, how his medical procedure was completed, how he obtained his visa, how much money was transacted in the recruitment process and where the worker is working.

In addition, a centralized system can also be useful in controlling irregularities in the recruitment process, the role of illegal middlemen, and the exploitation of workers.

Therefore, it is not appropriate to understand FWCMS as a general online system or a structure created for the benefit of any single businessman. Because this is a structure entrusted by the Malaysian government. Its core concept seems to be focused on making foreign worker management digital and centralized, securing worker details, regulating the recruitment process, and coordinating medical and visa processes.

If Malaysia were to move towards an employer-pay model in the future, where employers bear the costs of recruitment, it could also contribute to reducing the financial burden on workers and the additional charges incurred in the name of recruitment. However, to achieve such benefits, the implementation of the system, fee structure, and regulation need to be effective.

Did the recruitment fee dispute start with FWCMS?

Looking at the situation before the selection of FWCMS and 25 Nepali manpower companies, there is a huge difference in recruitment fees between the Nepali and Bangladeshi markets.

At that time, Nepali manpower companies were paying around 1,000 Malaysian ringgit (RM 1,000) to the respective licensed recruitment companies in Malaysia. In comparison, Bangladeshi companies were found to be paying around 4,000 to 4,500 ringgit (RM 4,000-4,500).

Subsequently, as demand and competition for employment increased among Nepali manpower companies, the amount paid in the Nepali market gradually increased, reaching up to 10,000 ringgit (RM 10,000) in some cases.