Migrant workers leaving for Malaysia might have to pay higher visa processing fees. The Malaysian embassy is reportedly increasing the charge by nearly 80 percent.

The government and foreign employment agencies have said the embassy is outsourcing visa processing to three private firms by hiking the fee. While agents in Malaysia are under criticism for charging Rs 50,000-125,000 just for getting demands, the Malaysian embassy’s plan will be a severe blow to aspiring migrant workers willing to go to the country.

While the embassy has already appointed a firm named Malaysia VLN Nepal for visa processing, recruitment agencies, and government sources said it is preparing to appoint two more firms—FOSA and Malaysian IT firm Bestinet Sdn Bhd—for the job.

FOSA is expected to charge more than Rs 3,000 just for transporting passports between recruitment agencies and the embassy, while Bestinet Sdn Bhd is expected to charge some Rs 4,000 through a mandatory installation of software at medical centers performing health checkups.

The advent of new agents in visa processing would skyrocket the overall fee to more than Rs 11,000, up from the current Rs 6,500, Nepal Association of Foreign Employment Agencies (NAFEA) said. This hike follows an increase in the fee from Rs 700 to Rs 3,900, which took place after the embassy appointed Malaysia VLN Nepal.

NAFEA Chairman Bal Bahadur Tamang said the decision, if implemented, will add further to workers, who are already paying Rs 125,000-400,000 to work in Malaysia, depending on the nature of the job. NAFEA said Nepali recruitment agencies are also paying Rs 50,000-125,000 in commission to agents in Malaysia for demands. “The Malaysian embassy is imposing a cartel by introducing the agent system even in visa processing. This is not acceptable to us,” said Tamang.

NAFEA had staged a protest outside the embassy to express its dissatisfaction over the fee hike. It said it will now knock the doors of the Foreign Ministry and UN agencies if the Malaysian embassy does not roll back its decision to bring in agents.

“VLN Nepal has not taken any legal status from Nepal government and we are informed by Nepal Rastra Bank officials that it is awaiting the central bank’s nod to send millions acquired through visa processing,” said Tamang. He said the embassy is still taking nine days to issue visa despite the introduction of the private agents. The embassy issues visa in a single day upon paying an additional Rs 1,500.

Officials at the Malaysian embassy in Kathmandu were not available for comment. However, a spokesperson for the embassy had told The Star, a Malaysian English language daily, only the processing fee was increased instead of the initial visa fee. “The review of the fee doesn’t fall under Wis-ma Putra (Foreign Ministry) and it’s decided by the Home Ministry,” the report quoted the official as saying.

Sources at the Labour Ministry said the Malaysian government is “promoting the blatant exploitation of migrant workers instead of addressing procedural loopholes” in its system. They said the agent-centric recruitment process has forced workers to pay an unjustifiable amount for dirty and demeaning jobs.

“We were expecting the Malaysian government to end the monopoly of local agents who are charging unfairly for job demands in plantation and agricultural sectors. But the ongoing developments show it is seeking its direct involvement in every aspect of the recruitment process by bringing in agents. They might seek their stake in recruitment and pre-departure orientation in coming days,” said a senior ministry official. The officials said they are looking into the legal status of VLN Nepal.

Published on: 29 December 2013 | The Kathmandu Post