Monopolies and syndicates under various names are evident in countries including Malaysia, Japan, South Korea, Israel, Saudi Arabia, and Qatar.
The Nepal government has responded to Malaysia’s 10-point criteria for Nepali manpower entrepreneurs, saying it cannot be implemented on legal grounds.
Since Malaysia’s criteria only allow limited entrepreneurs to send workers, it is expected that 80 percent of manpower entrepreneurs will be affected.
Labor experts have said that monopolies and syndicates in the foreign employment sector have affected workers and transparency and that a digital system is needed to solve the problem.
Recently, Malaysia sent a 10-point standard for Nepali manpower entrepreneurs. Malaysia also sent a diplomatic note asking for a list of manpower entrepreneurs who meet those standards.
However, after widespread opposition to it, the Nepalese government also responded through a diplomatic note that Malaysia’s 10-point standard could not be implemented.
Nepal’s response was that the existing problems in the foreign employment sector could be resolved through talks and discussions, clarifying that the standard could not be implemented even on legal grounds, including the Constitution of Nepal and the Foreign Employment Act. The Malaysian government has not yet given any further response on the matter.
If the 10-point standard put forward by Malaysia is implemented, only a limited number of manpower entrepreneurs will be able to send workers to Malaysia.
Out of the 80 percent of the manpower entrepreneurs sending workers to Malaysia, only about 50 were able to meet the standard. Apart from them, the entrepreneurs would have to close down or find another option.
Not only that, new entrepreneurs would not be able to enter the market at all. There was widespread opposition to the Malaysian government’s intrusion into Nepal’s good governance in the name of management and regulation.
Malaysia already has a limited syndicate of health professionals. Only 36 health professionals who have undergone health examinations are allowed to work in Malaysia.
Also read: Syndicate game in Malaysian employment: Who is the main planner?
This incident in Malaysia is not new. The trend of forming ‘monopolies’ and ‘syndicates’ has been growing for years in every popular destination for foreign employment, which ultimately affects the workers.
The outgoing president of the Nepal Foreign Employment Professionals Association, Rajendra Bhandari, says that many types of syndicates are running in various countries in areas related to employment, such as medical, visa centers, and language training.
He says that a medical syndicate is running in Malaysia through a person named Amin and his organization in the name of the Federation of Health Professionals. However, Federation President Kailash Khadka has been opposing this issue. Khadka claimed that they have been conducting health examinations according to the standards set by the government and that they are not a syndicate.
Bhandari says that some visa centers and medical systems have been ‘authorized’ by the Nepal government itself and that businessmen have not been able to oppose it. He says that the problem has increased when proposals coming through diplomatic notes are easily accepted without understanding and analyzing them.
There are signs of monopoly and syndicates under various names in countries including Malaysia, Japan, South Korea, Israel, Saudi Arabia, and Qatar.
Currently, only 36 health institutions are recognized to conduct health examinations of Nepali workers in Malaysia. Health examination reports obtained from other than them are not valid. In the open market of the 21st century, there is a monopoly in health examinations.
Similarly, in Japan, a limited number of businessmen have been given the right to send technical interns. This is currently in the process of being revoked.
Similarly, Nepali workers have been sent to South Korea through EPS. In this, contrary to the open market policy, the government itself has been sending workers through EPS.
Similarly, in Israel, the government has been sending workers through ‘G2G’ (government-to-government). Workers have been sent to the caregiver sector through G2G. Israel says it does not hire workers through manpower professionals but hires workers directly through the government.
In Israel and Korea, workers are sent with the direct involvement of the government. Due to which they are protected from being cheated and also have to pay expensive fees. However, apart from that, monopolies and complications are being created for workers in various names in the Gulf countries.
In Qatar, Saudi Arabia, the UAE, etc., syndicates have not been directly declared. However, it has been made very easy for manpower with large ‘nexus,’ broker networks, and political access. Due to which both ordinary companies and workers are being pushed to the ‘second level.’
Kunchadorje Dimdong, secretary of the Foreign Employment Entrepreneurs Association, said that the association is working to eliminate the sector that looks like syndicates. He said that it is the association’s job to dismantle the system that moves forward with the intention of causing suffering to entrepreneurs and workers under various names.
Syndicates are taking root: Labor expert
Labor expert Dr. According to Mina Poudel, the foreign employment syndicate is deepening for three main reasons. These include the direct influence of manpower on policy-making, the shrinking labor market after Corona, and the rigidity of immigration policies in destination countries.
“As political and policy-level corruption increases, manpower entrepreneurs have started to exert influence in policy-making,” Poudel said. “Manpower-friendly policies and rules will be made, rules will be written in their favor, this has institutionalized the syndicate, and a very biased system is being implemented towards workers,” she said.
Also read: Nepal sends diplomatic note, calling Malaysia’s 10-point criteria invalid
She says that the international labor market has become tougher and more competitive after COVID-19. “The market has shrunk, opportunities have become limited, and after that, only ‘powerful’ groups have started capturing the market,” she said.
He says that after immigration became stricter in countries like the US, UK, Japan, and Korea, problems like irregular routes, brokerage, and fake documents have made the syndicate even stronger.
He says that after the rules were tightened, powerful nexus would operate more, and companies that tried to work weakly and ethically would be pushed back.
This would result in only the workers suffering, and foreign workers would be left behind.