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Nepal has formally informed the Malaysian government that it cannot accept the new standards recently introduced for private recruitment agencies involved in sending Nepali workers to Malaysia. According to the Ministry of Labor, Employment and Social Security, a diplomatic note conveying Nepal’s position has been dispatched to the Malaysian government through the Ministry of Foreign Affairs on Tuesday. 

Ministry Spokesperson Joint Secretary Pitambar Ghimire said the government has told Malaysian authorities that the standards cannot be followed immediately and that labor-related issues can be resolved through bilateral talks and understanding.

Earlier, Malaysia’s Ministry of Foreign Affairs, through a diplomatic note to the Embassy of Nepal in Kuala Lumpur, informed that it had decided to rationalize the number of licensed private recruitment agencies allowed to handle the recruitment and placement of Nepali workers. The process, according to Malaysia, will be merit-based and overseen by its Ministry of Human Resources.

The note outlined 10 mandatory criteria agencies that recruitment agencies must meet to qualify. These include having at least five years of operating experience, successfully managing at least 3,000 foreign workers in the past five years, and deploying workers to at least three destination countries during that period. Agencies must also possess valid operating licenses, maintain a clean legal record, demonstrate ethical recruitment practices, and operate fully equipped training and assessment centers. Additionally, they are required to provide at least five written testimonials from international employers.

Malaysia has asked Nepal to submit a list of agencies meeting these requirements by Nov 15. It has sent similar diplomatic notes to India, Bangladesh, Pakistan, and Myanmar. Malaysian authorities have defended the move as an effort to ensure that only experienced and responsible firms are involved in the recruitment process.

However, Nepal’s recruiting agencies and their umbrella organization, the Nepal Association of Foreign Employment Agencies (NAFEA), have strongly objected to the plan, calling it discriminatory and monopolistic. Issuing a statement, NAFEA said it firmly rejects any attempt to impose syndicate-based control in the recruitment sector.

The Nepal Stock Exchange (NEPSE) gained 12. 17 points to close at 2, 607. 42 points on Wednesday. 

Similarly, the sensitive index surged by 1. 14 points to close at 453. 60 points.

A total of 9,218,810-unit shares of 312 companies were traded for Rs 4. 68 billion.

Meanwhile, Mabilung Energy Limited (MABEL) was the top gainer today, with its price surging by 9. 99 percent. 

Likewise, First Micro Finance Laghubitta Bittiya Sanstha Limited (FMDBL) was the top loser as its price fell by 7. 48 percent.

At the end of the day, total market capitalization stood at Rs 1. 48 trillion.

It has been two months since the Securities Board of Nepal (Sebon) last approved a public offering. 

A total of 99 companies are currently seeking Sebon’s approval to issue 1.37bn units of shares to mobilize Rs 80.64bn from the market even as Sebon continues to sit idly by, literally. Of these, 74 applications are for Initial Public Offerings (IPOs), while eight firms have proposed rights issues, four plan to issue debentures, and nine are mutual fund schemes.

Sebon last granted approval on Sept 3 to NMB Bank for its NMB Saral Bachat Fund E mutual fund scheme. Since then, the stock market regulator has not approved a single public issuance. Although the recent festive season, including Dashain, Tihar and Chhath, led to lengthy office closures, merchant bankers say the prolonged suspension cannot be justified merely by holidays. They allege that Sebon has not only withheld new approvals but also stopped accepting new applications since mid-September.

According to one investment banker, a mutual fund had submitted an application for approval on Sept 1, but no further filings have been registered since. “Sebon stopped registering applications altogether. Even rights and bonus share registrations are facing delays,” the banker said. The halt has disrupted expansion plans of several companies, particularly in the hydropower sector, that were preparing to raise capital through public offerings. Officials of Independent Power Producers’ Association of Nepal (IPPAN), the umbrella body of privately-owned hydropower projects, a few months ago alleged that Sebon officials had mobilized middlemen to collect kickbacks for IPO approvals.  

Meanwhile, Sebon’s own operations have been paralyzed for 42 days due to an ongoing employee strike. Sebon employees have been on a strike since mid-September against the finance ministry’s instruction for the reduction or elimination of various allowances, facilities and perks that they have legally enjoyed for the past several years. 

Interestingly, neither the Sebon nor the ministry has intervened to resolve the stalemate. Market analysts warn that the prolonged freeze is eroding investor confidence and blocking companies’ access to much-needed capital.

The price of gold has dropped by Rs 1, 100 per tola in the domestic market on Wednesday. 

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 237, 200 per tola today.  It was traded at Rs 238, 300 per tola on Tuesday. 

Similarly, the silver is being traded at Rs 2, 990 per tola.