NEPAL-MALAYSIA RELATIONS

Bilateral Relations:

Nepal and Malaysia established diplomatic relations on January 1, 1960. Ever since the establishment of diplomatic relations, both countries have been enjoying friendly and cordial relations. Both countries believe in the policy of non-alignment; are committed to the ideals of the United Nations; and hold similar views on major international issues. The two countries have seen a frequent exchange of high-level visits. The relationship between the two countries predates the establishment of formal diplomatic ties. The Gurkha soldiers, as part of the British Army, fought side by side with the Malay forces to contain the local communist guerrilla insurgents’ activities during a state of emergency in Malaysia (1948-60). The relations between Nepal and Malaysia have witnessed steady growth covering a range of areas of cooperation.

Exchange of Visits

Exchange of visits at various levels has been instrumental in further consolidating the bilateral relations and charting out new course to update the relations corresponding to the call of time. Some high-level exchange of visits in recent years are:

1. Visit of Hon. Vice-Chair of the National Assembly Mrs. Bimala Ghimire, leading a thirteen-member delegation to Malaysia on 1-6 December 2024
2. Visit of Hon. Minister for Labour, Employment and Social Security Mr. Krishna Kumar Shrestha to Malaysia from 27 April to 2 May 2022 
3. Visit of Hon. Top Bahadur Magar, Chairperson of National Human Rights Commission of Nepal leading a six-member delegation to Malaysia from 28 March to 4 April 2022 at the invitation of the Malaysian Human Rights Commission to renew the MoU on the Rights of Migrant Workers and People residing in Both Countries
4. Visit of Hon. Foreign Minister Dr. Prakash Sharan Mahat to Malaysia on 19 March 2017
5. Visit of Hon. Minister for Labour and Employment Mr. Surya Man Gurung to Malaysia on 11-16 February 2017
6. Visit of Hon.e Datuk Seri Saifuddin Nasution bin Ismail, Minister of the Ministry of Home Affairs of Malaysia (KDN) to Nepal on 4 - 5 February 2023
7. Visit of Malaysian Minister for Human Resources H.E. M. Kulasegaran to Nepal on 28-29 October 2018. During his visit, Nepal and Malaysia signed a Memorandum of Understanding (MOU) between the Government of Nepal and the Government of Malaysia on the Recruitment, Employment and Repatriation of Workers 

Foreign Employment

Foreign employment has become a major component of Nepal-Malaysia relations. Malaysia has recognized Nepal as one of the source countries for foreign workers since January 2001. Nepal is now the second largest source country of foreign workers to Malaysia with more than four hundred thousand Nepali workers currently working in Malaysia. Most of them are working in manufacturing and service sectors. Nepali workers have significantly contributed to the economies of both Nepal and Malaysia.

Trade

Nepal exports vegetable products, handicrafts, garments and apparels to Malaysia while imports machineries and vehicles parts, vegetable oils, electrical equipment’s and electronic appliances, furniture and parts, plastic and other chemical products. The bilateral trade is heavily in favour of Malaysia. The trade figures between the two countries are shown in the following table:

Value in 000 Rs.

Source: www.tepc.gov.np

Nepal- Malaysia Chamber of Commerce and Industry was established in 2003. With a view to promoting bilateral trade and investment, Federation of Nepalese Chambers of Commerce & Industry (FNCCI) and the National Chamber of Commerce & Industry of Malaysia (NCCIM) signed an agreement during Nepal Investment Summit in 2024.

Tourism

The number of tourists visiting Nepal from Malaysia is significant. In the recent years, there is an increasing trend of visiting Malaysia by Nepali tourists. 

Source: Reports published by Department of Immigration

Foreign Direct Investment

Malaysia has also invested in 50 different industries, service sectors and other fields amounting to $1632.24 million which generates 1544 job opportunities. The investment is done in hotel industry, hotel with restaurant industry, data analytics, etc. Foreign direct investment details by Malaysia in Nepal for the last fiscal year stands as follows:

Value in Million

           Source: Industrial statistics 2079/80(2022/23)

Sectors like energy, manufacturing, agriculture, tourism, mines, education and health sectors can be the potential investment areas for Malaysian investors in Nepal.

Air Services

Air Service Agreement between Nepal and Malaysia was signed in 2007. Air Connectivity well-established between Nepal and Malaysia. Nepal Airlines and Himalaya Airlines of Nepal and three Malaysian Airlines, namely Air Asia, Malaysian Airlines and Malindo Air are operating direct flights between Kathmandu and Kuala Lumpur.

Technical Cooperation

Malaysia has been providing some scholarships to Nepal in different fields, including agriculture, electronics, education, administration, anti-corruption, environment management, computer programming, disaster risk management, trade, etc. under Malaysian Technical Cooperation Program (MTCP).

Agreements/MOUs

Nepal and Malaysia have signed some important agreements such as

1. MoU Nepal and Malaysia on the Recruitment, Employment and Repatriation of Workers signed on 29 October 2018. The MOU is in the process of revision/renewal after completion of its five-year validity.
2. MoU on Air Service Agreement between Nepal and Malaysia signed on 5 August 2003
3. Establishment of Bilateral Consultation Mechanism Between the Ministries of Foreign Affairs of Nepal and Malaysia through the Exchange of Notes.

South East Asia and the Pacific Division
Ministry of Foreign Affairs
Singha Durbar, Kathmandu
As of January 2025