Nepal established diplomatic relations with Malaysia in 1960. Malaysia, which has been Nepal’s one of the major trading partners, recognized Nepal as a source country for foreign workers in 2001. Khabarhub recently caught up Mr. Ahmad Phadil Ismail, Charge d’ affairs a.i., at the Malaysian Embassy in Nepal and talked on a range of issues, including Malaysian investment in Nepal. Excerpts:

It’s been almost 60 years of Nepal-Malaysia bilateral relations. How do you access the current state of affairs?
Relations between Nepal and Malaysia has always remained smooth. It seems that we are focusing on only one sector that is labor. It is high time that we expanded other areas as well. In fact, we have been trying to engage in other terms such as trade, investment, and tourism.
Unfortunately, at the moment the situation has been stagnant for the last three years. It’s been a challenge for us either to encourage the labor issue or run away from it. Apart from labor, we have one big investment in Nepal through the acquisition of NCell through Axiata Company, which is a telecommunications enterprise, which, however, got into complication in recent times.

How optimistic are you about resolving the confusion concerning Axiata?
Let’s hope that this issue will not jeopardize the investment. The recent involvement of investment with regards to Axiata and Ncell to pay some money is their responsibility. But having been a company from Malaysia, where we have Asian values, we normally follow the rules. But I will leave it Axiata to comment on its part.
I very much believe Axiata is still discussing and looking at the legal aspects. Let’s hope that the company and the government could work together to resolve the issue.

What other areas would Malaysia consider it worth to make investments in Nepal?
We pursued a few projects in the past such as the second international airport and fast track. We have a consortium of companies willing to develop the projects. Unfortunately, the discussions did not progress as expected. We have the expertise in terms of infrastructure development. We thought that it would have been a good opportunity for us to work and develop infrastructure here in Nepal.

Unfortunately, it did not go well since the government here did not exhibit the interest. Frankly speaking, we are also interested in hydropower, which, too, did not go well due to certain reasons. But we still look at Nepal as a potential market that will benefit both the sides.

Despite your interest in investment here, what is hindering the process?
Earlier, it was political instability. We had several rounds of discussions with the concerned ministers but the frequent change in the governments hindered the process. In fact, it was difficult for us to explain the same issue to different ministers. Another important issue is that Malaysia considered Nepal as a resource country for labor. This, as I said earlier, has been caught in a quagmire.

Talking about investment, what is your impression on the recently-concluded Nepal Investment Summit?
The Summit was impressive in terms of the setup. For us, however, it is a wait and see situation since it is difficult for us to lay out all projects available in Malaysia. Whether or not those projects are feasible here, the problem here is with the implementation part. Signing documents is one part, and its implementation is a different part.
I, however, hope that some projects can be implemented if Nepal moved forward with open-mindedness. We believe that when other countries have taken a leap forward in a short span of time, Nepal should not lag behind.

What hurdles do Malaysian investors face in Nepal?
So far as the information that we have received, getting approval for investment is very difficult. A few Malaysian companies, which came here for investment in hydropower, said they had to go several layers of formalities for getting approval for a project. Moreover, the policy is not very clear in terms of setting a business here.
Another hurdle is the port, which is too far.

There are other issues such as lack of proper infrastructure, lengthy procedures, among others. Based on my discussion regarding the fast track, I would say that the process was too lengthy. In mid-2017, we thought to construct the fast track through a Malaysian company having the expertise in developing highways and digging tunnels in Malaysia. We had business engagements with the local partners also. However, the authorities here took so much of time to decide on the tender. However, we are not complaining about the Nepali authorities.

What about tourism prospects?
Malaysia is trying to attract more tourists from Nepal. We are also working towards developing Malaysia as an education hub to attract students from Nepal, India and other countries. Our primary focus would, however, be India because of its huge population. Moreover, we receive a significant number of Indian tourists every year.

Last year only, Malaysia received one million plus Indian tourists. It is a matter of delight that we received around 50 thousand Nepali tourists last year. We definitely like to increase the number of Nepali tourists. However, both countries need to work hard to promote tourism in both the countries.

A substantial number of Nepali workers are currently in Malaysia. How do your government work to ensure their safety and security?
Yes, a lot of Nepali workers are working in Malaysia. We have also workers from Indonesia, Bangladesh, Vietnam, Cambodia, and Myanmar. However, there are certain policies implemented by the government of Malaysia about rules and regulations that they (workers) need to follow. The government is serious towards the security and welfare of the workers. I do not rule out the fact that some workers are victimized by employers. We are serious that the employers do not exploit the workers, and are benefitted. Things will certainly improve.

There are other concerns such as the implementation of the one-stop service center. Could you clarify on this?
The one-stop visa application had come into effect from September 2016. This means that all necessary process, including the application, visa procedure, and other formalities should go through the center. The Malaysian Embassy, however, has the final authority for visa approval. That is the standard procedure for all the countries, including Nepal. It is not a strange procedure.

Is it that Malaysia will resume the hiring process of Nepali workers soon?
This is all about the labor issue again. After the singing of the MoU last year, we are ready to hire Nepali workers. There is no pending issue on our side. The Government of Nepal has to accelerate the process. We are ready to discuss the mechanism under the joint working group and resume the process.

Does it mean that hat the ball in Nepal’s court?
I wouldn’t say that. However, Nepal should first clear the confusion. The process should go through two approvals. Currently, around 7 thousand plus workers have completed the process. They are waiting for the second approval from the Ministry of Labor. We have been informed last week that they have been approved and can apply for a visa. Will issue the visa once we received the application from them.

Could you elucidate about the free visa and free ticket status?
Let me clarify you that since Nepal introduced the free visa and ticket policy, it is up to it how it would implement the policy. The government should monitor that the stakeholders followed the policy. We agreed on the policy thinking that the stakeholders, including the workers coming to Malaysia, would abide by the policy.

We have the mechanism to ensure its strict implementation such as the security screening is the first stage in the procedure. Failing in the first stage will be barred from the second screening. The same implies medical examination. We check all the system, which is interlinked with our immigration department.

The immigration department issues the approval letter once the name and the medical report are right. Similarly, another layer of screening will be carried out in the embassy.

KATHMANDU: Securities Board of Nepal (SBN) has  made an arrangement for general people so that one can apply for minimum 10 units of shares, reversing the earlier decision to apply for minimum 50 units of shares.

The decision has been made in a bid to encourage the participation of all the people in the investment under the inclusive decision system , said the SBN.

SBN is hopeful that this decision will help achieve the goal of ‘one citizen one demat’ by providing access to all students to house wives and those with little money in the capital market.

MELBOURNE: The city of Melbourne came to a standstill after tens of thousands marched demanding better working condition. The rally comes ahead of the national elections slated for May.

The opposition Labor party wants to make moribund wages a focus of its election campaign, with its union allies claiming “Australians have seen the largest fall in their living standards in 30 years”.

The governing conservative Liberal-National coalition has been arguing that company tax cuts were the best way to boost wages.

KATHMANDU: The government has planned to build 45 new cities at various locations in the country. According to the plan, the Ministry of Urban Development will build 27 new cities, 13 smart cities and 5 mountain cities.

The Department of Urban Development and Building Construction has initiated its works on building cities as per the government’s plan.

“Of the 27 cities, the feasibility study of 12 cities lying along the mid-hill highway has been completed,” said Kishor Lal Mahaju, project chief.

Similarly, the feasibility study of other 10 cities that fall along the postal highway and five in Tarai-Madhes region, 13 smart cities and five in mountainous region have been expedited.

SINDHUPALCHOWK: Nepal-China border Tatopani checkpoint will come into operation from May. The border checkpoint, which is important from the point of Nepal-China trade, had been closed following the Gorkha earthquake that hit Nepal on April 25, 2015.

“Preparations are underway to resume operation of Tatopani checkpoint from May 31,” said Minister for Physical Infrastructure and Transport Raghubir Mahaseth following his field visit to the under-construction of the checkpoint on Tuesday.

The reconstruction of Arniko Highway is in full swing to resume the checkpoint which is strategically important for the nation’s economy.

KATHMANDU: The Supreme Court (SC) has ordered the government to recover the capital gain tax from Ncell and Axiata on sale of Ncell, within three months.

Making public the details of the mandamus order made by the court on February 6, the apex court stated the government should recover the tax within three months.

An extended full bench headed by Cholendra Shumsher Rana on February 6 had ordered Ncell and Axiata to foot capital gains tax amounting to over Rs 61 billion to the government.

KATHMANDU: Finance Minister Dr. Yuba Raj Khatiwada has said the government was preparing to bear the health insurance premium of absolute poor.

He added that it was the government’s policy to include all the people in health insurance.

Currently, the government has been bearing Rs 100 thousand as a health insurance premium of the elderly citizens above 70 years through the Health Insurance Board.

PARIS: Society General Bank of France on Tuesday decided to cut its as many as 1,600 staffers working in different branches of the company across the globe.

Among those laid off  are 750  staffers from France alone. The bank took a decision to this effect in order to implement its two big restructuring projects.

“To ensure profit-oriented and sustainable growth at the international banking and financial service is the main goal of the move,” said the bank.

The staffers from France are given voluntary retirement while those from other countries dealt with in line with the local regulations and laws.

A total of 148,000 staffers are currently working in this multinational investment bank worldwide.

(Agencies)

KATHMANDU: Passengers are increasingly attracted to the Sajha Yatayat after the company initiated e-ticketing service as a pilot project some two weeks ago.

Sajha said that it would be easier for passengers to pay bus fare through card rather than cash so the new service would be effective.

Mahendra Raj Pandey, manager of Sajha Yatayat, shared that the cards are being sold out from its Pulchowk-based office and staffs including helper of the bus.

“Enforcement of card system in other bus services beside Sajha would be easier for passengers”, he said.
The Sajha Yatayat has introduced new facilities in public transport sector of Nepal. It has recently added 20 city buses in different routes of Kathmandu Valley.

Sajha had started its transport service in the country some 56 years ago. It is gaining popularity as a public transport service provider.

KATHMANDU: The World Bank (WB) has projected that Nepal will achieve economic growth of over 6 % in the current fiscal and in the next two years.

The South Asia Economic Focus (SAEF) of the WB said so by making its projection of the economic growth of the South Asian countries including Nepal.

Nepal is placed in third in rank in terms of economic growth in the existing fiscal and in the next two years. According to the WB, India and Bangladesh will achieve highest economic growth while Afghanistan will lag far behind in terms of economic growth in as per the projection.

According to the WB’s projection, Nepal will achieve 6 % economic growth in the current fiscal and 6.1 % in the next two years.