Kathmandu, March 28 -- In the past year, about 260,000 Nepali workers flocked to Malaysia to work in factories, service stations, and palm and rubber plantations. A similar number were preparing to go in the coming 12 months.

But the Malaysian government has abruptly capped the proportion of foreign workers in its labour force to 15%, and will stop issuing worker visas after May.

Making up more than one-third of all departures last year, Malaysia is the top overseas labour destination for Nepalis, An estimated 500,000 are working there. Now, many Nepalis may choose to overstay, and join the ranks of their undocumented compatriots.

The reliance of Nepal's economy on remittances is precarious. West Asia has nearly 2 million Nepali worke...