Home Minister Saifuddin Nasution Ismail today said Malaysia's rankings on the 2023 edition of the US State Department's Trafficking in Persons Report will have a long-term impact on the economy.
Specifically, Saifuddin pointed to Malaysia's plantation and manufacturing sectors which have seen several major companies being placed and subsequently removed from the US Customers and Border Protections import sanction list over concerns of forced labour in the supply chain.
"Like it or not, this is the system we're living in. There are those evaluating us.
"If our rankings were to drop (again), it will have a long-term economic impact," he told a press conference at the Home Ministry in Putrajaya today.
The companies include Sime Darby Plantations and Felda Global Ventures in the plantations sector and Top Glove, one of the largest rubber gloves exporters.
The newly launched report now placed Malaysia on the Tier 2 Watch List, which are countries that do not fully meet the US minimum standards on fighting human trafficking but are making significant efforts.
This is an improvement from being in the lowest Tier 3 category in 2021 and 2022, a progress which Saifuddin (above) said will have a positive impact in terms of easing restrictions on Malaysia's export to the US.
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"That is the significance of the report to Malaysia's economy, whether our products are marketable or not," he said.
Countries in Tier 3 may also face restrictions of assistance from the US, sanctions, or ineligibility to trade benefits.
Involvement of civil servants
According to the report, the government did not meet the minimum standards by failing to prosecute labour traffickers sufficiently criminally in the palm oil and disposable glove manufacturing industry.
At the same time, Saifuddin also noted a specific recommendation on addressing the alleged involvement of civil servants in human trafficking cases.
"If there are civil servants directly or indirectly involved, we must focus on this matter," he said.
He said so far, there are no related convictions against civil servants, but the US TIP report had noted the possible roles of law enforcers to facilitate human traffickers.
Saifuddin, however, declined to comment on alleged elements of corruption within the civil service that are linked to human trafficking cases.
Malaysia has one year up to March 31 next year to implement 15 recommendations made in the US TIP report.
More efforts underway
Meanwhile, Human Resources Minister V Sivakumar said efforts to eradicate forced labour in the country will be comprehensively increased through the amendment of the Labour Act 1955 (Amendment 2022) which came into force on Jan 1 this year.
The addition of Section 90B provides for penalties against employers who commit forced labour offences under the Act, the minister said in a statement today.
This, he said, was among the measures taken to combat issues related to forced labour as well as those stated in the report.
“The cooperation with the US would be strengthened through the establishment of a Joint Working Group to improve the country's image, while also ensuring that local products would not be subjected to restrictions, namely a Withhold Release Order by the United States Customs and Border Protection Department due to forced labour issues.
“The government is also cooperating with representatives of trade unions, employers' federations and industries to implement the National Action Plan on Forced Labour 2021-2025.
“This is in line with the country’s commitment, which had ratified the 2014 Protocol to the Forced Labour Convention 1930,” he said.
The government, he said, is also committed to better dealing with issues related to the management of foreign workers, including establishing strategic cooperation with source countries. - Mkini
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