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Saturday 22 November 2014

Malaysia on US watch list for ‘forced labour’

“It could be that a small and isolated group of companies did not fully comply with international labour requirements and practices.”

FMT

GEORGE TOWN: Malaysia risks being placed on a US watch list from December 1 for the export of electronic products following allegations that it uses forced labour in the electronic industry. The net effect of being placed on the watch list is that there would be restrictions on exports to the US.

The allegations on forced labour are contained in the Verite Report, funded by the US Labour Department. The report, released in September 2014, alleged that forced labour makes up 28 per cent of workers in the electronics industry in the country.

“The International Trade and Industry Ministry (Miti) and the Human Resources Ministry should work together to rebut the allegations published in the recent Verite report,” said Penang Chief Minister Lim Guan Eng in an immediate reaction.

“The export of electronic products to Europe may also be affected, as Europe normally follows in the footsteps of the US.”

Lim alleged that there had been a delay in responding to the threat as Miti had passed the buck to the Human Resources Ministry. “Invest Penang has addressed some of the issues with the US authorities, but it was only a state body with limited powers.”

About half of Malaysia’s exports of electronic products are from Penang.

“It could be that a small and isolated group of companies did not fully comply with international labour requirements and practices,” said Heng Huck Lee, the chairman of the Association of Free Industrial Zone Penang Companies.

“The Malaysian authorities should act quickly against these companies and gather evidence and data to prove that the majority of the electronics companies are not engaging forced labour.”

Forced labour takes different forms, including debt bondage, trafficking and other forms of modern slavery. The victims are the most vulnerable: women and girls forced into prostitution, migrants trapped in debt bondage, and sweatshop or farm workers kept there by clearly illegal tactics and paid little or nothing.

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