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Malaysia Enforces Labour Law Compliance, Penalizes 400 Companies for Violations in 2023

by Richie
09/15/2023
in Compliance, Supply Chain Transparency

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In Malaysia, enforcement efforts against labour law violations have resulted in penalties for 400 companies during the current year. This information was reported by Bernama, the state news agency, and comes from Human Resources Minister V Sivakumar.

According to the details provided, the Malaysian labour department issued fines amounting to a total of 2.17 million ringgit (approximately $463,000) to 272 employers. Additionally, the courts imposed fines on 128 employers, totaling 242,000 ringgit (around $51,700). The nature of these violations primarily included illegal wage deductions, as stated by Minister Sivakumar. However, specific company names and detailed descriptions of the offences were not disclosed.

Malaysia plays a crucial role in the global supply chain, with its industries spanning from palm oil production to semiconductor chip manufacturing, and including the production of medical gloves. The country relies heavily on migrant workers in its manufacturing and plantation sectors.

Malaysian companies have come under scrutiny and faced restrictions, particularly from the United States, due to allegations of labour abuses against these migrant workers. The reported abuses encompass a range of issues, including debt bondage, excessively long working hours, the retention of passports, and poor living conditions in worker dormitories.

Malaysia has set an ambitious goal to eradicate forced labour practices by 2030, as part of its commitment to uphold labour standards and protect workers’ rights. This latest round of penalties reflects the country’s ongoing efforts to ensure compliance with labour laws and to address issues within its workforce management practices.

Breaking supply chain news is just a click away at The Supply Chain Report. Enhance your knowledge of international trade at ADAMftd.com with free tools.

#MalaysiaLabourLaw #LabourLawEnforcement #MalaysianWorkforce #ForcedLabourEradication #MigrantWorkersRights #GlobalSupplyChain #HumanRightsMalaysia #LabourLawCompliance #WorkerProtection #Malaysia2023

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