Page 47 - BPAReport

57. Various indications are used to ascertain when a situation amounts to forced labour
such as restriction on workers’ freedom of movement, withholdings of wages or identity
documents, physical or sexual violence, threats and intimidation or fraudulent debt from
which workers cannot escape.5

58. There has been several reports of forced labour practices and conditions involving
migrant labour in Malaysia. According to several NGO’s and independent social audits, forced
labour is a problem in Malaysia with migrant workers especially in the palm oil, electronic
industry and manufacturing sector.

59. The issue of forced labour in Malaysia has grave repercussions for Malaysia’s
economy and global reputation. Therefore it is imperative that Malaysia take urgent steps to develop its
capacity to address forced labour in Malaysia.

60. The present laws against forced labour in Malaysia are stated in the Penal Code and the
Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act 2007.

Other transgressions and shortcomings

61. Stakeholders have made reports about unreasonable and illegal deductions of wages
of foreign workers to offset expenses incurred in the recruitment process as well as in
fulfilling the Malaysian employment law requirements.

62. Complaints have also been raised that age limitation placed on the recruitment of
foreign workers at 45 years is discriminatory and should be raised. Similarly they contend
that not allowing PLKS foreign workers to bring in family members or to get married is
equally discriminatory and against international human rights provisions. In any case, the
reality on the ground demonstrates that these restrictions cannot be enforced adequately.

4.11 Source country issues and MOUs

63. As pointed out above, there is also widespread corruption in source countries
stemming from the use of selected, preferential and monopolistic agents for recruitment and
pre-departure training of prospective foreign workers. In addition, in the absence of formal
MOUs, the established recruitment costs charged to Malaysian employers as well as hidden
fees imposed on the departing workers are on most occasions not transparent.

64. Stakeholders, particularly employers and those from civil societies strongly support
the development of bilateral MOUs with source countries. However, they demand that the
process be made more transparent and inclusive, and that the MOUs be disclosed to the
public, with sensitive information removed. In particular, they insist that before the MOUs
are negotiated with the source countries they should be discussed in consultations with all
relevant stakeholders in Malaysia. They expect that a similar parallel process of consultations
will also take place in the source country. This will allow the relevant stakeholders who are
closer to the ground to provide their inputs and concerns to better safeguard the welfare of the
foreign workers as well as the Malaysian employers.

5 ILO Indicators of Forced Labour: retrieved from https://www.ilo.org

45