A company or business in Malaysia that has not yet taken steps to mitigate and ultimately eliminate human trafficking, forced labour, and slavery, as well as child labour where applicable, whether in its business operations or supply chain, may consider the following measures:

• Start by understanding each of these concepts and identifying how they are material to your business and operational needs.
• Review and evaluate your policies and processes related to the hiring, minimum terms of employment, and welfare of your employees, especially foreign workers, for compliance with local laws. Relevant laws include:

  • Employment Act 1955 and other legislation concerning employees’ rights and benefits

  • Children and Young Persons (Employment) Act 1966

  • Immigration Act 1959/63

  • Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act 2007

  • Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990

• Take guidance from international standards. Helpful resources include:

  • The Universal Declaration of Human Rights and other UN or European Union conventions, protocols, directives, reports, or fact sheets

    Standards set by the International Labour Organization (“ILO”) and International Organization for Migration (“IOM”)

  • Guidelines such as Responsible Business Conduct and other recommendations issued by the Organisation for Economic Co-operation and Development (“OECD”)

  • Recommendations in the TIP Report

• Conduct training to raise awareness among employees about the importance of eliminating human trafficking, forced labour, slavery, and child labour. Additionally, train management and HR staff in identifying and addressing these issues.
• Collaborate with NGOs and government agencies to share resources and expertise, supporting and enhancing respective efforts.
• Conduct regular internal audits or engage third-party auditors to assess company practices.
• Impose requirements on and/or audit supply chains to ensure their compliance with ethical standards and legal requirements.
• Undertake voluntary reporting or disclosure based on local guides, such as Bursa Malaysia’s Sustainability Reporting Guide and Capital Markets Malaysia’s Simplified ESG Disclosure Guide for Small and Medium Enterprises in Supply Chains, to enhance transparency and accountability.

These measures are not exhaustive, but they offer ways for companies and businesses in Malaysia to contribute towards eradicating human trafficking, forced labour, slavery, and child labour, and building a more ethical and sustainable future as part of their ESG commitment.

If you have any queries, please contact the author, Tan Hooi Ping (hpt@lh-ag.com).

REFERENCES

[1] https://my.usembassy.gov/2024-trafficking-in-persons-report-malaysia/#:~:text=MALAYSIA%20(Tier%202)\&text=

The%20Government%20of%20Malaysia%20does,was%20upgraded%20to%20Tier%202

[2] Section 90B of the Employment Act 1955 and Section 2 of the Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act 2007

[3]https://www.ilo.org/topics/forced-labour-modern-slavery-and-trafficking-persons/what-forced-labour#:~:text=%E2%80%9CForced%20labour%E2%80%9D%2C%20%E2%80%9Chuman,clear%20definition%20in%20international%20law

[4] https://www.ekonomi.gov.my/en/sustainable-development-goals

[5] https://sdgs.un.org/2030agenda ; 8.7: Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, , including recruitment and use of child soldiers, and by 2025 end child labour in all its forms.

[6]https://www.thestar.com.my/news/nation/2024/07/18/nga-malaysia-committed-to-un-sdgs