Malaysia to Sanction Firms and Recruitment Agencies Involved in Hiring Stranded Migrant Workers: Reuters Reports

The Malaysian government has announced that it will sanction firms and revoke recruitment agency licenses that hired migrant workers, who were then left stranded without jobs. The sanction comes following reports from last week revealing that hundreds of migrants from South Asia, primarily from Bangladesh and Nepal, were left in limbo after being made to pay high recruitment fees, only to be told upon arrival in Malaysia that the jobs promised to them were no longer available.
        This announcement highlights the ongoing concerns of workplace abuse in Malaysia, with several companies facing bans for forced labor in recent years. The stranded workers have not been paid their salaries for several months, and the authorities are investigating the firms and agencies involved in their recruitment. Malaysia’s Labor Department vowed to take strict action against those found guilty of misusing government quotas and licenses for hiring migrant workers. In a statement last Monday, the department announced that it would not compromise “any unlawful activities that could lead to any form of forced labor.”
        The department stated that it had relocated some of the stranded workers to government-registered quarters and demanded that companies pay for their accommodation and salaries. However, it did not specify how many workers were affected or the number of firms and agencies under investigation. Responding to reports that two Nepali citizens had died by suicide in a workers’ accommodation facility, the department denied the allegations, describing the claims as “unfounded.” The police had determined that only one death had occurred – that of a Nepali recruitment agent who had travelled to Malaysia to oversee the cases of struggling workers.
        This announcement highlights the ongoing issue of labor exploitation and abuse in Malaysia. In 2019, the U.S. banned a total of 28 Malaysian companies that produced palm oil, rubber, and electronics from trading with U.S. companies, citing forced labor and human trafficking violations. In recent years, there have also been reports of slavery on fishing boats in Malaysian waters, including on vessels supplying seafood to the world’s largest retailers and brands. Despite this, Malaysia remains one of the largest importers of foreign workers in the world, with millions of migrant workers employed in the country’s industries.
        The Malaysian government has been under pressure to reform its labor policies and curb workplace abuses. In 2020, they introduced sweeping labour reforms to create a more comprehensive framework to protect the nation’s workforce and ensure compliance with international standards. Despite these efforts, exploitation persists. While the government’s recent action is welcome, more needs to be done to protect the rights of workers and to prevent them from being victimized by unscrupulous employers or recruitment agencies.
        While Malaysia’s Ministry of Human Resources estimates that around 2 million of the country’s foreign workers do not have work permits, other sources suggest that there is a much higher number of unregistered migrants in the country. The COVID-19 pandemic has worsened the situation, with many workers left without employment, and unable to return home due to travel restrictions. In conclusion, this announcement highlights the ongoing need for governments, NGOs, and businesses to work together to tackle exploitation and ensure that everyone has access to decent work and fair wages.