Untold Damage To Economy Unless Govt Tackles Forced Labour Claims Ex Minister

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Reforms toward national recovery from the Covid-19 pandemic should include changes in labour policies that affect both local and migrant workers, the government was told today.
On the issue of migrant workers, the Economic Club of Kuala Lumpur Advisory Council chairperson Abdul Wahid Omar (above) warned that failure to address allegations of forced labour would result in untold damage to the economy.
"Many of the allegations relate to the bonding of foreign workers by recruitment agents in the country of origin.
"This is a major pressing issue that needs to be addressed by the government in two areas," said the former minister in the Prime Minister's Department in a keynote address at the virtual National Recovery Summit today.
"First is in respect of engaging with the US government to secure upliftment of the Withhold Release Orders (WRO) by the US Customs and Border Protection (CBP) issued to four Malaysian companies.
"Second is in respect of the policy on the appointment of foreign recruitment agents which charge exorbitant fees to foreign workers," Wahid added. 
The WRO list was issued by the CBP which prevents imported goods from entering the US effectively, if they are suspected to be produced under forced labour.
Four Malaysian companies remain listed under the WRO - Sime Darby Plantation, FGV Holdings, Top Glove and TG Medical - representing two major areas of export which are palm oil and rubber gloves.


Elements of forced labour found in various manufacturing sectors also saw Malaysia downgraded to Tier 3, the worst tier, in the US State Department's annual report on human trafficking.
"Unless addressed urgently, the WRO and categorisation of Malaysia as a Tier 3 country under the Trafficking in Persons report will cause untold damage to the Malaysian economy.
"This is because, in line with global commitment towards sustainability, many global businesses will exclude companies that are accused of engaging in forced labour practices and modern slavery from the supply chain," Wahid said. 
Meanwhile, labour reforms that affect local workers include a move from a minimum wage towards a living wage.
In making the call, the former prominent banker said the government should follow through with the identified reforms as part of its bigger agenda towards national recovery from the Covid-19 pandemic.
The virtual summit was jointly organised by the National Recovery Council, the Economic Club of Kuala Lumpur and think-tank KSI Strategic Institute for Asia Pacific.
In his opening speech, Finance Minister Tengku Zafrul Abdul Aziz described the National Recovery Plan (NRP) as a comprehensive approach to restoring consumer confidence while allowing the economy to open safely.




Finance Minister Tengku Zafrul Abdul Aziz
"At its heart, the NRP will catapult the nation on the path to recovery.
"Drawing on advice by the World Health Organisation and the experience of countries like the United Kingdom, Australia and New Zealand, the NRP holistically assesses a state’s readiness to ease restrictions while recognising the need for a multi-faceted recovery," he said.
As the government continues to ease Covid-19 restrictions, Malaysia has set an October target to vaccinate 100 percent of its adult population, while continuing to increase vaccination among teenagers aged 18 and below.  - Mkini

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