Malaysian electronics sector in danger of being placed on US watch list
Putrajaya's delay in rebutting an international global labour rights group report on forced labour in Malaysia's electrical and electronic (E&E) sector could place the country on a watch list that will affect the billion-ringgit industry, warned an opposition MP.
Responding to the US Labour Department-funded Verite on its September findings that nearly one in three of 350,000 workers in Malaysia's electronic industry suffered from conditions of modern-day slavery such as debt bondage, Sim Tze Tzin (PKR-Bayan Baru) said several measures had been put in place, especially in Penang, to protect workers’ welfare.
Besides existing federal laws aimed at ensuring workers’ welfare, the industry also self-regulates itself through the Electronic Industry Code of Conduct (EICC) and sample surveys by InvestPenang showing that four out of five companies are already EICC-compliant.
"However these improvements were not properly communicated by Miti to the US Labour Department," Sim said, referring to the International Trade and Industry ministry.
"The US embassy had alerted Miti as well as other stakeholders as early as October but no feedback was presented to counter Verite’s report by the December 1 deadline," he said at a press conference at the parliament lobby today.
If Malaysia failed to meet the deadline, the country would be put on a watchlist which Sim said would have "damning implications" on the E&E sector, including the possibility of shrinking foreign direct investments.
He said the country could not afford to have the sector placed on a watchlist as E&E was the largest sector in terms of exports.
In 2013, exports from the E&E industry amounted to RM236.8 billion, equivalent to 33% of Malaysia's total export of RM720 billion.
"In short, this is the single biggest threat to the survival of the E&E sector in Malaysia," he said.
He called on Miti to immediately respond to the US Labour Department to counter the issues raised by Verite and work with the American Chambers of Commerce to produce a counter report.
He also called on all stakeholders to commit to best practices of labour standards, reduce dependency on foreign labour, enforce existing laws strictly and allow the sector to set up labour unions to improve workers’ conditions.
Following Verite’s findings, the International Labour Organisation (ILO) urged Putrajaya to speed up and broaden a draft bill regulating private employment agencies to curb forced labour and worker abuse in the electronics industry.
The Malaysian Trades Union Congress (MTUC) had also told The Malaysian Insider that the electronics industry was firmly resistant to the formation of trade unions, and that those who had expressed an interest in starting a trade union were swiftly sacked.
In replying to the debate on Budget 2015 at the committee stage, Deputy International Trade and Industry Minister Hamim Samuri said the human resources ministry will handle the matter.
"We have discussions with various stakeholders including the human resources ministry and it is better for the ministry to answer this," he said. – November 17, 2014.
