Malaysia-1st-Forced labour and modern slavery

By Daniel Morris | 13. January 2026

A NATIONAL ACTION PLAN ON BUSINESS AND HUMAN RIGHTS IS ESSENTIAL TO MEET OUR HUMAN RIGHTS OBLIGATIONS

What is the risk of inaction?

[…]

“Forced labour sanctions and export restrictions: Labour rights violations have already led to foreign sanctions. Without decisive action to eliminate forced labour, Malaysia risks broader sanctions or loss of preferential trade status. In practical terms, entire industries could see diminished demand as global buyers seek clean supply chains. This would undercut Malaysia’s export-led growth and undermine the livelihoods of countless law-abiding businesses. Consequences extend beyond individual firms; they threaten Malaysia’s image as a moderate nation and active member of the UN. Inaction would signal a toleration of exploitation.”

THEMATIC PRIORITY 2: LABOUR

UNGP PILLAR 1

The State Duty to Protect Human Rights

“In Malaysia, fundamental rights at work are impeded by numerous challenges, including allegations of modern slavery, encompassing incidences of forced labour, child labour and other forms of labour exploitation. Labour issues continue to highlight the critical intersection between business activity and human rights, revealing the complexities of balancing economic growth with ethical labour practices” […] “The Government has implemented various initiatives under KESUMA to address labour issues and promote fair and ethical working conditions. This is evidenced by the establishment of strategic frameworks such as the National Action Plan on Forced Labour (NAPFL) 2021-2025 that underscores Malaysia’s commitment to eliminate the use of forced labour in any and all forms by 2030, aligning with international standards such as the ILO Forced Labour Convention, 1930 (No. 29) and the Protocol of 2014 to the Forced Labour Convention, 1930 (P029).” […]

FOUNDATIONAL

No.: L1.2.

Action: Align the Employment Act 1955 [Act 265], the Sabah Labour Ordinance [Cap 67] and the Labour Ordinance Sarawak [Cap 76] on the issue of forced labour, consistent with ILO Protocol of 2014 to the Forced Labour Convention, 1930 (No. 29).

Output indicator(s):

  • Multistakeholder consultations are organised to support the legislative harmonisation process.
  • Legal provisions are revised or introduced that ensure all three labour laws equally address the prevention and protection against forced labour and the provision of remedy.

Collaborative partner(s): KESUMA; State governments and agencies

FORCED LABOUR, CHILD LABOUR, AND OTHER FORMS OF LABOUR EXPLOITATION

No.: L1.5.

Action: Enhance the enforcement of all relevant provisions on forced labour, child labour and other forms of labour exploitation based on the ILO Indicators of Forced Labour.

Output indicator(s):

  • Number of trained labour inspectors increased, especially in sectors employing migrant workers and other groups vulnerable to forced labour and child labour.
  • Revisions to labour rights protection frameworks are proposed that consider the challenges of enforcement related to domestic work.
  • List of blacklisted agencies is updated and published frequently

Collaborative partner(s): KESUMA

No.: L1.6

Action: Strengthen the implementation of national laws related to public housing and migrant workers’ accommodations, such as the Workers’ Minimum Standards of Housing and Amenities Act 1990 [Act 446] and relevant provisions under the Local Government Act 1976 [Act 171] .

Output Indicator(s):

  • Operational relationships between federal and state agencies and local authorities are effectively aligned through enforcement operations, compliance reviews or joint inspections.
  • Evidence, insights and recommendations are developed based on a survey on Standard Operating Procedures (SOPs).

Collaborative Partner(s): KESUMA ; KPKT; State governments or authorities

No.: L1.7

Action: Address the implementation gaps related to recruitment agencies’ processes and prohibit the charging of recruitment fees or related costs to migrant workers in line with ILO standards.

Output Indicator(s):

  • Enforcement actions are taken against agencies violating recruitment regulations.
  • Up-to-date guidance on the Employer Pays Principle and zero-cost policy is developed for recruitment agencies (and their business partners) and workers.

Collaborative Partner(s): KESUMA

No.: L1.8

Action: Review bilateral agreements or Memorandums of Understanding (MOUs) with countries of origin to include enhanced provisions related to the rights, benefits, and welfare of migrant workers and ensure responsiveness to labour market requirements.

Output Indicator(s):

  • Increase the number of multistakeholder consultations informing bilateral negotiations, ensuring the inclusion of CSOs and workers’ rights advocates.
  • Summary of signed MOUs are published for existing and new agreements.

Collaborative Partner(s): KESUMA

No.: L1.9.

Action: Facilitate documentation for children of migrant workers whether through facilitating safe access to birth registration processes or a joint documentation exercise with the relevant diplomatic missions for undocumented children.

Output indicator(s):

  • Policies or procedures are adopted that enable safe and non-discriminatory access to documentation services for migrant children.
  • Number of migrant families assisted in safely accessing national birth registration services for their children.

Collaborative partner(s): MOHA; National Registration Department

UNGP PILLAR 2

No.: L2.10

Action: Do not retain migrant workers’ passports, contracts or other identity documents, and respect their freedom to leave, change employment or to return to their countries of origin.

  • UNGP PILLAR 3

No.: L3.2

Action: Establish an industry-based funding mechanism for purposes of worker remediation in cases of violations of the ILO Indicators of Forced Labour.

Output Indicator(s):

  • Tripartite engagement sessions are convened to develop and pilot a sectoral compensation scheme for high-risk sectors.

Collaborative Partner(s): KESUMA business association; trade unions