Govt urged to consider labour reform related to minimum wage, foreign labour

The proposed reform involves, among others, a gradual planned increase in minimum wage moving towards "living wage" and a review of the policy on recruitment of foreign labour, he said.

"This is in line with the commitment to further strengthen the sustainability agenda in Budget 2022 as stated in the Pre Budget Statement," he said in his welcoming address at the one-day National Recovery Summit organised by KSI Strategic Institute For Asia Pacific held virtually today.

According to him, there is a pressing matter that needs immediate attention in terms of foreign labour, which is the allegations of forced labour and modern slavery that currently affect some plantation companies and rubber glove manufacturers.

"Many of the allegations relate to the 'bonding' of the 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.

"One is in respect of engaging with the US government to secure the upliftment of the withhold release orders (WRO) by the US Customs and Borders Protection issued to four Malaysian companies and second is in respect of the policy on the appointment of the foreign recruitment agents which charge exorbitant fees to the foreign workers," he said.

Abdul Wahid warned that unless addressed urgently, the WRO and the categorisation of Malaysia as a Tier 3 country under the Trafficking in Persons report would cause untold damage to the Malaysian economy.

"This is because in line with global commitment towards sustainability/ ESG (environmental, social and governance), many global businesses will exclude companies that are accused of engaging in forced labour practices and modern slavery from the supply chain. If this spreads to the electronics and electrical sector, the damage will be irreparable," Abdul Wahid cautioned.

The National Recovery Summit aims to provide further information and clarifications on the National Recovery Plan as well as gathering support from businesses, the civil society, think tanks, experts, and academicians.