Statement

ILO statement on Verité report on working conditions in Malaysia’s electronics sector

The monitoring group, Verité, has revealed that nearly one in three migrant workers, including Vietnamese, in Malaysia’s electronic sector was under forced labour conditions in their report issued on 17 September.

Press release | 19 September 2014
BANGKOK (ILO News) - The ILO’s Regional Office for Asia and the Pacific (ROAP), is seriously concerned about the findings of the report by Verité, “Forced Labor in the Production of Electronic Goods in Malaysia, A Comprehensive Study of Scope and Characteristics”. Although ROAP is not in a position to verify the specific numbers given in the report, it confirms that there are real problems with working conditions, employment and recruitment practices - particularly in relation to migrant workers - that need to be urgently addressed.

By throwing a spotlight onto these abuses the report creates an opportunity for the Malaysian Government and employers to scrutinise recruitment and employment practices, and review the policies that contribute to making workers vulnerable. In particular, more can be done to make it easier for migrants to change employers, to protect their rights to join trade unions, and to ensure that discussions on migration policies include employers’ and workers’ organizations as well as all relevant parts of the Government.

The ILO has provided comments to the Malaysian Government, workers’ and employers’ organizations, on a draft Bill to tighten the regulation of private employment agencies. We strongly recommend that this Bill be extended to cover outsourcing agencies. The ILO has supported the training of some Malaysian Government labour inspectors, to recognize and deal with human trafficking for labour exploitation. The ILO stands ready to provide further help to tackle these unacceptable abuses.

We recognise the efforts made by those responsible employers in Malaysia who are working to ensure that bad practices are eliminated from their workplaces and supply chains. The ILO is working with the Malaysian Employers’ Federation (MEF) to develop guidelines on the recruitment and placement of migrant workers. The MEF has also made a number of recommendations to the Government on reducing abuses, cutting costs and making the recruitment process fairer and more transparent. The Malaysian Trades Union Congress (MTUC) has long been advocating for better policies, and through their migrant worker resource centres has helped individuals obtain access to justice.


Background note


The monitoring group, Verité, has revealed that nearly one in three migrant workers, including Vietnamese, in Malaysia’s electronic sector was under forced labour conditions in their report issued on 17 September.

The report entitled “Forced Labor in the Production of Electronic Goods in Malaysia, A Comprehensive Study of Scope and Characteristics” presented findings from a two-year investigation funded by the United States Department of Labor. Verité said it followed ILO framework on forced labour.



The report found out that 32 per cent of the industry’s nearly 200,000 foreign workers were employed in forced labour situations, which were linked to passport retention and workers having to work overtime to pay off their debt from illegally excessive recruitment fees.

According to Verité, each Vietnamese worker had to pay 3,500 Malaysian Ringgit (US$1,080) in recruitment fees – the highest amount compared to workers from other countries, including Burma, Indonesia and Nepal. Meanwhile, Vietnamese workers received the smallest wage – a little under 1,000 Malaysian Ringgit ($308) a month.

Up to 40 per cent of Vietnamese workers were categorized in forced labour situation. This was the highest rate compared to other nationalities.