PUBLICATION

Building Back Stronger?

Malaysia is poised to re-emerge as a global leader in semiconductors and electronics exports, but its reliance on temporary migrant labour raises serious human rights concerns. Mounting pressure from consumers, investors, and stakeholders demands stronger labour protections. This raises critical questions about the industry’s readiness to adapt while remaining globally competitive.

This policy paper highlights the vulnerabilities of migrant workers in Malaysia’s electronics industry, where flawed immigration policies and harmful labour practices, such as unfair wages, unsafe conditions, excessive hours, and unethical recruitment, expose them to forced labour. It calls for industry- and society-wide action to address systemic causes through stronger regulations.

Key measures include stronger regulations on wages, conditions, working hours, and recruitment, alongside improved unionization and access to justice for migrant workers. Most importantly, mandatory due diligence should be imposed, compelling electronics company to comply with global human rights standards at the supply chain level, such as the European Union’s (EU) Corporate Sustainability Due Diligence Directive (CSDDD) as well as the EU’s prohibition on products made with forced labour.

Further, it is necessary to enforce a stronger public accountability system that aims to pinpoint and disclose companies that persistently violate human rights, including those that engage in forced labour practices.

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