Malaysia Penalizes 400 Companies in 2023 for Labor Offences


 Malaysia has taken action against 400 companies so far this year for violating labor laws, state news agency Bernama reported, citing Human Resources Minister V. Sivakumar.

The ministry’s labor department issued fines totaling 2.17 million ringgit ($463,000) against 272 employers, while the courts fined 128 employers a combined 242,000 ringgit, Bernama cited Sivakumar as saying on Thursday, Sept 14.

The labor violations included illegal wage deductions, Sivakumar said.

The minister did not name the companies, nor did he give details of the labor offenses.

Malaysia is a key link in the global supply chain, manufacturing everything from palm oil to medical gloves and semiconductor chips.

Malaysian companies have faced U.S. bans in recent years over allegations of abuses against migrant workers, who are employed widely in the country’s manufacturing and plantation industries.

The allegations of forced labor include debt bondage, excessive working hours, retention of passports, and unhygienic dormitories.

Malaysia has set a target to eliminate forced labor practices by 2030.