Malaysia’s position as a major hub for global manufacturing and export processing has generated significant economic growth over recent decades, yet this growth has come at a profound and largely unaccounted social cost. This paper documents widespread violations of labour standards across the electronics, palm oil, rubber glove, and textile sectors.
Corporate accountability frameworks — including the EU Corporate Sustainability Due Diligence Directive and the US Uyghur Forced Labor Prevention Act — are beginning to reshape the expectations placed on companies sourcing from high-risk jurisdictions.
The audit-based compliance model that multinational buyers rely upon has proven structurally incapable of detecting the conditions that give rise to labour exploitation.
This paper concludes with a set of actionable policy recommendations directed at the Malaysian government, importing-country regulators, and industry stakeholders.