AbstractMalaysia to cost ATA after receiving complaints – ministerEmployers, industries urged to enhance due diligenceMalaysia below nearer scrutiny over migrant abuse
KUALA LUMPUR, Dec 1 (Reuters) – Forced labour allegations towards Malaysian companies are affecting overseas buyers’ confidence within the Southeast Asian nation, a minister stated on Wednesday, days after Dyson lower ties with Malaysian provider ATA IMS (ATAI.KL) over labour abuse claims.
Dyson instructed Reuters final week it might sever ties with ATA, which makes components for its vacuum cleaners and air purifiers, in six months following an audit of the Malaysian firm’s labour practices and allegations by a whistleblower.
ATA, which will get 80% of its income from the house equipment maker, reiterated this week it took the accusations severely and that findings from a labour audit had been inconclusive. It has beforehand denied the pressured labour allegations.
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Human Resources Minister M. Saravanan, in a press release, urged employers and industries to conduct due diligence on staff’ rights and welfare to make sure Malaysia is not tied to pressured labour practices.
Saravanan instructed parliament on Tuesday that authorities will cost ATA following complaints obtained by the labour division. learn extra
“Forced labour points linked to native corporations within the digital and rubber gloves manufacturing sector, and palm oil plantations have projected a damaging picture to the nation and this has affected overseas buyers’ confidence in the direction of Malaysia’s provide of merchandise,” Saravanan stated.
Malaysia, a key manufacturing hub, has confronted scrutiny this yr over claims migrant staff are being subjected to abusive working and dwelling circumstances. Foreigners are a big a part of its workforce.
The U.S. Customs and Border Protection has banned six Malaysian companies, together with rubber glove makers and palm oil producers, within the final two years from promoting their merchandise to the United States after discovering proof of pressured labour.
In July, the U.S. State Department put Malaysia on a listing with China and North Korea, saying it had not made progress in eliminating trafficking of staff.
Shares of ATA have dropped practically two-thirds for the reason that Dyson announcement. The firm has warned of sharp income declines and value cuts.
Saravanan on Tuesday didn’t say what complaints the labour division had obtained or specify the fees. He stated final week Malaysia was investigating Dyson’s choice to terminate the ATA contract.
Register now for FREE limitless entry to reuters.comRegisterReporting by Rozanna Latiff and Mei Mei Chu; Writing by A. Ananthalakshmi; Editing by Martin Petty
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