Malaysia Oversight

US-Malaysia trade deal's labour provisions fair but enforcement remains key – NSI

By NST in October 27, 2025 – Reading time 2 minute
US-Malaysia trade deal's labour provisions fair but enforcement remains key - NSI


KUALA LUMPUR: Labour rights provisions in the newly signed US-Malaysia reciprocal trade agreement are fair and aligned with universal standards, says North South Initiative (NSI) executive director Adrian Pereira.

However, he highlighted that domestic enforcement remains the biggest challenge.

“The problem in Malaysia is that enforcement is very weak.

“We have seen this in multiple reports from NGOs and media investigations,” he said when contacted by the New Straits Times.

He said forced labour cases are rarely tested in court due to limited civil society capacity.

Adrian said that for the provisions to make a real difference, the US should also support Malaysia in strengthening its ability to monitor employers involved in human trafficking.

This, he added, was particularly important following US foreign aid cuts that had affected NGOs focusing on migrant workers and their welfare.

Adrian said it was reasonable for the US to request safeguards against forced labour, as no business should profit from exploitation or the use of forced labour to gain a competitive advantage.

He said this move built on reforms initiated since the Trans-Pacific Partnership Agreement (TPPA) negotiations.

“From the time of the TPPA, it set the ball rolling for labour reforms, especially on non-discrimination and equality. So, we do see the value in bilateral agreements,” he said.

Ultimately, Adrian said, Malaysia must act based on principle rather than external pressure.

“We should do it because it’s the right thing to do.

“Anti-slavery is enshrined in our constitution and our laws,” he said.

He also pushed back against claims of foreign interference.

“The labour standards are universally agreed upon, especially in conventions against human trafficking and the International Labour Organisation (ILO) indicators of forced labour.

“The standards are not dependent on Americans – they are universally decided,” he said.

Yesterday, Malaysia and the US signed a wide-ranging reciprocal trade agreement aimed at strengthening bilateral economic ties, expanding market access and bolstering supply chain resilience.

Through the agreement, Malaysia will grant significant preferential market access for American exports covering industrial goods such as chemicals, machinery, electrical equipment, metals and passenger vehicles, as well as agricultural products including dairy, poultry, beverages, rice and fuel ethanol.

Kw: nst, news, Malaysia news, labour rights, workers’ rights, economy, trade, US, Donald , agreement, Asean

© New Straits Times Press (M) Bhd



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