Dyson told Reuters last week it would sever ties with ATA, which makes parts for its vacuum cleaners and air purifiers, in six months following an audit of the company’s labour practices and allegations by a whistleblower.

ATA, which gets 80% of its revenue from the home appliance maker, reiterated this week it took the accusations seriously and that findings from a labour audit were inconclusive. It had previously denied the forced labour allegations.

Human resources minister M Saravanan, in a statement, urged employers and industries to conduct due diligence on workers’ rights and welfare to ensure Malaysia was no longer linked with forced labour practices.

He told the Dewan Rakyat yesterday that the authorities would charge ATA following complaints received by the labour department. However, he did not say what were the complaints received nor did he specify the charges.

“Forced labour issues linked to local companies in the electronic and rubber gloves manufacturing sector, and palm oil plantations have projected a negative image of the country and this has affected foreign investor confidence towards Malaysia’s supply of products,” Saravanan said.

Malaysia, a key manufacturing hub, has faced scrutiny this year over claims that migrant workers were being subjected to abusive working and living conditions. Foreigners are a significant part of its workforce.

The US Customs and Border Protection service has banned six Malaysian firms, including rubber glove makers and palm oil producers, in the last two years from selling their products to the United States after finding evidence of forced labour.

In July, the US State Department put Malaysia on a list with China and North Korea, saying it had not made progress in eliminating trafficking of workers.

Shares of ATA have dropped nearly two-thirds since the Dyson announcement. The company has warned of sharp revenue declines and cost cuts.

Last week, Saravanan said his ministry was investigating Dyson’s decision to terminate the ATA contract.