The report is an annual assessment by the US government of the efforts of various countries to combat human trafficking and modern slavery.
Yazid Zul Kepli, a professor of international law at the International Islamic University Malaysia, said a demotion to Tier 3 of the report would have a negative impact on the country’s economic and diplomatic relations.
“It is essential for Malaysia to address human trafficking concerns to avoid these consequences.
“Sanctions on countries in Tier 3 of the report may involve limitations on access to US foreign assistance programmes, financial aid, and loans,” he was quoted as telling New Straits Times.
Yazid said a downgrade might also affect trade benefits and Malaysia’s participation in cultural exchange programmes.
In November, renowned UK-based modern slavery activist Andrew Wallis called on the Malaysian government to “upgrade” its legislation to improve working and living conditions for migrant workers, in line with the expectations in major markets including the US, UK and the European Union.
In an exclusive interview with FMT, Wallis also called on Malaysian businesses to be more aware of stricter legislation introduced in major export markets to tackle human trafficking and modern slavery.
In 2017, Malaysia was on Tier 2 of the report, which lists countries whose governments do not fully comply with the US minimum standards, but are making significant efforts to bring themselves into compliance with them.
Malaysia was downgraded to the Tier 2 Watch List the following year, before being demoted to Tier 3 in 2022.
Tier 3 of the report lists countries that are not making any significant efforts to comply with the US government’s minimum standards.
The country was restored to the Tier 2 Watch List in last year’s edition of the report.
Stiffer penalties
Meanwhile, Parti Kongres Keadilan India Malaysia president R Shanmugam expressed support for plantation and commodities minister Johari Ghani’s call for hefty fines to be imposed on companies and agents who bring in migrant workers without having jobs ready for them.
“Foreign workers are only allowed into the country based on (an) approved quota for (each) company, but some of the companies are selling (their) quotas.
“Insufficient regulatory frameworks or weak enforcement mechanisms may allow unscrupulous employers and intermediaries to exploit loopholes (and engage) in deceptive practices without facing adequate consequences,” he said in a Facebook post.
Shanmugam said those who exploit the system must be subjected to stiffer financial penalties which must be proportionate to the severity of the deception and the number of affected workers involved.
They must also be required by law to pay financial compensation to their victims, he said.
Shanmugam also called for several other punitive measures to be imposed on errant businesses, including the revocation or suspension of business licences and a ban on future recruitment.
He also proposed that the government maintain a public blacklist of errant employers.