Stakeholder Perception of Links between International Factor Flows and Labour Standards in Malaysia

Abstract

The paper identifies the dilution of key aspects of labour standards (collective labour rights and individual workers’ rights) and establishes their systematic links with the global integration of the Malaysian economy through capital and labour inflows. It then assesses the state of reforms in labour-related policies in aligning with international requirements. The approach taken in this paper is that investors and migrants, may, play a role of a “transmitters” of (lower) labour rights given the structural (development) dependence of Malaysia on the twin flows of labour and capital. For this purpose, the study employs qualitative analysis that consolidates information through interviews conducted with several stakeholders (trade unions, activist groups and non-governmental organisations).

Keywords: labour standards; workers’ rights; unskilled migrants; foreign direct investment; Malaysia

JEL Classification: F66, F68, F69, F23