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Malaysia Gets Two-Year Window to Tighten Forced Labour Laws Under US Trade Deal

Published July 25, 2026 at 8:32 AM UTC

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Malaysia has been given two years to tighten its laws against forced labour as part of commitments under a trade deal with the United States, a senior minister announced. The move aims to address persistent allegations of labour abuse in export industries such as palm oil and electronics. Johari, the Minister of Plantation and Commodities, said the timeline allows Malaysia to amend domestic regulations to meet US standards. The trade agreement, which includes labour rights provisions, is key to maintaining Malaysia's preferential tariff access under the US Generalized System of Preferences (GSP). Without compliance, Malaysia risked losing tariff benefits that support billions of dollars in exports. The two-year period is meant to give businesses time to adjust while the government strengthens enforcement. Labour groups have long pressed for reforms, citing reports of forced labour in glove manufacturing and palm oil plantations. The US has previously flagged concerns, including detention of workers and wage theft. Malaysia's export sectors, which employ millions of migrant workers, will be directly affected. Compliance could raise costs for some firms but also open new markets. Observers will watch whether Malaysia meets the deadline or faces trade penalties that could hurt its economy.