Malaysia faces two-year deadline to address forced labour concerns as US trade commitments take effect

Malaysia has two years to meet commitments under a US trade agreement aimed at eliminating forced labour from its supply chains, a move that could affect key exports such as palm oil and electronics. The deadline follows months of diplomatic talks and comes as new US tariffs on some Malaysian goods have kicked in, with exemptions for vegetable oils, beef, plants, wood, and circuit boards. The government has been urged by trade experts to diversify export markets to reduce reliance on the US, which remains a major trading partner. The forced labour commitments require Malaysia to strengthen labour laws, improve enforcement, and ensure workers' rights in industries like manufacturing and agriculture. Failure to comply could lead to stricter trade measures, including broader tariffs or import bans. The Ministry of International Trade and Industry has said it is working with stakeholders to address the issues, but civil society groups have raised concerns about slow progress and lack of transparency. The new tariffs, part of a broader US review of trade practices, also include exemptions for some products, signalling a selective approach by Washington. For Malaysian businesses, the next two years will be critical in adapting to shifting trade rules and labour expectations.