KUALA LUMPUR (June 4): Malaysia said it is actively working to address a legal gap raised in the US investigations into purported forced labour, the trade ministry said on Thursday.
The US Trade Representative office found that Malaysia does not yet have a specific law to screen and ban goods and raw materials entering Malaysia from third countries with forced labour content, the Ministry of Investment, Trade and Industry (Miti) said in a statement on Thursday.
“This finding does not mean Malaysia practises forced labour and is not a reflection of the labour conditions in Malaysia,” Miti said.
The statement comes after the US Trade Representative published its findings on Section 301 investigations on forced labour against Malaysia and proposed a 10% tariff on Malaysian goods.
The proposal is currently subject to a public consultation process, and a final decision is expected in late July 2026, around the time the temporary tariff under the Section 122 Trade Act 1974 expires on July 24, 2026.
“Malaysia will continue to engage US actively throughout this process, including at the hearings, to present our case and protect Malaysian trade interests,” Miti said.
Malaysia “rigorously” enforces its comprehensive domestic legal framework prohibiting forced labour, including the Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act 2007 and the Employment Act 1955, the ministry stressed.
Miti also reiterated that Malaysia does not have excess industrial capacity that distorts or disrupts global markets in response to another earlier investigation.
“Malaysia’s industrial output reflects genuine demand,” Miti said, adding that the government has submitted “detailed evidence to this effect and will defend this position” though the US has yet to provide an update on the investigation.
The probe into Malaysia was launched in March over alleged excess manufacturing capacity in the electronics, machinery and steel sectors as part of the Trump administration’s effort to reinstate tariffs struck down by the US Supreme Court.