Malaysia keeps Tier 2 ranking in US human trafficking report

Malaysia maintained its Tier 2 ranking in the US Trafficking in Persons (TIP) report for a third consecutive year after the US state department said it does not fully meet the minimum standards to eliminate trafficking but is making significant efforts to do so.

The report noted more investigations, prosecutions and convictions over the past year, but said corruption, weak regulation of labour recruiters and inconsistent victim identification continued to undermine progress.

“Corruption and official complicity in trafficking crimes remain significant concerns, inhibiting law enforcement action,” it said.

“Officials continue to conflate human trafficking with migrant smuggling, undermining victim identification efforts.”

It said the government did not effectively regulate labour recruiters, including those who charged workers recruitment fees that facilitated debt-based coercion and vulnerability to forced labour.

The report also said the government did not hold labour recruiters liable for fraudulent recruitment, and no employment agencies were prosecuted under the Private Employment Agency Act.

The law caps fees charged to foreign workers at one month’s basic wages, but most migrant workers reportedly paid well above the limit, exposing them to debt-based coercion.

Some Bangladeshi workers reportedly paid up to about US$7,200 (nearly RM30,000) before arriving, said the report.

The report also noted an increase in trafficking investigations opened by authorities – 209, up from 188 the previous year.

The Attorney-General’s Chambers began prosecuting 128 suspects (24 for sex trafficking, 99 for forced labour and five for unspecified exploitation), up from 72. Courts meanwhile convicted 36 traffickers compared with 26 previously.

The report cited an estimate that 29% of domestic workers, mostly foreign, experience conditions consistent with forced labour.

It also cited the Human Rights Commission of Malaysia’s estimate that about eight in every 1,000 palm oil plantation workers are in forced labour, with a higher rate in Sarawak.

There was some positive news on labour rights as labour courts resolved 28,992 disputes, up from 21,583, and ordered RM70 million in back wages, up from RM52 million.

The report outlined eight recommendations for Malaysia to implement during the next assessment period, from April 1, 2026, to March 31, 2027.

They include improving the early identification of trafficking victims, strengthening investigations, eliminating recruitment fees charged to workers and expanding partnerships with NGOs.

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