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PETALING JAYA: The Malaysian Human Rights Commission (Suhakam) has urged government agencies to pay more attention to the rights of migrant workers, after the United States cut ties with FGV Holdings Bhd following complaints of forced labor.
The U.S. Customs and Border Protection agency banned palm oil imports from FGV last Wednesday after alleged findings of forced labor.
Suhakam Commissioner Jerald Joseph said the human rights institution has launched investigations into the allegations, including visits to FGV’s vast plantations in Sabah and several others on the Peninsula.
“During our visits, we had generic human rights problems of migrant workers such as passport problems. But I think those problems have been solved. The biggest problem is getting the plantation sector to meet the minimum wage, ”he told the Sun yesterday.
Joseph explained that migrant workers are paid based on the amount of oil palm fruit they collect, and they have to break their backs working towards their set goals.
In August, FGV had 11,286 Indonesian workers and 4,683 Indians who make up the majority of its workforce on plantations.
Economist Dr. K. Kuperan Viswanathan agreed with Joseph, noting that developing countries like Malaysia are notorious for paying lower wages and not providing adequate benefits.
“Even China has been accused of doing this. This is how they have been able to enter the commercial market, it is because their production cost is lower ”, she said.
For now, Kuperan said FGV’s other options are to file a case with the World Trade Organization and seek business in other regions.
In a statement last Thursday, FGV said it was “disappointed” with the US decision.
“FGV has been taking concrete steps over the last few years to demonstrate its commitment to respect human rights and uphold labor standards, including paying official costs associated with hiring migrant workers, which include airfare, permit costs, work, visas, check-ups and insurance ”.
FGV said it does not retain the passports of its workers.
Malaysia is one of the largest palm oil exporters, accounting for 28% of world palm oil production and 33% of world exports.
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