STRATEGIC FRAMEWORK ON A NATIONAL ACTION PLAN ON BUSINESS AND
HUMAN RIGHTS FOR MALAYSIA
both internationally recognised, and both have human rights chapters. However, the ISO 26000
provides only non-binding guidance and has no certification mechanism.
48. In addition, the OECD Guidelines apply to Malaysian companies that operate internationally,
and complaints may be brought to a Malaysian NCP for a Malaysian company’s overseas human
rights impacts. As mentioned above, overseas investment by Malaysian companies is increasing,
including in countries known for weak governance. Complaints have been made to overseas
grievance mechanisms regarding the domestic and overseas adverse human rights impacts of
Malaysian enterprises.49
49. Adhering to the OECD Guidelines will therefore have the advantages of (i) moving beyond voluntary
self-regulation to a more active approach to fostering corporate respect for human rights, and (ii)
providing a Malaysian mechanism for overseeing the domestic and overseas human rights impacts
of Malaysia’s multinational enterprises and addressing complaints regarding these impacts.
50. Recommendation: The Commission therefore recommends that the Government adhere to
the OECD Guidelines for Multinational Enterprises in order to more actively promote corporate
respect for human rights and to provide a non-judicial grievance mechanism for domestic and
overseas business-related human rights impacts.
Relevant Government bodies: MITI
Operational Principles
Guiding Principle 3
In meeting their duty to protect, States should:
(a) Enforce laws that are aimed at, or have the effect of, requiring business enterprises to
respect human rights, and periodically to assess the adequacy of such laws and address any
gaps;
(b) Ensure that other laws and policies governing the creation and ongoing operation of
business enterprises, such as corporate law, do not constrain but enable business respect for
human rights;
(c) Provide effective guidance to business enterprises on how to respect human rights
throughout their operations;
(d) Encourage, and where appropriate require, business enterprises to communicate how
they address their human rights impacts.
(3) Prioritise the strengthening of law enforcement capacity and anti-corruption measures
51. Challenges in law enforcement have reportedly caused or contributed to Malaysia’s business and
human rights issues. For example, in relation to the abuse of migrant workers, one apparent
contributing factor is the serious shortage of labour inspectors and insufficient number of labour
inspections conducted to ensure that businesses comply with safeguards in labour laws.50 As
another example, in relation to logging activities, findings by authorities that EIA reports were
not submitted when required indicate gaps in enforcement of EIA requirements.51 In addition,
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