STRATEGIC FRAMEWORK ON A NATIONAL ACTION PLAN ON BUSINESS AND HUMAN RIGHTS FOR MALAYSIA 75. The relevant State-linked agencies should consider benchmarking their safeguard policies against international standards such as the IFC Performance Standards and the Equator Principles. In that regard, the updated OECD “Common Approaches” relating to States’ export credit agencies requests member States to benchmark their due diligence against either the World Bank Safeguard Policies or the IFC Performance Standards.75 76. Recommendation: The Commission therefore recommends that the Government study ways in which its State-linked agencies can ensure respect for human rights in the business activities they support, and adopt effective regulatory measures to do so. Relevant bodies include: State-linked agencies, such as Bank Negara Malaysia Guiding Principle 5 States should exercise adequate oversight in order to meet their international human rights obligations when they contract with, or legislate for, business enterprises to provide services that may impact upon the enjoyment of human rights. (9) Ensure that private enterprises and public-private partnerships (PPPs) that deliver public services respect human rights in their operations 77. Many public services, such as healthcare, education and public utilities like water and energy, can have direct impacts on the human rights of service users. Examples of human rights abuses arising from the privatisation of public services in other countries are reportedly very prevalent in relation to issues such as water and health.76 Notably, participants at the Commission’s roundtable discussions on human rights expressed concern over whether the Government and businesses are taking adequate responsibility for protecting human rights in the private delivery of such public services. 78. Recommendation: The Commission therefore recommends that the Government study the human rights risks and impacts of the delivery of public services by private enterprises and PPPs, and adopt effective regulatory measures to address these risks and impacts. The Government should consider using human rights due diligence, including human rights impact assessments, in privatisation and the private delivery of public services. Guiding Principle 6 States should promote respect for human rights by business enterprises with which they conduct commercial transactions. (10) Ensure respect for human rights in public procurement at the federal and state levels 79. The Government is an important consumer of goods and services. Public procurement gives the Government significant economic leverage in relation to business activities. Indeed, the Government Green Procurement recognises the importance of public procurement as a driver of 25

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