STRATEGIC FRAMEWORK ON A NATIONAL ACTION PLAN ON BUSINESS AND
HUMAN RIGHTS FOR MALAYSIA
aspects of its interactions with businesses.
88. Recommendation: The Commission therefore recommends that the Government ensure that
all Government departments at the federal and state levels are equipped to act in a manner
compatible with the Government’s international human rights obligations when regulating and
interacting with businesses. This could be done through workshops and training on the Guiding
Principles and business and human rights, and ensuring effective knowledge management within
Government departments. The NAP process should be used to increase cross-governmental
awareness of the Guiding Principles and the range of ways in which the Government can fulfill its
duty to protect against business-related human rights abuses.
Relevant Government bodies include: Prime Minister’s Department and related Government
agencies at both federal and state levels.
Guiding Principle 9
States should maintain adequate domestic policy space to meet their human rights obligations
when pursuing business-related policy objectives with other States or business enterprises, for
instance through investment treaties or contracts.
(13)
Ensure that Malaysia’s investment and trade agreements do not have adverse impacts on
human rights
89. The Commission welcomes MITI’s engagement with the Commission on the potential human
rights impacts of the proposed TPP Agreement. The Commission notes that State obligations
under trade and investment agreements may result in restrictions on or requirements affecting a
State’s exercise of its domestic regulatory powers. For example, a State’s obligations to provide
patent protection under the WTO Agreement on Trade-Related aspects of Intellectual Property
Rights may have an adverse impact on human rights, by, for example, limiting affordable access
to medicines.89 Also, investors have used States’ obligations to provide investor protections
under international investment agreements and investor-State contracts to sue States for taking
regulatory measures that may be regarded as necessary for the fulfilment of human rights, such
as affirmative action measures in favour of historically disadvantaged citizens,90 emergency fiscal
measures to ensure affordable access to public utilities,91 and bans on the sale and use of certain
harmful chemicals on public health grounds.92
90. As States cannot ignore their human rights obligations in the conclusion of trade or investment
agreements, it is important to ensure that Malaysia’s trade and investment agreements do not
have adverse human rights impacts. Various proposals have been put forward for how States
should do so, such as conducting prior human rights impact assessments on trade and investment
agreements,93 ensuring that stabilisation clauses in investment agreements do not constrain a
government’s policy space to implement legislation to improve corporate respect for human
rights,94 and using guidance supported by the former UN Special Representative on business
and human rights on how State-investor contract negotiators can integrate human rights risk
management into their negotiations.95
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