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
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