KUALA LUMPUR – The government of Malaysia has amended four key industrial relations laws, signalling its commitment to fair labour practices and trade partnership across the Pacific.

The decision aligns with the Labour Chapter of the popular trade agreement CPTPP or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, whose member economies comprise 13.4% of global GDP.

“The CPTPP requires all member countries to adopt and maintain in their laws, regulations, and practices related to the rights outlined in the International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work,” said Datuk Azman Mohd Yusof, secretary-general of Malaysia’s HR Ministry.

Also Read: Malaysia vows to enhance labour practices

Adhering to international standards

“The government strives to address the country’s labour issues in the best possible way so that all stakeholders, employers and workers get the necessary benefits,” Azman said.

The newly amended laws include:

• Industrial Relations (Amendment) Act 2020
• Trade Unions (Amendment) Act 2024
• Industrial Relations Regulations 2024
• Trade Union Regulations 2024

A total of 13 provisions under the Industrial Relations Act 2020, as well as three related amendments, were enforced on 15 September, the official said.

These crucial changes aim to raise Malaysia’s labour standards and set them on par with international principles, such as workers’ ability to engage in collective negotiation and their freedom to join labour associations.

Speaking of workers’ unions, Azman commended the efforts of trade unions in advancing the welfare of workers.

“All trade unions should practise the 'Stronger Together' approach to protect the interests of members. All trade union members should move towards the same goals and strengthen their commitment to the union's objectives,” he said.

Also Read: Malaysia launches national HR policy framework

Improving labour standards in Malaysia

At the International Labour Conference back in June, Malaysia reiterated its commitment to enhancing labour standards by aligning them with practices of the global community.

HR Minister Steven Sim, who attended the event, spoke to representatives of international labour and employers’ groups and “emphasised the economic dimensions of labour standards,” People Matters Global reported.

The meetings signified Malaysia’s views on integrating global perspectives into its labour policies to improve the socio-economic welfare of its citizens.

Apart from participation in global discussions on labour standards, Malaysia has also introduced a national framework for HR policies across the country. The framework serves as a guide for addressing critical issues regarding workforce and HR management.

An important component of the framework is Malaysia’s Progressive Wage Policy, which outlines the government’s plan to increase the median wage of workers. This is in addition to the pay increase for civil servants announced in early May.