KUALA LUMPUR: All companies, including American Malaysian Chamber of Commerce (AmCham Malaysia) member firms, must take full responsibility for eliminating forced labour from their supply chains amid scrutiny by the United States under Section 301 investigations and proposed tariffs linked to forced labour risks.
AmCham CEO Datuk Siobhan Das said that accountability ultimately lies with businesses, which must be fully aware of what is happening across their supply chains.
“You wouldn’t want to buy a product if you knew someone was being forced to work to produce it. As a consumer, if you wouldn’t buy that product, then companies must ensure they are checking their supply chains to make sure that is not the case,“ she told reporters on the sidelines of AmCham Malaysia’s 49th annual general meeting luncheon today.
Siobhan emphasised that forced labour is not confined to Malaysia but is a global issue affecting industries and supply chains across all geographies.
“Every company, not just Malaysian, American, Japanese or Indian firms, but any company anywhere, must be conscious and responsible for what is happening in its supply chain,“ she said.
Siobhan said businesses must establish robust mechanisms to detect and prevent forced labour in their supply chains, ensuring their operations remain ethical and compliant with global standards. “As consumers, whether we are buying furniture, clothes or any product, we want to know how it is made. Supply chains are people, it’s simple. This is about human rights and human dignity.”
Siobhan said while the issue may seem obvious, it requires active and continuous attention from both companies and consumers. “It should not just be a ‘no-brainer’.
We need to think very actively about how products are made and how we respond to that. As consumers, we are the ultimate decision-makers; we have the power.”
She noted that increasing global regulations, including recent unilateral measures by the United States, are prompting greater scrutiny of supply chains.
Siobhan’s comments come as the US is reviewing Malaysia under its Section 301 trade investigation framework, which covers areas including forced labour, excess capacity, state subsidies and environmental practices.
While acknowledging that tariffs and geopolitical tensions continue to pose challenges, Siobhan stressed that these are not unique to Malaysia but reflect broader global pressures affecting all economies.
“This is not a Malaysian problem; it is a global problem. Everybody should be concerned and pay attention, but we should continue working towards a better future for Malaysia,“ she said.
Malaysia’s strong export base and continued openness to global markets will be critical in sustaining growth amid these headwinds, she added.
“Tariffs are tariffs; everyone in the world is facing them. What matters is that we continue producing quality products, remain innovative and stay open to investment from any country,“ Siobhan said.
Malaysia remains well-positioned to capture opportunities arising from shifting global trade dynamics, regardless of whether demand comes from the United States or other markets, she said.
“Malaysia is sitting on an opportunity to be a very strong player in the global commercial landscape. It’s up to Malaysia to take that opportunity,“ she added.
Siobhan said such global regulatory moves ultimately push companies and consumers to be more conscious. “Every country has a right to say it does not want to support industries linked to forced labour. At an individual level, it is the same decision, would you support it?”.
She said the extent of the new trade measures’ impact on industries will be determined by how ethical, transparent, and well-managed their supply chains are.
“If your industry and supply chain are clean, then the answer is no; it should not affect you. But if they are not, then the question is whether you should be in business at all.”
While global conditions are becoming more difficult due to tariffs and geopolitical tensions, Malaysia and the US continue to maintain stable and resilient economic ties, Siobhan said.
“As far as I’m concerned, the relationship and cooperation are in a good place. The outlook is very bright for Malaysia. There is a very strong relationship; we just have to continue building on what we have been doing for the past 50 years,“ she added.
Siobhan said there is strong potential to expand cooperation, particularly by transferring advanced technologies to Malaysia while building a more skilled local workforce to support long-term growth. “We need to continue building, making sure that we are bringing the best technology we can, training Malaysians and incorporating them into the ecosystem so they become global players.”
She highlighted that Malaysia’s strategy under the New Industrial Master Plan 2020 (NIMP 2030) matches well with where American companies are investing and doing business.
“All the industries Malaysia is supporting under NIMP are our shining stars. There is no mismatch; American companies are already in all of them. This is a good plan, and we are here to support it,“ Siobhan said.
She added that Malaysia’s attractiveness lies in its strong fundamentals, including institutions and rule of law, which position it as one of the most competitive investment destinations in the region.
“Malaysia has everything it needs to build. It’s up to Malaysians to choose to build and to believe that they can,“ Siobhan said.
