THE US State Department will downgrade Malaysia to the worst tier in its annual report on human trafficking, to be released later today, Reuters reports.

Sources who spoke on condition of anonymity was reported by the site as saying Malaysia will fall to Tier 3, after spending three years on the Tier 2 watchlist, in this year’s Trafficking in Persons report.

The State Department ranks countries in Tier 3 for failing to comply with the minimum standards for eliminating trafficking or make significant efforts to comply.

A Tier 3 ranking will likely affect Malaysia’s access to some US aid, the portal reported.

The demotion follows complaints by rights groups and US authorities over the alleged mistreatment of migrant workers in plantations and factories.

The Home Ministry did not immediately comment on the report.

Malaysia is home to some two million foreign workers, and many more who are not documented.

The site further reported that the country has more than 170,000 registered refugees and asylum-seekers, most of them Rohingya from Myanmar.

Three Malaysian companies – Top Glove Corp Bhd, Sime Darby Plantation and FGV Holdings – have been slapped with import bans by the United States over claims of forced labour in their operations.

In April, the glove maker said it was correcting forced labour practices at its factories.

Meanwhile, Sime Darby and FGV reportedly said they had appointed auditors to evaluate their practices and would engage with the Customs and Border Protection agency to address the concerns. – July 1, 2021.