IKEA Malaysia has cut ties with one of its labour suppliers after the agency was found to have charged Nepali migrant workers fees to secure employment, in breach of the furniture maker’s policy.

A report by the Financial Times revealed that security guards had paid up to US$1,000 (RM4,470) for their posts.

The Ikea internal investigation confirmed “many of the security guards working in our Malaysia business had paid recruitment fees”, in violation of its code of conduct.

The migrant worker spotlight once again falls on Malaysia, following a run-in with US authorities over accusations of forced labour.

The disagreement led to a US ban on the import of rubber products from at least five major Malaysian suppliers.

The ban lasted nearly two years, with both sides finally coming to an agreement in February 2023.

Regionally, Putrajaya’s fractious relationship with Jakarta over migrant labour is ongoing.

The two governments continue negotiations over worker rights, pay and conditions, while Malaysia’s manufacturing and service sectors repeatedly press Putrajaya to resolve the issue quickly.

Meanwhile, during the past week, Human Resources Minister V. Sivakumar has become embroiled in a major migrant worker recruitment scandal.

The Malaysian Anti-Corruption Commission arrested the minister’s private secretary and two other officials over recruitment of migrant workers.

Yesterday, Sivakumar gave a statement to the MACC and was forced to suspend the three suspects with immediate effect. – April 17, 2023.