MITI TO GIVE EXPLANATION ON ALLEGED EXCESS CAPACITY, FORCED LABOUR -- JOHARI

KUALA LUMPUR, March 13 (Bernama) -- Malaysia will give an explanation to the United States (US) regarding allegations of structural excess capacity and production as well as the use of forced labour, which are among issues under probe under Section 301(b) of the US’ Trade Act of 1974.

Investment, Trade, and Industry Minister (MITI) Datuk Seri Johari Abdul Ghani said even if Malaysia has excess production capacity, it does not mean that Malaysia is dumping the products exported to the US.

“Even if we have excess capacity, as long as we are not dumping, we can show our costs,” he told reporters after a casual dialogue session in Kampung Baru here tonight.

Johari said the matter can be clarified by comparing the product selling prices in the domestic market with the export prices.

“The prices in Malaysia can be compared with the prices of our exports. If the prices of goods here are the same as the prices of our export goods, it cannot be said that we are practicing dumping,” he said.

He said that dumping generally occurs when a product is sold cheaper in the export market than in the country of origin.

“For example, if the price in Malaysia is RM100 but we sell the product in another country for RM80 or RM90, that can create the perception that we are trying to undercut competitors in their market,” he added.

Johari made the remarks when commenting on the US, which on Wednesday began investigations into the acts, policies, and practices in 15 trade partners, including Malaysia and the European Union, under Section 301(b) concerning structural excess capacity and production in the manufacturing sector.

Most recently, the US, through US Trade Representative (USTR) Ambassador Jamieson Greer, on Thursday launched investigations into 60 economies under Section 301(b) of the Trade Act 1974, a section created, among other things, to address failures to take action against forced labour.

Among the 60 countries involved were major US trading partners, including seven ASEAN countries: Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

Commenting on the forced labour allegations, Johari said Malaysia has clear labour laws to ensure workers are protected and exploitation does not occur.

“Forced labour includes using workers without valid permits or workers being paid below the prescribed minimum wage,” he said.

According to him, the employment of underage workers is also not allowed under national law.

“The government has set a minimum wage. If a company pays below that rate, it is not allowed. Likewise, using underage workers is prohibited,” he said.

He added that compliance with labour laws and employment standards is important to ensure Malaysian products are not associated with forced labour issues in international trade.

-- BERNAMA