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Links Between International Factor Flows and Labor Standards in Malaysia: Findings from a Stakeholder Survey

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  • Evelyn S. Devadason

    (University of Malaya, Kuala Lumpur)

Abstract

This article identifies the dilution of key aspects of labor standards and establishes their systematic links with the global integration of the Malaysian economy through capital and labor inflows. The approach taken in this article is that investors and migrants, may, serve as channels of (lower) labor rights. For this purpose, the study consolidates information through interviews conducted with trade unions, activist groups and non-governmental organizations. The findings suggest that migrants have influenced and lowered the labor rights for the unskilled group. Since migrants have little information about their rights, they are directed into the secondary labor market with insecure and exploitative jobs. They have therefore become a preferred source of employment, “naturally†relegating the unskilled locals into contractual jobs with minimal to no work entitlements.

Suggested Citation

  • Evelyn S. Devadason, 2020. "Links Between International Factor Flows and Labor Standards in Malaysia: Findings from a Stakeholder Survey," Journal of Developing Societies, , vol. 36(1), pages 95-117, March.
    • Handle: RePEc:sae:jodeso:v:36:y:2020:i:1:p:95-117
    DOI: 10.1177/0169796X20907447
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    References listed on IDEAS

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    1. Evelyn S. Devadason & Thirunaukarasu Subramaniam, 2016. "International capital inflows and labour immigration," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 43(12), pages 1420-1438, December.
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    4. Beata Smarzynska Javorcik & Mariana Spatareanu, 2005. "Do Foreign Investors Care about Labor Market Regulations?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(3), pages 375-403, October.
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