In Malaysia many businesses exploit migrant workers worked in factory. http://www.state.gov/j/tip/rls/tiprpt/2011/164232.htm http://www.amnesty.org/en/library/asset/ASA28/002/2010/en/114eba25-6af5-4975-9ea302c22f6bdc5a/asa280022010en.

pdf According to Amnesty International, Migrant workers come to Malaysia to escape poverty and to provide for their families. Once they have arrived, many workers toil in conditions that amount to labour exploitation. They may not be paid for months of work or may take home little or no money each month after paying their employers the monthly charge for their work permit renewal and other costs. Most work long hours, including extra hours which are not paid. The reason of Malaysian businesses exploit migrant workers especially in factories is mainly due to profit factor. According to United Nations (2012), traffickers and employers leverage their power over the victims to force them to execute certain tasks in harsh conditions that the victims are left with no choice in order to gain the most possible value and profit from the victims. According to the International Labor Organizations Forced Labor Convention in 1930, forced labor has been defined as all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily. According to Sakisaka, I. (1967), the phenomenon of exploitation of labor in businesses rooted from the increasing capitalism of the society. Under the context of capitalism, labor-power is commodified and thus sold according to its value. Capitalists come into possession of the labor-power through the process of circulation to meet their needs. As capitalists or employers try to obtain the maximum utility of the commodified labor-power, issues of exploitation arose. The reason of exploitation of labor in Malaysian businesses is because of the supply and demand factor. There is a large quantity of unskilled labour in a source community such as Bangladesh, Indonesia, Vietnam and people are willing to migrate in search of economic opportunities. Often due to their relative wealth, residents in a destination community dont want to do jobs that are dirty and degrading. This created a demand for the labour from poorer source countries to handle these tasks. This inflow of foreign labor created a surplus in supply within domestic economy. According to Marxist theory, capitalists and employers are likely to exploit the surplus-labor that forms surplus-value. According to The Star publication (2012), there are no specific laws or public policies on dealing with employers who exploit workers in Malaysia. This indifference attitude from the responsible authority has fueled the growth of migrant worker exploitation in Malaysian businesses. According to Malaysian Bar Council (2012), in 2009, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah announced that the Cabinet had decided that foreign workers were to pay their levy charges, adding that this was to lower employers cost in hiring such workers. This decision in turn had encouraged employers to replace more local workers with foreigners, which in turn lead to increased cases of exploitation because cost of hiring additional foreign worker now is reduced which means employers now had a lesser responsibility to undertake. Besides, according to Malaysia Bar Council, the issue on the policy of hiring foreign workers is that local employing agencies can sign contracts on behalf of the migrant worker with the employer. This problem can be seen through the cases of Chin Well and Fudex, where the court held that the contract between migrant worker and employer exists because the agency has signed on behalf of these workers.

Therefore, the employer was entitled to all stated benefits in the contract. The court had fueled the growth of migrant factory worker exploitation in an indirect way.

1. Profit http://www.unodc.org/documents/data-and-analysis/glotip/Trafficking_in_Persons_2012_web.pdf

Trafficking in persons happens mostly because of money as some human beings exploit others in order to gain profits. The traffickers leverage their power over the victims to force them to carry out certain tasks in conditions that the victims would not accept if they were free to decide.With respect to category (b), forced labour has been defined as .14 Slavery is defined in article 1 of the Slavery Convention of 1926,15as the status or condition of a person over whom any or all of the powers attaching to the right of ownership are exercised. There is no internationally agreed definition of servitude, but the term is generally used to describe a condition of serfdom, without implying an element of ownership of the victim as the term slavery does. http://www.marxists.org/subject/japan/sakisaka/exploitation.htm

Capitalism represents an historical era in which commodity production spans the entirety of society. Human labor-power is commodified. As a commodity, labor-power also has value. And a wage is received that is the price of this commodity. Because surplus-labor is exploited in the form of commodity production, surplus-labor takes the form of surplus-value. Capitalism is highly developed commodity production so the exploitation of surplus-labor likewise represents an extremely complex issue. Under capitalism, however, things are different. Labor-power is commodified and thus sold according to its value. The means of production are also purchased and owned by the capitalist class. Capitalists come into possession of the means of production and labor-power through the process of circulation, as well as the resulting products that likewise flow back to them via the circulation process to meet their needs. Even if everything is bought and sold at its value, capitalists are able to obtain the surplus-labor that forms surplus-value.

2. The reason many businesses in Malaysia exploits migrant factory workers is the supply and demand forces. The forces of supply and demand also fuel exploitative labour when: There is a large quantity of unskilled labour in a source community and people are willing to migrate in search of economic opportunities.

Often due to their relative wealth, residents in a destination community dont want to do jobs that are dirty, degrading and dangerous. This leads to a labour shortage in the destination community, creating a demand for the labour of people from poorer source communities. http://thestar.com.my/metro/story.asp?file=/2013/3/8/central/12795353&sec=central As Malaysia moves inexorably towards high-income nation status, more and more of its citizens are seeking jobs within a comfortable salary scale. More of us no longer want menial, labourers jobs, and these are left to the migrant workers. http://www.humantrafficking.org/countries/malaysia 3. no specific and strict law or public policy on dealing with employers who exploit workers http://thestar.com.my/news/story.asp?file=/2012/5/8/nation/11246712&sec=nation - Malaysia has no legal framework or a particular law to protect workers -Too many migrant workers have become undocumented and developed troubles with authorities since their passports are withheld by their employers or sponsors. The Indonesian government should not resume sending workers to Malaysia until the government and employers change their mindsets and make a particular law to protect them and their rights. http://www.malaysianbar.org.my/legal/general_news/tenaganita_levy_leads_to_further_exploitation.html -In 2009, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah announced that the Cabinet had decided that foreign workers were to pay their levy charges, adding that this was to lower employers cost in hiring such workers. - this decision will encourage employers to replace more local workers with foreigners, which in turn lead to an increased cases of exploitation.

Our country has the codified Contracts Act 1950 firmly in place, efficiently dispensed with by our courts. So the problem is not one of inadequacy of our codified contract law. It is the problem of enforcement which prevents more such actions from reaching the courts. For the Chin Well and Fudex case, the employer's rationalization for his breach of contract was that the contract was a 'mere formality'. The court held that 'that notwithstanding the fact that the Plaintiffs had not signed the agreement, the very fact that they came on the representation made by the Defendant's agent and the fact that the Defendant's Managing Director himself had signed the contract of employment, are sufficient grounds to hold that there indeed was a contract between the Plaintiffs and the Defendant'. The Court also held that the Plaintiffs are entitled to all the benefits stated in the contract document.

The likely planners of this unholy scheme would be the unscrupulous local middleman and the foreign agent on the prowl for ludicrous commissions. Such persons may even be part of an international gang of traffickers of illegal immigrants. The court had fueled the growth of migrant factory worker exploitation in an indirect way.