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Malaysia is a destination and, to a much lesser extent, source and transit country for men, women, and children subjected to forced labor and women and a small number of children subjected to sex trafficking.The majority of trafficking victims are among the estimated two million documented and an even greater number of undocumented migrant laborers in Malaysia.In an effort to allow victims to move freely and work outside government facilities, the government collaborated with an international hotel chain to identify employment opportunities, advertised the positions to more than 100 trafficking victims, issued work permits to four trafficking victims, and arranged medical screenings as part of the work permit approval process for an additional five victims during the year.However, two of the first four workers subsequently left their jobs, and many victims declined to participate in the program, citing a desire to return home instead.Government regulations placed the burden of paying some immigration and employment authorization fees on foreign workers; this practice makes workers more susceptible to debt bondage.Authorities report organized crime syndicates are responsible for some instances of trafficking.Many refugees incur large smuggling debts, which traffickers use to subject some refugees to debt bondage.Children from refugee communities in Peninsular Malaysia are reportedly subjected to forced begging.

Some migrant workers on palm oil and agricultural plantations, at construction sites, in the electronics industry, and in homes as domestic workers are subjected to practices that can indicate forced labor, such as passport retention—both authorized and unauthorized—and contract violations, restricted movement, wage fraud, and imposition of significant debts by recruitment agents or employers.In July 2015, Parliament passed amendments to the existing anti-trafficking law to reform its victim protection system; these amendments legally came into force in November.The government co-chaired, with an internationally recognized trafficking expert, a consultation session with civil society stakeholders to develop implementing regulations for the amendments, focusing on legal changes allowing trafficking victims to live and work outside of government facilities; it then hosted two subsequent consultation sessions with civil society.Malaysia initiated fewer trafficking investigations and prosecutions compared to last year, but increased convictions from three to seven.Sentences for convicted traffickers varied, but some were insufficiently stringent.

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Foreign workers—primarily from Indonesia, Bangladesh, the Philippines, Nepal, India, Burma, and other Southeast Asian countries—typically migrate voluntarily to Malaysia to pursue better economic opportunities.

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