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New Maplecroft reports provide in-depth analysis of key risks in Malaysia and labour standards in Qatar

24/08/2011

Qatar

The Labour Standards Report on Qatar offers in-depth analysis, maps and country scores for all major labour issues, as well as key recent events and stakeholder viewpoints.

Qatar is ranked as a ‘high risk’ country on Maplecroft’s 2011 Labour Rights and Protection Index. Key areas of concern relate to migrant workers, which constitute approximately 90% of the country’s workforce. Migrant workers, the majority of which come from South and South East Asia, are commonly discriminated against by Qatari employers and often suffer severe forms of labour exploitation. They frequently work for minimal wages in substandard working conditions and have no viable access to legal remedies for violations of their labour contracts. Given the sponsorship system requires them to get permission from their employers before they can leave the country, they have little alternative but to accept their conditions of work.

Consequently, companies investing in Qatar, particularly in labour intensive industries such as construction, remain at high risk of association with labour exploitation of migrant workers. As the labour rights situation in Qatar has come under heightened scrutiny over the last years, particularly after the country was awarded the 2022 Football World Cup, companies need to be proactive in ensuring the human rights of their workers are respected. Companies allegedly involved in unethical labour exploitation risk considerable reputational damage, as experienced by multinational companies investing in Qatar in the past.

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Malaysia

Maplecroft's in-depth Country Risk Report on Malaysia has a focus on the energy sector, but is also pertinent to other industries. It offers high-level analysis and maps of the governance framework, the regulatory and business environment, political violence, human rights, the environment and climate change, plus an overview of the macroeconomic environment.

Malaysia’s political parties on the federal and state levels are divided along ethnic and religious lines. Companies should avoid becoming associated with a particular section of society at the expense of others and therefore appearing to express political preferences. It is also advisable to be clear on whether potential clients, suppliers or partners are companies closely associated with the government. There has been a recent backlash against such political polarisation, with the past few years having seen a historic erosion of voter support for the ruling coalition and large opposition rallies calling for amendments to the voting system to discourage bias. Regulatory instability is therefore a real risk if the current trend of increasing support for opposition parties continues.

Businesses active in Malaysian waters should be aware that pirate activity in the region is evolving and the associated risks are increasing. In particular, companies with oil and gas operations should recognise the heightened dangers posed to their installations, as better-organised and more ambitious pirates may attempt to attack oil rigs in the South China Sea and Straits of Malacca. In July 2011, the International Maritime Bureau (IMB) released a piracy warning relating to the waters of the South China Sea bordering Indonesia, Malaysia and Singapore. It follows a series of hijackings throughout May and June 2011, which led to the seizure of three tugboats and a barge by pirates.

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In-depth country risk reports and labour standards reports are available for all countries and sectors. Register for trial access to see examples.