NEARLY a third of some 350,000 workers in Malaysia’s electronics industry — a crucial link in the international consumer supply chain — suffer from conditions of modern-day slavery such as debt bondage, according to a study funded by the U.S. Department of Labor.

    The survey by Verite, an international labor rights group, found that abuse of workers’ rights — particularly the tens of thousands from low-wage countries like Nepal and Indonesia — was rife in a US$75 billion sector that is a mainstay of the Southeast Asian country’s export-driven economy.

    Several U.S., European, Japanese and South Korean multinationals have operations in Malaysia, including Samsung Electronics Co., Sony Corp., Advanced Micro Devices, Intel, and Bosch Ltd.

    Some big brands use suppliers such as Flextronics, Venture Corp., Jabil Circuit, and JCY International to make parts for smartphones, computers and printers.

    The U.S. government funding adds credibility to a report that is likely to come as a surprise to many consumers.

    Verite did not single out any companies in its report, released yesterday, but blamed a system in which government and industry policies have given Malaysian recruitment firms increasing control over workers’ pay and other conditions.

    “These results suggest that forced labor is present in the Malaysian electronics industry in more than isolated incidents, and can indeed be characterized as widespread,” the group said.

    Several U.S. companies with operations in Malaysia told Reuters they could not comment until seeing the full report. (SD-Agencies)