6. LABOR: SUBSTANTIAL REFORMS REQUIRED

Immediate (within 2 years):
- Import ban on forced labor goods (may acknowledge US Section 307 determinations)
- Amend Trade Unions Act 1959 to allow migrant workers to hold union office
- Implement Industrial Relations Act regulations on sole bargaining rights
- Prohibit recruitment fee charging to workers
- Increase transparency on migrant worker quotas and MOUs

9. COMMERCIAL CONSIDERATIONS & STATE-OWNED ENTERPRISES

Malaysia must ensure SOEs:
- Act according to commercial considerations
- Don't discriminate against US goods/services
- Receive no non-commercial assistance (except for public service obligations)

Upon US request:
- Provide non-confidential information on subsidies to manufacturing enterprises
- Take action to address distortive impacts

Analysis:
- SOE constraints: Limits industrial policy tools (affects Petronas, TNB, Khazanah portfolio, etc.)
- Subsidy transparency: US gains insight into Malaysian industrial policy
- Policy space reduction: Cannot use SOEs for strategic development objectives as freely
- Competitiveness: May limit ability to support national champions