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331 BLS Report 2
714
42L2.27 g Laber & Industrial Relation 274

LABOR
LAW AND PRACTICE IN

MALAYSIA and SINGAPORE

UNIVERSITY OF ILLINOIS -URBANA

3 0112 101926597
UNITED STATES DEPARTMENT OF LABOR
W. Willard Wirtz, Secretary THE LIBRARY OF THE
BUREAU OF LABOR STATISTICS
MAA JAN 1S 1966
Ewan Clague , Commissioner
go
UNIVERSTY DE ILLINOIS
 Preface

This report is one of a series being prepared in the Bureau of Labor Statistics.
The series is intended to provide background material for U.S. business, trade
union and labor specialists, students, and Americans who may be employing local
workers in foreign countries. It is hoped that the series will also be useful to
persons concerned in more general ways with labor in foreign countries.
Source material used in preparing this study included Foreign Service reports ,
publications of the National Government of Malaysia and the State Governments
of Singapore, Sabah, and Sarawak, other printed sources, and personal observa
tions of the author. The research was completed in 1964.
The report was prepared by Michael B. Zuzik and reviewed by Harriet Micocci,
under the supervision of Juliet F. Kidney in the Bureau's Division of Foreign
Labor Conditions, William C. Shelton, Chief.

August 1965

Note : As this study went to press, Singapore withdrew as a

component State in Malaysia's political structure. However,
insofar as labor law and practice are concerned in both countries,
it may be assumed that the information contained in this study
remains valid , with some exceptions. Several changes in labor
legislation affecting industrial relations and labor organizations,
which occurred after completion of this report, are noted in
appendix J. The chapter on industrial relations and the section
on labor organizations, except for Singapore, must be viewed in
light of the new legislation.

For sale by the Superintendent of Documents, U.S. Government Printing Office,

Washington, D.C. , 20402. Price .55 cents.

i
 Contents
Page
Part I. The country and its workers . 1
Chapter I. Geographic setting- 1
Location and area . 1
Geographic factors and climate . 2

Chapter II . Political and economic background . 3

Political summary 3
Governmental structure .. 3
The national economy 7
Chapter III . The people and their culture .. 10
Ethnic groups . 10
Language- 11
Religious Groups - 12
Minority group problems. 13
Social structure and culture patterns - 14
Chapter IV . Education and health . 15
Education .. 15
Housing, health, and sanitation . 19
Chapter V. Manpower resources . 21
Population and labor supply --- 21
Special characteristics of the work force . 25
National service system . 26
Part II . Government and labor 27
Chapter VI. Government... 27
Public administration .. 27
Administrative bodies concerned with labor . 28
33
Participation in international organizations .
Chapter VII. Legislation affecting labor . 35
Constitutional guarantees - 35

Summary of basic labor legislation . 35

Enforcement .- 36
Part III. Labor and management 37

Chapter VIII . Labor and management organizations 37

Labor organizations.- 37
Management organizations . 41
International ties ... 44
Chapter IX. Industrial relations . 44
Collective bargaining 44
Settlement of disputes- 48
Relations in nonunion enterprises 54

Part IV. Conditions of employment.- 55

Chapter X. Employment practices 55
i

Records and reports --- 55

Preemployment inquiries - 57
Hiring --- 57

Notice periods and separations. 60

Disciplinary actions.. 62
62
Chapter XI . Hours of work and premiums .
Hours of work .- 62
63
Nightwork .---
Overtime premium 64

Paid leave.. 64

Periodic rest day premium 66

67
Holiday premium ..

ü
 Contents — Continued
Page

Part IV. Conditions of Employment-Continued.

Chapter XII. Wages and supplemental payments 68
Base pay 68
Supplemental payments . 73
Withholdings and deductions . 73

Pay changes 74
Pay period frequency 75
Travel and transportation expenses . 75
Chapter XIII . Health , safety, and workmen's compensation . 76
Health and sanitation . 76
Safety conditions and required precautions 77
Accident and disease compensation .. 78
Chapter XIV . Social insurance . 80

Government systems of insurance . 80

Private insurance and retirement systems . 82

Appendixes :
A. Principal labor laws of Malaysia, 1964.- 85

B. Mainland Malaysia: Federations of trade unions and their affiliates, December

1963.- . 87

C. Mainland Malaysian trade unions with membership exceeding 2,000, December

1963 . 89

D. Singapore: Registered trade unions, September 1964 . 90

E. Sarawak : Registered trade unions , October 1964 . 92

F. Sabah : Registered trade unions, October 1964 . 93

G. Mainland Malaysia: Employers' organizations, August 1964 . 94

H. Singapore: Employers' organizations, August 1964.- 95
I. Sarawak : Rates of pay by industry in nongovernment establishments, January
1963 ... 96
J. Changes in labor legislation affecting industrial relations and trade unions
in Malaysia ... 98

Sources of information on Malaysia and Singapore. 99

Tables :
8
1. Foreign exchange earnings of Malaysian States, by principal sector, 1961 .--
2. Malaysian imports, by main commodity groups, 1962.- 9
3. Estimated population of Malaysian States, by ethnic group, 1961 .-- 11
4. Peninsular Malaysia : Number of primary and secondary schools and enroll
ment, January 1963.-- 16
5. Singapore : Enrollment in primary and secondary schools, January 1963 16

6. Sarawak : Enrollment in primary and secondary schools, September 1963 - 17

18
7. Sabah : Number of primary and secondary schools and enrollment, 1963 .
8. Malaysia: Estimated population, by State and sex, December 1963 22

9. Malaysia : Estimated population by age group, December 1961 22

10. Malaysia: Labor force, by industry, 1960 .-- . 23

11. Malaysia : Percent distribution of the male labor force, by occupation ... 23
12. Peninsular Malaysia : Employment status of the labor force, by economic
sector, 1957 . 23
13. Singapore : Employment status of the labor force, by economic sector, 1957. 24
14. Sabah : Employment status of the labor force, by economic sector, 1960. 24
15. Peninsular Malaysia : Public service employees, by employing agency, July
1962 ---- 27
16 .Mainland Malaysia : Membership of registered organizations, December 1963 . 38

17. Mainland Malaysia : Union membership, by sex and racial origin , March 1963 38
18. Singapore: Distribution of unions and membership , by industry, 1962. 39

19. Mainland Malaysia: Strikes, numbers of workers involved, and man -days
lost, 1957–63. 50

20. Peninsular Malaysia : Average daily and monthly earnings on rubber, coconut,
oil palm, and tea estates, by occupation , July 1962 - 69
21. Peninsular Malaysia: Average daily and monthly earnings in the tin industry,
by occupation, July 1962 ... 70

iii
 Contents Continued
Page
Tables - Continued .
22. Sabah : Average daily wages, by occupation and main industry, 1962 .- 72

23. Malaysia: Approximate basic monthly salaries of government personnel, 1965 . 73

24. Singapore: Employer and employee contributions to the Central Provident
Fund . 81

Charts :
1. Malaysia: Ministry of Labour, 1964 . 29

2. Singapore: Ministry of Labour, 1964 . 30

32
3 . Sarawak: Organization of the Department of Labour, 1964 .-- .
4. Sabah: Organization of the Department of Labour and Welfare, 1964 .. 33

iv
 1
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 Labor Law and Practice in Malaysia and Singapore
PART I. THE COUNTRY AND ITS WORKERS
Chapter I. Geographic Setting
Location and Area
Malaysia, located at the extreme southern and
eastern end of Southeast Asia, was formed in Sep
tember 1963 by the merger of the independent
Federation of Malaya with the former British Crown
Colonies of Singapore, Sarawak , and Sabah (formerly
North Borneo) . The country covers a total land
area of about 129,000 square miles; in December
1963, its population was estimated at 10,810,688.
Partly peninsular mainland , partly insular, the
country is divided into two main regions: Mainland
Malaysia 1 and Singapore to the west, and Sabah and
Sarawak in the northern coastal area of the island of
Borneo to the east . These two regions, with the
intervening 350 miles of water, form a crescent
bordering the South China Sea. Each of these
regions is closer to a part of Indonesia than to each
other. The west coast of mainland Malaysia, the
largest part of Malaysia (50,915 square miles), faces
the northern section of the Indonesian island of
Sumatra across the narrow Strait of Malacca . On
the north, peninsular Malaysia has a common land
border with Thailand ; at the southern tip is the
Strait of Johore separating peninsular Malaysia
from the island of Singapore.
Singapore consists of the island of Singapore and
several islets, with an area of about 224 square miles .
The island is connected with the mainland by a road
and rail causeway three-quarters of a mile long.
The city of Singapore occupies the south central
portion of the island .
Sarawak and Sabah constitute the northern part
of the island of Borneo, with Kalimantan (Republic
1 Mainland Malaysia and peninsular Malaysia are used interchangeably
throughout the study. This comprises the area formerly known as the
Federation of Malaya .
of Indonesia ) occupying the remaining and , by far,
the larger share of the island. Sarawak, with an
area of 48,250 square miles, is a coastal strip 450
miles long and from 40 to 120 miles wide extending
southwest to northeast along the South China Sea ;
the State surrounds the Sultanate of Brunei except
for a small coastal area. Sabah, with an area of
29,388 square miles, occupies the northernmost
section of the island; to the north and east are the
Sulu and Celebes Seas and the Philippine Islands.
Proximity to India , Thailand , Indonesia, Hong
Kong, and the Philippines played a significant role
in the 19th and early 20th centuries , when large
numbers of immigrant workers entered the territories
of present-day Malaysia . The Chinese settled
throughout Malaysia , and many Indians, particu
larly Tamils from southern India, settled in western
Malaysia. However, since the 1930's, immigration
to the Malaysian territories has been strictly con
trolled first by the former colonial administration
and , since merger, by the respective State govern
ments. Since the end of World War II, dependence
on immigrant labor has diminished in all parts of
Malaysia except Sabah .
Some exceptions to immigration restrictions are
made in the case of foreign nationals possessing
required skills not readily available in Malaysia's
work force , particularly in Sabah. Some manpower ,
especially construction workers and engineers, and
medical personnel, continues to enter Sabah from
Hong Kong and the Philippines. However, Malay
sia's difficulties with the Philippines over the
political status of Sabah 2 have reduced the number
2 Claims made by the Philippines to titļe over Sabah ( North Borneo)
continue to be a source of contention between the two countries.
3 See section on Political Summary.
1
of Filipinos going to that area . Prior to the “ con
frontation ” with Indonesia 3 much of the skilled
and unskilled labor supply for Sabah, and even
Sarawak , came from Indonesia . Sabah is still in need
of a labor supply, and unable to fill completely its
manpower requirements.
Geographic Factors and Climate
The geographic position of western Malaysia
(peninsular Malaysia and Singapore) has been
significant in the development of the agricultural
and commercial importance of the region . In its
early history, peninsular Malaysia served as a land
bridge between continental Asia and the lands of the
southwest Pacific, and as one of the routes traveled
by the prehistoric peoples of Indonesia, Melanesia,
and Australia. Along the routes used by the early
migrants, especially in the plains in the western part
of peninsular Malaysia, are today the larger towns
and main agricultural and commercial areas. The
developed areas, including large rubber and oil palm
plantations (covering more than 4,000,000 acres) and
tin mines, stretch from the west coast to the foot of
the central mountain ranges, which run northwest to
southeast . A central mountain range extends from
Thailand to Tampin in the state of Negri Sembilan
on the southwest coast. West of the Central Range
is the Bintang Range and to the east is Gunong
Tahan (7,180 ft. ) , peninsular Malaysia's highest
peak. Between the mountain ranges parallel to the
coastlines are many low , flat plains interspersed with
hills and formed by the sedimentary action of small
rivers which drain the peninsula eastward and west
ward from the central highlands. To the east , the
largest rivers are the Pahang, Kelantan , and Treng
ganu ; to the west are the shallow Perak River, the
Selangor, and the Muda. Approximately four -fifths
of the peninsula is covered by forest and swamps;
mangrove swamps fringe the west coast , while the
east coast is lined with sandy beaches.
Singapore, located at the crossroads of continental
and insular Southeast Asia, serves as a transfer
point for trade goods from the ports of all continents.
Its industry and to some extent its culture are
clearly determined by its geographical location and
financial and port facilities. The island is directly on
the main historical sea route between India and the
Philippines, Mainland China, Taiwan, and Japan.
Its western approaches constitute one of the best
natural harbors of the world , the fifth busiest in the
world , and after Hong Kong the second largest in
Asia Singapore commercial firms handle the
financing and sale of products of neighboring
2
countries such as rubber, tin, copra, pepper, lumber,
rice, sugar, and textiles . Singapore also serves as
area distribution and sales promotion center for the
manufactured goods ( chiefly watches and automo
biles) of industrialized countries. Its small area , and
lack of natural resources and of good soil for large
cash-crop plantations, contribute to its dependence
on world trade.
Sarawak and Sabah lie to the east of the main
shipping routes and hence have not profited to the
same degree from the cultural and economic activity
engendered in Peninsular Malaysia and Singapore .
The region's development has, however, shared with
the western region the common influences of former
colonial rule.
Sarawak is divided into three main zones : An
alluvial and swampy coastal plain, an area of rolling
country intersected by mountain ranges, and a
mountainous region in the interior. Although the
mountains are not exceptionally high, the ranges are
generally unexplored . The highest peak is Mount
Murud (7,950 ft.). Many rivers originate in the
mountains and flow to the sea. The largest is the
Rajang, 350 miles long and navigable for nearly 150
miles, while others include the Sarawak (70 miles)
and Batang Lupar ( 122 miles) . Most serve as
major routes of transportation and communication
and are the chief economic arteries of the country.
Sabah is divided roughly in two by the Crocker
Range, which runs north and south parallel to the
coast, and culminates at its northern end in Mount
Kinabalu ( 13,455 ft . ) , the highest mountain in
Malaysia, venerated by the natives as the resting
place of the dead . The numerous rivers constitute
the only means of communication in some districts.
The largest is the Kinabatangan , which courses 350
miles before reaching the sea between Sandakan and
Tambisan on the northeast coast , while the Segama,
Sugut , and Labuk empty into the sea on the east
coast . The rivers of the west coast are shorter and
swifter, the largest being the Padas along whose
valley runs the railway connecting Beaufort and
Tenom in southwest Sabah . Sabah has several
deepwater harbors, including Jesselton , Sandakan,
Lahad Datu, and Cowie Harbor with its port of
Tawau .
Although the greater part of Sabah is covered with
jungle, the coastal area is alluvial and swampy.
Most of the population and the major part of the
rice fields and rubber plantations are concentrated in
an extensive western coastal plain. The east coast
has rich stands of commercial- grade timber, where
logging operations have triggered a recent boom .
 The climate in Malaysia is characterized by
high temperatures, high humidity, and copious
rainfall. Temperature in peninsular Malaysia and
Singapore averages from 74 ° F. to 87° F. during
the year, varying between day and night at least
20 degrees, but with no appreciable seasonal varia
tion. Rainfall is abundant, ranging from 80 to 120
inches a year in the lowlands to about 200 inches in
the highlands. There are no pronounced wet and
dry seasons. However, northeast and southwest
monsoons divide the year into two periods. The
northeast monsoon begins in October or November
(a little earlier in peninsular Malaysia than in
Sarawak and Sabah) and lasts until February or
March, while the southwest monsoon blows from
mid-April or May to September or mid-October.
During the southwest monsoon, sudden squalls and
gusts are most common in the Strait of Malacca ,
where they are known as "Sumatras."
Chapter II. Political and Economic Background
Political Summary
Malaysia was formed on September 16, 1963, by
the merger of independent Malaya with three former
British colonies : Singapore, Sarawak, and North
Borneo. The merger agreement between Malaya
and Singapore provided for Singapore's autonomy in
labor and educational matters ; for Singapore's
representation in Parliament by only 15 seats, which
was less than it would have been entitled to by the
size of its population ; and for automatic Malaysian
nationality for all Singapore citizens. Singapore kept
60 percent of its national revenue in order to pay
for services which in other states are administered
federally. The merger agreement provided that
Sarawak and Sabah are to control immigration to
their areas from peninsular Malaysia and Singapore ,
and to retain English as their official language for 10
years from the inauguration of Malaysia, that is
until the fall of 1973, or for as much longer there
after as their legislatures shall decide. It established
the right of their indigenous peoples to obtain busi
ness licenses and government employment. Ma
laysia as a whole is a considerably looser federation
than the former Federation of Malaya .
Although the emergence of Malaysia has brought
British sovereignty over the area to an end , the
The climate in Sarawak and Sabah also is tropical
and influenced by monsoons. Daytime temperatures
in Sarawak average 85° F. , with little variation and
high humidity. Most of Sarawak receives an annual
rainfall of 120-160 inches. In Sabah, daytime
temperatures on the coast usually vary between
74° F. and 88° F. with night temperatures of around
72° F. Annual rainfall varies from 60 to 160 inches.
Because changes in temperature, wind and rain
fall are slight, there are no noticeable seasonal effects
of climate on either labor supply or work habits.
Rain rarely causes more than brief interruption in
outside work, and Malaysians do not usually take
siestas. Air - conditioning is used principally in the
offices of senior grade officers in government and of
Western companies, but not as yet in factories.
The damp tropical climate undoubtedly accentuates
health problems, but appears to have only a limited
effect on productivity; Western staffs suffer greater
discomfort.
United Kingdom and Malaysia have a Mutua
Defanse Treaty under which at Malaysia's request
the United Kingdom agrees to give military assist
ance. It is this treaty which permits the stationing
of United Kingdom troops in Malaysia and the
retention of the naval base at Singapore and other
bases . The formation of the new country has
engendered Indonesian hostility, expressed in the
policy of “ confrontation .” Confrontation has been
both economic and military : Indonesia ordered all
economic and trade relations broken off; Indonesian
agents have attempted to invade mainland Malaysia
and Singapore, and Indonesian guerrillas have
attacked Sarawak and Sabah . Confrontation has
hampered normal Malaysian development by requir
ing a rapid military buildup, and has affected employ
ment and incomes, particularly in Penang and
Singapore which handled most Indonesian trade
prior to the formation of Malaysia.
Governmental Structure
Malaysia has a parliamentary system of govern
ment. Its principal oddity—which matters very
little—is that it has an elected monarch, the
Paramount Ruler, known as the Yang di-Pertuan
Agong. The Paramount Ruler is chosen by a
Conference of Rulers for a limited period of 5 years,
3
after which another member of their body is elected .
Malaysia consists of 14 States: The 9 hereditary
Peninsular Malaysian sultanates — Johore, Kedah,
Kelantan, Negri Sembilan, Pahang, Perak , Perlis,
Selangor, and Trengganu — of the former Federation
of Malaya ; the 2 former British Straits Settlements
of Penang and Malacca ; and Singapore, Sabah, and
Sarawak .
Governmental structure is similar in all the
States as a result of British rule for so many years
and because State constitutions are similar. (The
exception is Singapore . ) The Federal Government
has more powers than the Federal Government of
the United States: Important examples are police ,
information, and broadcasting. Control of Ma
laysia's national defense , foreign affairs, and com
munications is vested in the National Government,
with its seat in Kuala Lumpur . Other governmental
functions are distributed variously among the States.
Executive. The Paramount Ruler ( Yang di-Pertuan
Agong) is elected for a 5 -year term only by the
hereditary sultans of mainland Malaysia who are
included in the Conference of Rulers. His deputy
( Timbalan Yang di- Pertuan Agong) is also chosen
by the hereditary sultans . The Paramount Ruler
rules with the consent of Parliament , from among
whose members he appoints a Cabinet to advise him
in the exercise of his functions .
The Conference of Rulers is established by the
Constitution. It must be consulted in the appoint
ment of judges, the Attorney General, the Elections
Commission, and the Public Services Commission,
and must consent to the alteration of State
boundaries, extension of any religious acts and
observances to the Federation as a whole (except
in Sabah and Sarawak) , and to any bill to amend the
Constitution . Consultation is also mandatory in
matters affecting public policy or the special position
of the Malays and the natives of Sabah and Sarawak .
The Conference also considers matters affecting the
rights, prerogatives , and privileges of the State
rulers.
Executive power resides with the Cabinet and the
Prime Minister . The Prime Minister is appointed
by the Paramount Ruler , and must be a member of
the House of Representatives who commands the
confidence of the majority of that house.4 Upon
4 The Alliance, the majority group in the House of Representatives, is a
coalition of the three political parties representing the three major compo
nents of the population : Malays (United Malay National Organization ),
Indians (Malayan Indian Congress) , and Chinese (Malayan Chinese
Association) . It has been in power continuously since the Independence
of the former Federation of Malaya in 1957, and since merger in 1963.
4
his advice, the Paramount Ruler then appoints the
members of the Cabinet from either house of Parlia
ment. The Paramount Ruler , if he chooses, may
appoint a number of Assistant Ministers from among
members of either house of Parliament; they are not
members of the Cabinet .
Except for the States of Malacca, Penang, Sabah,
Sarawak , and Singapore , each of the Malaysian
States has a Ruler . The Ruler of Perlis has the
title of Raja and that of Negri Sembilan, Yang di
Pertuan Besar . The remainder are sultans . The
heads of the States of Malacca, Penang, and Sarawak
are Governors, while those of Sabah and Singapore
are designated Yang di-Pertua Negara and Yang
di-Pertuan Negara , respectively (though the manner
of their appointment by the Paramount Ruler is
the same as in the case of the Governors) . In each
State, the Ruler or Governor takes precedence over
all other persons. The executive authority of each
State is vested in the Ruler (the Ruler is also head
of the Islamic religion in his State) or Governor,
but executive functions may be conferred on other
persons by law . Every State has an Executive
Council or Cabinet to advise the Ruler or Governor,
headed by a Prime Minister (in Singapore ) or Chief
Minister (in Malacca, Penang, Sarawak, and Sabah)
or Mentri Besar (in the other States) ; together they
are responsible to the State Legislatures.
Legislative . The Federal Parliament in Kuala
Lumpur may with some exceptions make laws for
the whole or any part of Malaysia. The Parliament
is bicameral, with a Senate ( Dewan Negara) and a
House of Representatives (Dewan Ra'ayat). The
Senate consists of 60 members, of whom 32 are
appointed by the Paramount Ruler and 28 (2 from
each State) are elected by the 14 State legislatures,
which act as electoral colleges. The Senate can
initiate legislation, but all money bills must be
introduced, in the first instance, in the House of
Representatives. A bill originating in the Senate
cannot receive royal assent until it has been agreed
to by the House of Representatives, but the Senate
has only delaying powers over a bill orginating in
and approved by the House of Representatives; in
the case of money bills, delay is limited to 1 month .
Senators serve for 6 years.
The House of Representatives has 159 elected
members. Of these, 104 are from the 11 States of
mainland Malaysia, 15 from Singapore, 24 from
Sarawak, and 16 from Sabah . The first representa
tives to the Federal Parliament from Singapore,
Sarawak, and Sabah were chosen immediately after
Malaysia Day (September 16, 1963) by the legisla
tures of those States. Henceforth , they are to be
elected by direct election just as are those from the
11 States on the mainland. There are to be no more
indirect elections in Sarawak or Sabah . Parliament
can be dissolved at any time by a vote of no con
fidence against the majority party or at the request
of the majority party itself. Then elections are
mandatory within 60 days. Elections in any case
are mandatory at the end of 5 years.
Each of the 14 States has its own written constitu
tion, and, unlike the Federal Parliament, only a
single -chamber Legislative Assembly. The Legis
lative Assembly in Sarawak is known as the Council
Negri. Every State legislature has powers to legis
late on matters not reserved for the Federal
Parliament. Though subjects for legislation are set
out in a Federal List, a Concurrent List (on which
either the Federal or State legislature may legislate) ,
and a State List, residual power lies with the State
(the power to control or arrange for any matter not
specifically covered by the Federal Consitution) .
If any State law is inconsistent with a Federal law,
the Federal law prevails and the State law is, to
the extent of the inconsistency , void .
Each State legislative assembly follows its own
procedure; usually it is the same as that in the House
of Representatives in the Federal Parliament. All
members of the State legislative assemblies of Singa
pore and the 11 States of mainland Malaysia are
directly elected from single-member constituencies,
except that in the case of mainland Malaysia, both
the Legislative Assemblies and Executive Councils
include three nonelected official experts “ in attend
ance”—the State Secretary, the State Legal Adviser,
and the State Financial Officer — without vote ; in
effect, their presence is as official advisers only, and
their advice can be rejected. In Sabah, prior to
and immediately after Malaysia Day, the elected
local authorities, functioning in electoral colleges,
elected 18 members to the Legislative Assembly.
Henceforth , the Legislative Assembly will be elected
directly. Prior to and immediately after Malaysia
Day, Sarawak had a three-tier system, with the
elected District Councils forming themselves into
electoral colleges to elect members to five Divisional
Advisory Councils which, in turn, as electoral
colleges, elected 36 members to the Council Negri
( the legislative body) . Henceforth, the Council
Negri will be elected directly. In Sarawak , the
State Secretary, the State Attorney General, and
the State Financial Officer, are ex officio members
of the State Legislature as well as the State Execu
tive Council (known as the Supreme Council).
Local Administration . In mainland Malaysia, each
State is divided , for administrative purposes, into
administrative districts under a district officer from
the Malaysian Civil Service or the appropriate State
civil service. In most States, they are directly
responsible for the land office (similar to a recorder
of deeds office) and are frequently also ex officio
chairmen or presiding officers of the local goverment
authorities. They preside over such statutory bodies
as Rubber Licensing Boards, and are responsible
for the general administration of the district in their
charge. State and Federal departments do not
come under their control, but the local heads of
these departments are expected to consult the
district officers in all matters of local importance ,
and to cooperate with them.
There are five types of local government authori
ties functioning under the State governments in
peninsular Malaysia: ( 1 ) City councils in George
Town and Malacca Municipality, which are elected
and are presided over by an elected Mayor; (2) a
municipal council in Kuala Lumpur with 12 elected
and 6 appointed members and an elected executive ;
(3) town councils in larger towns, with an adminis
trative officer paid by the State government ; (4)
appointed town boards and town councils; and (5)
elected local councils in rural areas .
Singapore is a unitary State with, however, some
local government . The municipal area of Singapore
is governed by an elected city council of 32 members.
The rural areas of Singapore are administered by
elected district boards under the supervision of either
a district officer or an executive officer ( civil serv
ants) . The district boards are responsible for such
matters as building inspection, water supply,
markets, and parks. Rural engineering , health , and
education are the province of Singapore State
government departments . There are four district
offices (under the jurisdiction of the Ministry of
National Development) as follows : ( 1 ) Katong
District (under the administrative jurisdiction of a
District Officer); (2) Serangoon District, also with a
District Officer; (3) Bukit Panjang with a District
Officer; and (4) Islands and Settlements under the
jurisdiction of a higher executive officer.
Sabah is divided for local administration into four
Residencies : West Coast , Interior , Sandakan, and
Tawau, with headquarters at Jesselton , Keningau,
Sandakan , and Tawau, respectively. The island of
5
 Labuan off the west coast of Sabah is administered
by a District Officer responsible directly to the State
Secretary in Jesselton . District Officers are stationed
at Jesselton , Tuaran, Kota Belud, Kudat, Papar,
and Ranan on the West Coast; at Tenam, Beaufort,
Kenningan, Tambunan, and Pensiangan in the
Interior Residency ; Sandakan and Beluran in the
Sandakan Residency; and at Tawau, Lahad Datu,
and Semporna in the Tawau Residency. There are
also a number of subdistricts administered by
assistant district officers. Within each district,
village headmen carry on administration under a
native chief (selected by the villagers) who in turn is
responsible to the district officer. The native chiefs
administer native courts, which deal with offenses
against native customs and succession to native
estates.
Sarawak State has five administrative divisions,
each in charge of a Resident — the First Division,
with headquarters at Kuching; Second Division , at
Simanggang; Third Division, at Sibu ; Fourth
Division, at Miri ; and Fifth Division, at Limbang.
Each division is subdivided into a number of
districts, administered by district officers, and most
districts are again subdivided into smaller areas or
subdistricts, each in charge of a member of the
Sarawak public service.
Local government in Sarawak consists of the
Kuching Municipal Council and 23 District Councils
covering the entire State . Local officials are elected
without regard to ethnic origin by secret ballot on
the basis of universal adult franchise . Local
authorities are responsible for a number of matters of
which the most important are primary education and
health work .
Judicial. Judicial power in Malaysia is vested in a
Federal Court, and three High Courts of coordinate
jurisdiction and status. The Federal Court (similar
to the Supreme Court in the United States) , consist
ing of a president (known as the Lord President of
the Federal Court) , of the Chief Justices of the three
High Courts, and two other judges, is headquartered
in Kuala Lumpur but holds sessions in the other
States. The Federal Court has exclusive jurisdiction :
(1) In determining appeals from decisions of either a
High Court or a judge thereof (except decisions of a
High Court given by a registrar or other officer of
the court and appealable under Federal law to a
judge of the court ); (2) in determining whether a law
made by Parliament or by the legislature of a
State is invalid on the grounds that it provides in a
matter with respect to which Parliament or, as the
6
case may be , the legislature of the State has no
power to make laws ; (3) in disputes on any other
question between States or between the National
Government and any State; and (4) in any question
referred by the Yang di-Pertuan Agong for an opin
ion on the effect of any provision of the Constitution.
The three High Courts are : ( 1 ) The High Court in
peninsular Malaysia for the various States of
peninsular Malaysia, which has its principal registry
in Kuala Lumpur ; (2) the High Court in Singapore
for the State of Singapore ; and (3) the High Court
for the States of Sabah and Sarawak, which has its
principal registry in Kuching, Sarawak .
In peninsular Malaysia, a unified judicial system
exists and all courts apply both Federal and State
laws. Apart from Malaysia's Federal Court and
the High Court in peninsular Malaysia, there are
lower courts consisting of Sessions and Magistrates
Courts situated in the principal urban and rural
areas . Sessions Courts have both criminal and
civil jurisdiction. Magistrates Courts also have
criminal and civil jurisdiction but of a more restricted
nature. Most cases go before magistrates and ses
sions courts . In addition to the foregoing courts,
there also are local courts known as Penghulus
Courts which have limited local jurisdiction.
Islamic issues are submitted to a kathi, the Muslim
official carrying out the duties of a magistrate in a
court of justice . The kathi also officiates at Muslim
marriages and divorces. The number of kathis in
each State depends on the number of waliahs
(districts) . Each kathi has his own courthouse.
Some juvenile courts exist.
In Singapore , courts of law are established under
the Courts Ordinance, chapter 3, in the revised
edition of the Laws of the State. The Chief Justice
(appointed by the Paramount Ruler on advice of
the Prime Minister) as head of the judiciary exercises
administrative control over the courts. There are
at least two civil District Courts, each presided over
by a district judge who is empowered to try civil
cases where the amount in dispute does not exceed
M $ 1,000 (US$333) .5 Cases involving larger sums
are heard in the High Court presided over by the
Chief Justice or one of five puisne judges . Appeals
from the Civil District Courts are heard in the High
Court before a puisne judge, and appeals from the
High Court exercising original civil jurisdiction are
heard before a Court of Appeal consisting of the
Chief Justice and two puisne judges. The Court of
Appeal, the Court of Criminal Appeal, and the High
5 One Malaysian dollar = US $ 0.333.
Court in its civil and criminal jurisdiction are collec
tively described as the Supreme Court. The
Supreme Court judges are appointed by a council
consisting of the Chief Justice, all other supreme
court judges, and the State Advocate General.
Singapore also has at least 15 Criminal District
and Magistrates Courts and 1 juvenile court (hand
ling cases of persons under 16 years of age) . The
Magistrates Courts are presided over by magistrates
with powers generally to impose prison sentences
extending to 1 year and fines up to M$2,000. The
judges of the Criminal District Courts have power
generally to impose prison sentences of from 3 to 7
years and fines up to M $ 5,000. More serious
criminal cases are tried in the High Court at a
monthly assize, presided over by a judge of the
High Court with a seven -man jury ; appeal may be
taken to the Court of Criminal Appeal, consisting
of the Chief Justice and two judges or more . In
addition , a Shariah Court set up under the Muslims
Ordinance hears support cases where the parties are
of the Islamic faith . Special courts handle labor
problems. (See p. 50.)
The Chief Justice of the Sabah and Sarawak High
Court is resident in Kuching, Sarawak, where the
principal registry is situated, and sits on the Federal
Court when it is in session in Sabah . The one puisne
judge in Sabah is the senior puisne judge of the High
Court for Sabah and Sarawak. He sits mainly in
Jesselton and Sandakan, but visits other centers on
circuit as business necessitates. There are three
puisne judges in Sarawak . Appeals from decisions of
the High Court are heard exclusively by the Federal
Court, which holds periodic sessions in Jessėlton ,
the capital of Sabah.
The Magistrates Courts in Sabah are under
Stipendiary Magistrates, and Magistrates of the
First, Second, and Third Classes.
Apart from the Magistrates Courts in Sabah,
Native Courts have jurisdiction in the following
matters: (1) Cases arising from alleged breach of
native law or custom , in which all parties are natives;
(2) cases arising from alleged breach of native law
or custom - religious, matrimonial, or sexual-in
which one party is a native, if the District Officer
has sanctioned proceedings ; and (3) cases arising
from claims of breach of Muslim law and custom
in which all parties are Muslims. Appeals from the
Native Court are made to the District Officer in
whose district the Native Court is established .
Appeal from the District Officer is to the Native
Court of Appeal, which is presided over by a judge
of the High Court.
The Court system in Sarawak is similar to that
in Sabah; the Magistrates Courts and Native
Courts are also similar, and have similar jurisdiction.
The National Economy
Malaysia is principally an agricultural country,
although the structure of economic activity varies
among the component States. In peninsular
Malaysia, about 58 percent of the employed labor
force are engaged in agriculture, forestry, and fishing,
as compared with about 80 percent in Sarawak and
Sabah and about 8 percent in Singapore. Con
versely, manufacturing and construction occupy
about 20 percent of the labor force in Singapore,
but only about 10 percent in peninsular Malaysia
and less than 6 percent in Sabah and Sarawak .
Trade, transport , and other services account for
about 70 percent of employment in Singapore,
about 30 percent in peninsular Malaysia, and 13
percent in Sarawak and Sabah .
Singapore has the highest per capita income,
about M$1,300, peninsular Malaysia about M $ 800,
Sabah about M$700, and Sarawak about M$550.
The average for all of Malaysia is approximately
M$840, well above that in most other countries of
southeast Asia.
The prosperity of Malaysia, compared with
surrounding countries, is in large part based on its
specialization in a number of profitable export
products and trade services. For Malaysia as a
whole, exports of domestic goods and services
amounted to about M$4 billion in 1961 , or over 41
percent of the combined national product. The
ratio of export income to gross national product in
peninsular Malaysia is 40 percent , while in the
remaining areas, it is about 50 percent. While
there are significant differences in the structure of
foreign exchange earnings, rubber plays a major
role in all of them, accounting for about 45 percent
of total export earnings in 1961 (table 1 ) and also
contributing significantly to Singapore's entrepôt
income. However, lumber is the mainstay of Sabah's
foreign exchange earnings, while in Singapore,
foreign exchange earnings derive mainly from a
variety of entrepôt activities (importing and reex
porting goods and processing imported raw materials
for export) and , to a lesser extent, from domestic
exports, and expenditures by United Kingdom
forces .
Malaysia's large favorable trade balances have
been reduced since 1962 by some decrease in the
price of rubber and rising import requirements for
7
 TABLE 1. FOREIGN EXCHANGE EARNINGS OF MALAYSIAN transshipped from Singapore, where rubber prod
STATES, BY PRINCIPAL SECTOR, 1961 ucts are also made ; about 6,000 people are employed
[In millions of Malaysian dollars 1 ]
in Singapore in rubber processing and manufacturing.
Total , Tin ranks second as a source of Malaysian export
Net exports 2 foreign Peninsular Singa- Sarawak Sabah
exchange Malaysia
earnings
pore earnings ( 13 percent of the total in 1961 ) and in
peninsular Malaysia provided about 23 percent of
All exports--- 3,296 1,918 986 172 220 the total export earnings for 1961 (table 1 ) . Malay
Total merchandise ... 2,757 2,219 140 178 220 sia is the world's largest single source of tin, pro
Rubber.-- 1,475 1,347 4 83 41
Tin metal and
concentrates . 432 (3) ( 3)
ducing about one -third of the free world's supply .

CO
TO
432
Lumber . 185 40 42 103 The tin industry employs over 33,000 workers in

$
Iron ore . 164 164 (3)
Coconut products
Palm oil ...
58
58
31
58
27 some 704 mines, of which 592 are Asian-owned and
)
3
(

Pepper . 29 29 3 112 European-owned . The Kinta Valley in Perak ,

Manufactured
goods including
processed foods . 226 90
Other, including
remaining pri
mary and agri
cultural prod
130 57
ucts .
Net investment
income - 207 - 223
Entrepôt earnings
Other services ...
458
288
60
-138
11Malaysian dollar = US $ 0.33.
2 Excluding intra -Malaysia trade, where identifiable. Exports are
valued at the export price in the country of origin whether or not they pass
through Singapore. Brunei petroleum exports via Sarawak are excluded.
3 Negligible .
4 Not available .
SOURCE : Malaysian Government, Department of Information , Malaysia
in Brief, September 16, 1963 , p. 75 .
economic development programs.
exchange reserves of the entire country were M$3
billion in 1962, or the equivalent of nearly 1 year's
imports of goods and services, more than half held
directly by the governments of the States of Malaysia
and various public agencies. At the same time, the
public external debt of the States remained com
paratively small, about M$700 million total. As
further indication of the country's relative economic
and financial stability, Malaysia's 1963 cost- of
living index was substantially the same as that for
1953 .
Malaysia is the world's largest single producer of
natural rubber, the country's main source of income
(850,000 tons out of the world's total of 2,100,000
tons in 1963) . The heart of the rubber industry is
peninsular Malaysia, with about 4 million acres,
particularly in the western States ; about 52 percent
are in smallholdings, the remainder in estates of 100
acres or more . The rubber estates employ about
300,000 workers ; over 2 million persons in mainland
Malaysia (includes families of rubber workers as
well) are dependent upon the industry. In addition
to peninsular Malaysia, about 200,000 acres, more
than 50 percent owned by smallholders (tracts under
250 acres) , are in Sabah, and roughly 330,000 acres,
mostly in smallholdings, in Sarawak . Rubber has
been the second most important export item in
Sabah and Sarawak . Rubber is processed and
120 8 8
peninsular Malaysia, is the most productive tin
field in the world .
16 16 41
Other important exports are lumber, iron ore,
coconut products , palm oil , and pepper. The
44 -28
398
404
(3)
22 ( )
foreign exchange earnings of lumber in 1961 were
M$185 million, which ranked this industry third
after rubber and tin. With some 400 sawmills and
plywood mills in 1960, and about 70 small plants
making building construction items (windows ,
doors, floors, etc. ) and crates, this ranks as a major
industry, particularly in Sabah. Malaysia is the
Total foreign largest producer of iron ore in the Far East ; exports
(mostly to Japan) amounted to M $164 million in
1961 . Coconuts, grown primarily in peninsular
Malaysia, and in smaller volume in Sabah, are
marketed in the form of copra to mills in peninsular
Malaysia and abroad, for the production of coconut
oil . Most of the copra in 1962 (75 percent or about
134,000 tons) came from smallholdings in peninsular
Malaysia . Coconut products ranked fifth in export
value in 1961. Palm oil , which ranked sixth , comes
chiefly from estates in peninsular Malaysia. The
government has encouraged the cultivation of oil
palm . Pepper is cultivated mainly in Sarawak
where it ranks next to rubber and lumber as an
export crop (table 1 ) .
Three categories of industries are significant in
the manufacturing sector of Malaysia : (1 ) . Primary
processing of agricultural products, such as rubber
and coconut, off estates (Malaysia does not include
processing on estates in the manufacturing sector) ;
(2) manufacture of foodstuffs, beverages , tobacco,
structural-clay products, and wood products made
of local raw materials (most industries employing
more than 1,500 workers are in this group) ; and (3)
more capital- intensive operations such as machinery
repair and production of tin cans and machine parts.
The contribution of the manufacturing industry to
exports on a Malaysia-wide basis was M $ 226
million in 1961 .

8
 In peninsular Malaysia and Singapore, about 80
percent of all firms have fewer than 20 employees,
and only 2 percent have over 100. In Sarawak and
Sabah, almost all firms employ fewer than 50 persons.
The following manufacturing groups, excluding
primary processing, are the largest in Malaysia in
terms of employment (each employing over 1,500
workers): Small shipbuilding, metal-can manufac
turing, food processing, printing and publishing,
structural-clay and cement products, rubber shoes ,
furniture, tobacco products, beverages , and crackers
and cookies .
Malaysian imports consist mainly of manufactured
consumer goods, machinery, chemicals, textiles,
tobacco, and foodstuffs (table 2) ; the total value of
imports in 1962 by main commodity groups was
M$5,388,400,000. Though rice , the staple food of
Malaysians and second in importance as an agri
cultural commodity, is produced in all of Malaysia
except Singapore, large amounts must still be im
ported (about 20 percent of the rice consumed for
peninsular Malaysia, 50 percent for Sarawak, and
TABLE 2. MALAYSIAN IMPORTS , BY MAIN COMMODITY
GROUPS, 1962
[In millions of Malaysian dollars 1]
Region and commodity
All imports.--
Peninsular Malaysia and Singapore
Foodstuffs (including rice) .
Petroleum and products .
Crude rubber 2
iii
roughly 33 percent for Sabah) , chiefly from Thailand
and Burma.
Rice is produced mainly on smallholdings of
about 4 acres . The governments of peninsular
Malaysia, Sabah , and Sarawak have promoted the
extension of the rice cultivation area by constructing
drainage and irrigation facilities, and by providing a
subsidy to rice farmers to buy fertilizers. The
acreage under cultivation for the 1962–63 season was
the highest on record , with nearly 1 million acres
yielding about 624,000 tons of rice . Roughly
400,000 workers are engaged in rice cultivation in
peninsular Malaysia.
All main commercial centers of Malaysia are
connected by scheduled airline flights. Peninsular
Malaysia and Singapore have a well -developed
transportation network which is being improved
and expanded . Railways and highways link Singa
pore with Kuala Lumpur and other peninsular
Malaysia ports and commercial centers, and the
main rail lines are also linked to Thailand's railway
to Bangkok. While internal transportation facilities
in Sabah and Sarawak are relatively undeveloped ,
these areas have port facilities for oceangoing
vessels and are connected with the western region by
Value airlines. The transport of cargo and people within
Sabah and Sarawak is by small boats on rivers and
5,388.4
streams, and by coastal vessels.
4,810.7
992.7 An overall Malaysian Five - Year Development
679.8
Plan to begin in 1966 is planned to integrate the

589.6
Textile manufactures 282.3
273.7 economies of Malaysia's four components, emphasiz
!!!!!

Transport equipment
Machinery (nonelectrical) 236.4
Chemicals. 234.0 ing diversification to make the country less depend
Machinery ( electrical). 176.5
Metallic ore and scrap 176.2
165.1
ent on rubber and tin. The plan also calls for con
Iron and steel .--
Beverages and tobacco 114.8 struction of a network of roadways in Sabah and
Metal manufactures . 103.6
Miscellaneous manufactured goods . 317.2
468.8
Sarawak linking the productive areas with shipping
Others.-
ports .
ei

Sabah .. 177.1
Machinery 40.4 Malaysia has received some foreign assistance for
icoi!

iiii

Tobacco, cigars , and cigarettes . 39.2

development. Most such support since December
!

Provisions . 27.4
Oil .. 18.4
1962 has been in the form of interest -bearing credits.
i

13.4
!!

Metals
!

Rice ... 11.8

Textiles and apparel. 10.6 Direct grants have amounted to US$6.6 million,
Vehicles .. 10.2
Sugar .- 2.9 largely from the United Nations Technical Assist
Building materials . 2.8
ance Program and Special Fund ; and from Canada,
Sarawak . 400.6
Crude oil. 194.5 Australia, New Zealand , and the United Kingdom,
Food .. 46.2
Machinery and transport equipment . 33.9 under the Colombo Plan . External credits extended
Manufactured goods.. 32.5
Rice 22.0 to Malaysia during 1963 were somewhat larger than
Chemicals . 14.6
Petroleum products 12.7 in the past because of expanded defense and economic
Crude materials , except fuels . 9.2
Cigarettes and tobacco . 6.4 development obligations following the merger of the
Beverages (alcoholic) -- 2.8
Animal and vegetable oils and fats . .5
.4
Malaysian areas. The World Bank granted a loan
Beverages (nonalcoholic). of US$8 million to increase the lending reserves of
Others.- 24.9

11 Malaysian dollar = US$0.33.

2 Presumably imports from mainland Malaysia .
SOURCE : Peninsular Malaysia and Singapore - Malaya (Singapore and
Federation of Malaya) External Trade Statistics for 1962.
Sabah and Sarawak-Government of Malaysia , Department of Infor
mation, Malaysia in Brief, Sept. 16 , 1963 , p. 74 .
Malayan Industrial Development Finance, Ltd. , to
finance new industries. The United Kingdom has
committed a sum of US$85 million for military and
economic development purposes through 1965. The
9
 World Bank has approved a credit of US$51 million
to finance new electrical power facilities in Malaysia,
and the West German Government has approved a
long- term credit of US$5.5 million to be used for the
development of port facilities in Butterworth.
Singapore has been granted its first loan from the
World Bank in the amount of US$ 15 million . There
is no aid program in Malaysia under the U.S.
Agency for International Development (AID) .
The principal sources of revenue are import and
Chapter III. The People and Their Culture
Ethnic Groups
Malaysia's population of approximately 10,811,000
(December 1963) is made up of roughly equal propor
tions of ( 1 ) Malays and other indigenous races, and
(2) other ethnic groups, mainly Chinese (the largest
and economically most important) and Indian.
However, the proportions in the various areas differ
substantially (table 3) . In mainland Malaysia,
the Malays form about 50 percent of the population,
Chinese 37 percent, Indians and Pakistanis about 11
percent, and people of other origins (Ceylonese,
Arabs, Thais, and Europeans) make up the
remainder. The Malays predominate in the east
coast States of mainland Malaysia, and in rural and
agricultural areas, where they cultivate most of the
rice land, generally in smallholdings. Some are
engaged in fishing as a full-time occupation. Some
are wage earners on the oil palm and rubber estates,
and many are in government service. The over
whelming majority of the police force and armed
services are Malays, as are many of the teachers in
schools and colleges. A small group of Malays who
have had university education hold most of the top
posts in government service. The Malays are
becoming increasingly interested in income from
labor and cash crops and work their smallholdings
in rubber (about half the smallholdings in rubber
are owned by Malays) intensively when rubber
prices are high. They are less prone to join organi
zations than are the Chinese and Indians. However,
like the Chinese, the Malays are characterized by
emphasis on status and its symbols, as well as on
“ face .”
The Chinese in mainland Malaysia, together with
Indians and Pakistanis, are concentrated in the
west coast States, especially in the towns and
industrial areas. Significant groups of Chinese are
10
export duties, and, to a lesser extent, taxes on cor
porations and upper level incomes—up to 40 percent
on corporate profits and a top-bracket rate on per
sonal incomes of 45 percent in peninsular Malaysia
and 55 percent in Singapore. Government revenues
amounted to more than one-fifth of Malaysia's
gross national product in 1963 , sufficient to finance
the regular budgets and more than half of the
development outlays.
found also in rural areas , where they are engaged
primarily in market gardening. The Chinese con
stitute one of the most economically active groups.
They own a number of large rubber estates and
take an active part in the cultivation of export
crops . They control most of the pineapple plantation
and canning industry, are strongly represented in
the service industries and in commerce , and recently
have been branching out in manufacturing. The
Chinese have a keen sense of the need for education ,
for which they will make major sacrifices. Also, the
Chinese are especially conscious of “ face ” and make
every attempt to avoid embarrassment to them
selves and to others. They have generally relied on
their own resources rather than on the actions of
government .
The Indians in mainland Malaysia, largely Tamils
from South India, are either town dwellers or workers
on rubber estates. In the cities, they are engaged in
commerce and banking, marine transportation, the
professions, municipal services, and the operation
of harbors and docks . While most Indians in main
land Malaysia live on the west coast, there are also
large concentrations in the north and the south.
In Singapore, Chinese make up 75 percent of the
population as against the Malays ( 14 percent) and
Indians (8 percent) . In Sarawak, 31 percent of the
population are Chinese, and in Sabah, 23 percent.
They are chiefly engaged in trade and tend to be
concentrated in towns and developed rural areas .
They supply most of the artisans for industry and
many of the clerks and technicians employed in the
civil service and commerce. The Chinese business
and shopkeeping communities on the east coast of
Sabah have long -established connections with Hong
Kong, while those on the west coast tend rather to
look toward Singapore . The Malays in Sabah are
found chiefly in the clerical aspects of commerce, in
 TABLE 3 . ESTIMATED POPULATION OF MALAYSIAN STATES, BY ETHNIC GROUP, 1961
[In thousands)

Malaysia Mainland Singapore Sarawak Sabah

Malaysia
Ethnic group
Number Percent Number Percent Number Percent Number Percent Number Percent

All groups--- 10,187 100.0 7,232 100.0 1,700 100.0 780_100.0_475 100.0

Malays and other indigenous people 4,707 46.2 3,620 50.1 238 14.0 529 67.8 320 67.4
Chinese.. 4,302 42.2 2,670 36.9 1,279 75.2 243 31.2 110 23.1
Indians and Pakistanis . 955 9.4 813 11.2 142 8.4
Others 1 223 2.2 129 1.8 41 2.4 8 1.0 45 9.5

1 Indians and Pakistanis are included under " Others” in the Sarawak
figures. In the case of Sabah , grouped under " Others” are natives of
mainland Malaysia, Singapore, Indonesia, the Philippines, India , Ceylon,
Sarawak, the Cocos Islands, etc., who could (with the exception of those of
Indian or Ceylonese origin) perhaps be more appropriately grouped with
the indigenous people because they are all of the Malay race.
SOURCE : Government of Malaysia, Department of Information, Malaysia
in Brief, Sept. 16, 1963 , p. 8.

government service as police officers, the military
services, and in communications and transportation.
Sarawak's large indigenous population is made up
of some 137,000 Malays, 246,000 Sea Dayaks or
Ibans, 61,000 Land Dayaks, 46,000 Melanaus, and
39,000 people of other minor groups . The Malays
and Melanaus are mostly swampland rice farmers,
fishermen , and, sago cultivators. Many live in
villages (kampongs) in and around the main towns.
The urban Malays are wage and salary earners and
many are employed in government service. The
Melanaus specialize in sago cultivation. The Sea
Dayaks or Ibans are found in all parts of Sarawak
along the banks of rivers, but mainly in the southern
areas. They are still a predominantly longhouse 6
dwelling community, and practice both wet and dry
rice culture. Some work as clerks, school teachers,
and public servants. The Land Dayaks, found
largely in the interior of southwestern Sarawak, like
the Sea Dayaks practice a dry and wet rice culture,
but unlike them , they do not elect their chiefs (known
as " Orang Kaya” instead of " Penghulu ” ); instead,
the members of the village meet and discuss
candidates until one is agreed on.
In Sabah, the indigenous people are made up of
152,000 Dusuns or Kadazans, 63,000 Bajaus, 22,000
Muruts, and 83,000 Brunei Malays, Kedayans, and
other minor groups . The Dusuns (more properly
known as Kadazans) live chiefly on the west coast
and in the interior. They are primarily agricultur
alists and are Sabah's main rice producers. The
indigenous groups practice agriculture and many live
in longhouses, usually in isolated small villages
scattered along the middle and upper reaches of the
6 The longhouse has a communal outer - room and open verandah , though
each family has an inner private room. The longhouse is presided over by
an elected headman known as the “ Tuai Rumah" and a group of houses
elect their own chief or " Penghulu . ” Land Dayak longhouses differ; they
have no open verandah .
rivers. Occasionally, they seek temporary work on
rubber plantations.
Throughout Malaysia , increasing numbers of all
races are engaging in professional activities and in
public service. Also, Europeans, mainly British,
continue to play an important role in the production
of rubber and tin , and in commerce and the profes
sions. Eurasians, many of whom are of part Portu
guese origin from the Malacca area, add to Malay
sia's racial makeup .
Language
No language is common to the entire country ,
although the Constitution (Pt. XII, art. 152, sec. 1 ,)
designates Malay as the national language. The
same article, sections 2–5, as well as article 161 ,
provides for the use of English in government
(including the legislatures) at least until 1967. In
addition, many other languages and dialects are
spoken, including the following dialects of Chinese :
Mandarin (official spoken language) , Cantonese,
Hokkien, Teochew , Hakka, and Hainan; and of
Indian : Tamil, Telugu , Malayalam , Gujerati, Pun
jabi, and Bengali.
The Malay language of Malaysia has the same
roots as the Indonesian mother tongue " Bahasa
Indonesia.” It is part of the Malay Polynesian
family of languages which extend over the south
Pacific area . Though the pronunciation of Malay is
that of Johore and the Riau archipelago , it is spoken
in various dialects throughout Malaysia. There are
two forms of Malay script, Jawi and Roman (Rumi).
A large part of the Malay language literature is in
the Jawi script, which, augmented by five letters,
uses the Arabic alphabet. The Roman or Rumi
script is being popularized ; it is frequently seen on
billboards and signs, and in magazines. Estimates
11
 by government officials place the number of Malay
speaking Malaysians at from 60 to 75 percent of the
population and, of these, roughly 60 percent speak
English as well. English is the second language and
provides the means of communication for Malays,
Chinese, and Indians ; it is widely used in govern
ment, commercial and industrial circles, and in the
schools, and by Malays occupying technical,
professional, managerial, supervisory, and clerical
positions .
Government officials estimate that about 44 per
cent of the Malaysian population speak Chinese in
its various languages and dialects, the most common
being Mandarin , Hokkien, and Cantonese, especially
for oral communication between the different
Chinese groups. Most Chinese speak at least one
Chinese dialect, and roughly half can read and write
Chinese . Some 40 to 70 percent of the Chinese in
Malaysia speak English, which , as with Malay
English -speakers, is particularly manifest among
Chinese technical, professional, managerial, super
visory, and clerical personnel.
A variety of Indian languages is spoken by about
10 percent of the total population. The majority of
the Indians speak Tamil, about 80 percent speak
Malay, and about 30 percent speak English.
Among the indigenous peoples, other than the
Malays, a wide variety of Malay language dialects
exist, particularly among the Land Dayaks of
Sarawak and the Muruts of Sabah and Sarawak.
Although accurate data on the number of English
speaking indigenous people other than the Malays
are not available, a number have learned English in
school and by association .
For industrial, agricultural, and commercial
managers throughout Malaysia, the most useful
languages for oral communication are Malay ,
English, and Southeast Chinese dialects, and the
most useful for written communication are English,
Malay, and Chinese . For written communication
between industry and government, English still
prevails, although Malay, as the national language ,
is being used more frequently . Chinese and Tamil
are used only occasionally in this connection . The
language of communication between management
and workers naturally depends on the composition
of the work force employed . In firms that employ
Chinese, Malays, and Indians, the bulletin boards,
notices, and company news circulars sometimes use
all three languages plus English, but more often only
English, Malay , and Chinese. The language for
collective bargaining is usually English.
12
Religious Groups
Islam is the state religion of Malaysia , but each
person has the constitutional right (Constitution of
Malaysia, Pt . I, art. 3 , secs. 1-4 ) to profess and
practice his own religion . Special safeguards for
freedom of religion in Sarawak and Sabah are
guaranteed under Part IV (Ch . 2 , art. 38, secs. 2
and 7) of the Constitution. The Yang di-Pertuan
Agong is the supreme authority on all matters con
cerning Islam, and the nine sultans are the religious
heads of their respective states.
A precise enumeration of persons in Malaysia , by
religion , has not yet been undertaken. However,
fairly accurate estimates can be made on the basis
of ethnic and national divisions. According to the
data in table 3, about 48 percent of the population
are Islamic ; 42 percent adhere to Chinese beliefs—
Confucianism , Taoism, and Buddhism ; and about
8 percent belong to Hindu sects . The remainder of
the population is made up of pagans , chiefly among
the indigenous tribes of Sabah and Sarawak, and
Christians (including some Chinese and Indians) ,
who are chiefly Anglicans, Methodists, and Catholics,
scattered throughout Malaysia. Confucianism 7
links and strengthens family life ; Taoism teaches
freedom from materialism ; and Buddhism is based
on a doctrine of reincarnation and obligations of
ancestral worship. The Indian Hindu worships a
plurality of gods. Hinduism is a growth of ideas,
rituals, and beliefs so comprehensive as to range from
pantheism to atheism. Most Hindus are worshipers
of Vishnu , Shiva, and their Saktis (powers) . Many
Hindus also adore the sun (Surya) and worship
Ganesa (Ganapatya) , the elephant-headed god
who is believed to remove obstacles and grant
success .
The most important religious group from the
viewpoint of the labor force is the Muslims (those of
the Islamic faith) ; besides nearly all the Malays,
they also include the Indonesians in Malaysia , the
Arabs, and most Pakistanis. While many Muslims,
particularly those in Singapore, do not follow their
religion rigidly, it does influence work practices and
relations. The Koranic requirement of five daily
prayer periods is not adhered to by most Muslims
in Singapore, so factory prayer breaks are not neces
sary ; however , this requirement is strictly adhered
to in many parts of mainland Malaysia, where prayer
breaks are required . Many Muslims in mainland
7 Confucianism is not a religion in the strict sense, although festivals in
Confucian temples often exhibit religious aspects. Confucianism is more a
code of ethics or way of life, which stresses the primacy of moral values and
the dignity of man .
Malaysia and some in Singapore go to the mosque on
Fridays for noon prayers , and employers usually allow
Muslim employees time off for this purpose if they
wish it . Some employers close shop on Fridays
rather than Sundays if they have more Muslims
than Christians among their employees (the labor
laws require employers to grant 1 rest day per week,
not necessarily Sunday ). The Koran requires all
Muslims who can afford the expense once in their
lifetime to make a pilgrimage (haj) to Mecca. The
few who make the trip are usually allowed to take
accumulated leave and additional leave without
pay if needed . Muslims also adhere strictly to the
prohibition on pork, and require separate dishes and
utensils from those used by other groups for the
preparation of their meals; this means that separate
kitchens and menus must be maintained for them
by employers who provide meals .
Though most Muslims have only one wife, polyg
amy may be practiced, but at times causes per
sonnel problems. Wives occasionally complain to
personnel officers that their husbands favor other
wives in sharing wages earned . If a company pro
vides housing and if two or more wives are unwilling
to live in the same house, management normally
recognizes only the first wife, and the employee must
keep his second wife elsewhere. Usually, only the
first wife and her children are entitled to fringe
benefits. The same rules are applied to polygamous
Chinese as to Muslims.
In the Islamic month of Ramadan , Muslims
neither eat nor drink from sunrise to sunset . Accord
ing to a number of employers, this tends to cause
fatigue, inefficiency, and hot tempers among Muslim
workers during this period. Most employers avoid
night shifts for Muslim workers during Ramadan.
Among the Hindus in Malaysia , caste differences
do not affect labor practices. Caste attitudes which
persist are apparent only in personal social relation
ships. The prohibition against killing cattle or
eating beef, which exists in India, is not a considera
tion in Malaysia. Accordingly, employers who
provide food allow their Indian workers to choose
either Malay or Chinese food . If an employer
provides housing for Indian employees, they will
usually require a site for worship, where they may
erect a small temple .
The Chinese have no religious practices or pro
hibitions that affect work relationships. They
respect the religious beliefs of others.
Some animism (spirit worship) exists in the
oriental religions of Malaysia . Often it is more
influential than official doctrine in determining
conduct. Many Hindus, for example, regard snakes
as divine and refuse to kill them . Some Hindus
also hold monkeys sacred because they believe that
monkeys helped Rama conquer Ceylon. Hindus
venerate certain plants , so that Hindu workers may
be reluctant to cut down specific trees. Similarly,
the Malays venerate some trees because they are
misshappen or otherwise unique and are believed to
be the abode of hantu (spirits) ; thus, like many
Indians, Malays are often reluctant to cut down
venerated trees, fearing the hantu will be vindictive.
Chinese, too, have spirit beliefs.
Minority Group Problems
Malaysia's multiracial society, where a variety of
languages are spoken, traditional patterns differ
vastly, and income disparities are great, has been
beset by both internal and external minority
problems.
Internal minority dissension , though existing
between most of the ethnic groups, is primarily
between the Chinese and the Malays, and far
antedates the September 1963 formation of Malaysia.
However, the Chinese-Malay conflict has come into
even sharper focus since then. In July 1964 , on the
occasion of Mohammed's birthday, more than 20
people died in a riot in Singapore. In early Septem
ber 1964, another riot broke out in Singapore be
tween Malays and Chinese, killing 10 and injuring
more than 60 people .
A significant undercurrent of the dissension be
tween Malays and Chinese is resentment on the part
of the Malays, who, according to government
officials, management, and labor leaders, feel them
selves to be at an economic disadvantage compared
to the more affluent Chinese . In most of Malaysia,
the Chinese are well established as shopkeepers or
tradesmen while the Malays are almost exclusively
in the poorer agricultural pursuits. In peninsular
Malaysia, however, the Chinese are tacitly excluded
from acquiring land in certain areas and a roughly
4 to 1 Malay -Chinese personnel quota is observed
in the public service .
There is some resentment on the part of the
Malays, particularly those in peninsular Malaysia,
who cling closely to the Islamic way of life ; they look
down on anyone who eats pork, especially the
Chinese. The Chinese continue to preserve their
own cultural heritage by maintaining their own
schools and by continuing to speak their own
language. As intermarriage between the Malays and
13
 Chinese is not common, assimilation by this means
is limited .
The government is attempting to promote and
maintain harmonious relations within Malaysia's
multiracial society through public pronouncements
on the importance of racial harmony, and exhorta
tions to leaders of all ethnic groups to work together
in confidence and good fellowship. The most sig
nificant influence toward national unity has been
Indonesia's political confrontation of Malaysia.
Confrontation, which has disrupted diplomatic and
trade relations and resulted in armed attacks
(particularly in Sabah and Sarawak and in western
peninsular Malaysia) by Indonesia on Malaysia, has
been an impetus to cohesion and unity among the
various groups in Malaysia.
Social Structure and Culture Patterns
The social structure and culture of Malaysia are
as complex as its diverse population. The Malayan
culture , whose origins are ancient by Western
standards, has been molded by Islamic and Hindu
influences. Two basic systems of social organization
exist : Adat temenggong, the predominant system ,
which is patrilineal, and adat perpateh, which is
matrilineal, cohesive , but confined almost exclusively
to the States of Negri Sembilan and Malacca. In
both systems, family and kinship ties and village
loyalty are the basic features. Customary Malay
village society is bound together by obligations of
filial respect and obedience, community attitudes of
mutual help and cooperation , maintenance of law
and order by the prestige of the village headmen
(penghulu) , the Islamic faith , and recognition of the
authority of the ruling sultans. Malays are loyal to
the village of their birth, and are frequently called
anak kampong (sons of the village ). The village bond
is stronger than hometown sentiment in the United
States ; for example , if a husband takes his wife so far
away from her village that weekly visits to the
village are not practical, she has grounds for divorce .
The Malay concept of family is the saudara dekat, a
unit embracing second cousins and all closer relatives.
Malays have a duty to help their saudara dekat; no
Malay who has an opportunity to place such a
relative in employment, for example , would be
expected to refuse. This important obligation can
often be financially onerous , and leads to a certain
amount of nepotism. Traditionally, they have
worked hard in rice cultivation, fishing, and similar
activities, but they are more interested in living than
in the acquisition of wealth . They have formerly
14
had little concern for education but interest in
education has increased greatly in the past several
years.
Among the many varied activities in Malay social
life, emphasis is placed on ceremonies of engagement
and marriage and various customary practices
associated with childbirth. As a rule , ceremonial
occasions are incomplete without feasts (kenduris)
accompanied by Islamic prayers (doa) . Islamic law
prevails in Muslim marriage ceremonies, which must
be witnessed .
The Malays place great emphasis on avoiding
embarrassment to oneself or to others . To act
toward an employer or employee (worker) in a man
ner which detracts from his social standing, so as to
belittle him in the eyes of his associates or society
generally, is to cause him to lose " face .” In work
operations , when an order or instruction is given to
an employee or worker and he is asked whether he
understands it, it is frequently a matter of “ face " for
him to say yes , whether he understands it or not.
“ Face" is of particular importance when repri
manding employees or workers, and to reprimand a
manager or supervisor in the presence of his sub
ordinates would seriously undermine his authority .
On these questions, Malays and Chinese are very
much alike .
Notwithstanding the Malay's attitude toward his
village and his relatives, he normally does not work
effectively in associations and cooperatives for his
economic improvement.
In traditional Chinese society , four classes existed :
( 1 ) The shih ( initially officers and subsequently
scholars ), consisting of chiên (officials) and shén shih
(gentry ); (2) the nung (agriculturalists ); (3) the
kung (artisans) ; and (4) shang (merchants, shop
keepers). In Malaysia, however, the mercantile
class is most important, above even public servants.
The Chinese who emigrated to Malaysia grouped
themselves by family, clan, dialect, place of origin
in China, and occupation . Whereas in China the
family was extended, with all members living to
gether and the senior male the family leader, in
Malaysia, with a few exceptions, Chinese households
tend to include only a husband, wife, their unmarried
children , and occasionally a supported parent of
the husband or wife . But even when members of
the extended family live apart, family ties remain
strong, and such family associations are powerful.
In clan, dialect , place of orgin , and occupational
associations, wealth and seniority combine to deter
mine leadership .
 Through interlocking directorships and overlap
ping memberships, Chinese clan, occupational, and
other associations are linked with the Chinese
Chamber of Commerce and Chinese schools . The
effect of Chinese kinship and other allegiances on
labor practices and labor conditions in Malaysia is
mainly twofold : They lead to nepotism extending
not only to second cousins, as in the Malay saudara
dekat, but also to members of the same clan and
those speaking the same dialect, and they are con
ducive to paternalism. A large number of Chinese
businesses, even if incorporated, are family enter
prises that employ relatives, either paid or unpaid .
In Sarawak , over half the Chinese are in and near
the three principal towns of Kuching, Sibu, and
Miri; however, there are substantial communities
of rural Chinese, mainly smallholders cultivating
rubber and pepper. In Sabah, over 60 percent of
the economically active Chinese are engaged in
agriculture or the lumber industry, and they are
predominant in the crafts, artisan employment,
and industry. The Chinese are hard workers and
profit-oriented ; they will accept piecework and in
centive pay to increase their earnings .
The Indians of Malaysia are mostly organized in
a number of Varna (classes) which have been trans
planted from India. For example, there are the
dhobi caste (laundrymen ) and the chettiar caste
(moneylenders) . Some, like the Chinese, belong to
the managerial, mercantile, and middle classes.
A large number of Indians take an active part in
the trade union movement , particularly in peninsular
Malaysia and Singapore. Caste limitations some
times affect marriage, food, and funeral rites.
Chapter IV. Education and Health
Education
The Malaysian Constitution provides that all
persons have the right to an education regardless of
religion , race, descent or place of birth (Pt . II , art.
12) . Singapore retains complete autonomy in
education, while Sarawak and Sabah retain their
existing educational systems, at least for the imme
diate future .
Malaysia is making vigorous efforts to raise the
literacy rates , which now range from about 25
percent in Sarawak and Sabah to about 50 percent in
peninsular Malaysia and Singapore. A significant
milestone in the effort to raise literacy, particularly
in peninsular Malaysia, is the introduction of the
Malaysian Indians may mention caste disparagingly,
but in choice of occupation and in working relation
ships, caste is not a barrier, and low caste Indians are
being educated and advanced in both government
and industrial employment .
Among the indigenous peoples of eastern Malaysia
are the Ibans of Sarawak , who do not have a rigidly
defined social class. Social prestige is measured in
terms of personal achievements such as the accumu
lation of wealth, knowledge of ritual, wisdom in
council and, formerly, head hunting. Marriages in
Iban society are monogamous and normally be
tween relatively close kin of the same generation.
Some Ibans, principally those who have become
Christians and received an education , work as school
teachers, clerks, and government servants. There
are no barriers other than education in their choice
of occupations and none in their work relationships.
The Dusuns (Kadazans) of Sabah, like the Ibans
of Sarawak , have become engaged increasingly in
rice culture and raising of cash crops. They are
Sabah's chief rice producers. Unlike the Ibans, the
Dusuns intermarry freely, particularly with the
Chinese .
Not only the Malays but Malaysians in general
are taking a growing interest in education. The
educated are influential; they are the government
employees, teachers, doctors, lawyers, accountants,
trade union officials, executives in commerce and
industry, and clerks in offices. In Malaysian class
attitudes, the educated occupy a relatively high
social position, while most other Malaysians are
ranked roughly as follows : shop clerks, industrial
workers, street vendors, and casual workers.
Comprehensive School System, which is scheduled to
provide free education to all children throughout
Malaysia for 9 years beginning in 1965. According to
government officials in Sabah and Sarawak, full
implementation of the Comprehensive School System
is " unlikely for some time” because of a lack of
facilities and teachers.
The British educational system prevails generally
in Malaysia. The primary schools have standards I
through VI, which approximate grades 1-6 in
United States primary schools. The secondary
schools have forms I through VI , which approxi
mately equal U.S. junior and senior high school
grades 7–12; the Chinese secondary schools have
junior middle schools (U.S. junior high school, grades
15
7–9) and senior middle schools (U.S. senior high
school, grades 10–12) .
In peninsular Malaysia, organization and admin
istration of education are shared between the
National Government and substate education offices
broadly as follows : ( 1 ) Educational policy in general,
secondary education , and teacher training are the
responsibility of the Ministry of Education; (2)
substate education offices are responsible for primary
(free through first 6 years) and trade school educa
tion . Financial provision for primary and trade
schools is by grants, according to need , from the
Ministry of Education to the substate education
authorities. In secondary schools, financial provi
sion is made by student fees (5 Malayan dollars per
month per student) and by State grants directly to
the boards of governors of the schools. In 1963,
peninsular Malaysia spent M$230,000,000, which
represented about 25 percent of its recurrent
expenditure budget.
There are four language media of primary and
secondary education in peninsular Malaysia: ( 1 )
Malay, (2) English, (3) Chinese, and (4) Tamil .
Chinese and Tamil languages at the secondary
TABLE 4. PENINSULAR MALAYSIA : NUMBER OF PRIMARY
AND SECONDARY SCHOOLS AND ENROLLMENT, JANUARY 1963
Number of schools Number of pupils
Type of school
Pri Sec Pri
Total mary ond Total mary
ary
school level are permitted only in schools not receiv
ing government aid. In 1963 there were a total of
4,758 primary schools with an enrollment of 1,178,258
(84 percent ), 481 secondary schools with an enroll
ment of 230,632 ( 16 percent)—table 4—and 50,539
teachers.
In Singapore, the Ministry of Education is
responsible for educational policy and administers
all government schools. The general policy of the
government is for primary education to be free
whether in a government or a government-aided
school, and for the parent to choose the language of
instruction-English, Malay, Chinese, or Tamil.
English has become compulsory as a second language
from the first year of primary school on , Malay as
the third language from the third year on . There
are also private schools, run by Christian or other
missions, guilds, or philanthropic groups ; many are
Chinese. Aid is granted to all schools which are
nonprofitmaking and conform to the standards set
by the Ministry of Education. The Singapore
Government spends roughly 25 percent of its
budget on education . In 1962 , total expenditures
for education amounted to M $ 90,897,692. Total
enrollment in January 1963 was 343,072 (table 5) in
about 450 primary schools and 86,973 in about 75
secondary schools. Although the exact number of
teachers is not available, the overall average pupil
teacher ratio in all language media taken together
Sec
ond was 30.5 per teacher in 1962 .
ary

TABLE 5. SINGAPORE : ENROLLMENT IN PRIMARY AND

All schools .- 5,239 4,758 481 1,408,890 1,178 , 258 230,632
Government SECONDARY SCHOOLS, JANUARY 1963
assisted . 4,621 4,374 247 1,302,999 1,147,856 155,143
Private .. 618 384 234 105,891 30,402 75,489
Total Primary Secondary
Malay - 2,309 2,309 528,152 524 , 003 4,149 enrollment
National Type of school
schools 2,204 2,204 515 , 244 511,320 13,924 Num Per
Num Per Num- / Per
Sekolah ber cent ber cent ber cent
Ra'ayat
(Muslim ) . 104 104 12,654 12,654
Private schools . 1 1 254 29 225
All schools . 430,045 100.0 343,072 100.0'86 , 973 100.0
English . 909 512 397 426,100 Government 230,069 53.5 185,062 53.9 45,007 51.7
235,416 190,684
National Government assisted . 186,679 43.4 149,202 43.5,37,477 43.1
schools
Partially
577 330 247 367 , 275 216,056 151,219 Private .. 1.11 8,808
13,297_3.1 2.6 4,489 5.2

assisted ... 3 3 348 348 Government . 230,069 100.0 185,062 100.0 45,007 100.0
329 179 150 58,477 19,012 39,465 English 178 , 147 77.4 148,901 80.5 29 , 246 65.0
Private schools.
Chinese . 22,348 9.7 11,689 6.3 10,659 23.7
84 386,653 350,854 35,799 Malay - 29,407 12.8 24,311 13.1 5,096 11.3
Chinese 1,290 1,206 167 161 .1
National Tamil . .8 6 (1)
schools . 1,003 1,003 339,136 339,136
Partially Government assisted . 186,679 100.0 149,202 100.0'37,477 100.0
assisted .-- 10 10 693 693 English 44,906 24.1 28,539 19.1 16,367 43.7
Private schools . 207 136 71 40,441 5,476 34,965 Chinese 140 , 273 75.1 119,306 80.0 20,967 55.9
Tamil . 1,500 .8 1,357 .9 143 4
Private night
schools. 70 57 13 6,383 5,549 834
Private 13 , 297 100.0 8,808 100.0 4,489 100.0
Tamil ... 731 731 67,985 67,985 English 9,094 68.4 4,900 55.6 4,194 93.4
National Chinese 4,203 31.6 3,908 44.4 295 6.6
720 720 67,649
-

schools 67,649
Partially 1 Less than 0.05 percent .
-

assisted .
Private schools 11 11 336 336 SOURCE : The Straits Times Press ( Malaya) Ltd. Malaysia Yearbook ,
1963-64 (Kuala Lumpur , 1964) , p. 450 .
1 Pupils in peninsular Malaysia secondary classes attached to national
schools, the secondary equivalent of the primary schools. In Sarawak , the Education Department of the
SOURCE : The Straits Times Press ( Malaya) Ltd. Malaysia Yearbook ,
1963-64 (Kuala Lumpur, 1964); Wang Gungwu , ed. Malaysia, A Survey . State government is largely responsible for policy
(Frederick A. Praeger, New York , 1964 ), p. 203; and Federation of Malay
sia , Monthly Statistical Bulletin of the States of Malaysia , March 1964 , p. 143. on education. Although it does not manage any

16
primary schools, it does maintain and administer
10 secondary schools. However, free compulsory
education does not yet exist in Sarawak. Tuition
fees fixed by the Education Department are charged
in both primary and secondary schools. The govern
ment's chief contribution to the provision of educa
tional facilities is through aid to local and municipal
authorities and voluntary agencies which have
general responsibility for primary education in their
areas . The principal voluntary agencies providing
education are Christian missions, Chinese boards of
management, and village committees.
mary schools are for the indigenous population ; the
vernacular is used in the lower grades and English
in the higher. The missions have rural schools for
non-Malay indigenous pupils which resemble the
local authority schools in curriculum and medium
of instruction ; nearly all their urban schools teach
English , but a few use Chinese . The schools estab
lished by the Chinese community use Mandarin as
the language of instruction . Village committee
schools are native primary schools. In addition ,
a few trading companies maintain private schools for
the children of their wage and salary earners.
Most nongovernment schools receive financial assist
ance in the form of grants-in - aid under a program
which came into force in 1956. In 1963 , the govern
ment spent an estimated M$ 13,419,000 for educa
tion .
In September 1963, there were 99,691 students in
916 primary schools and 14,779 students in 62
secondary schools (table 6) . Approximately 70 per
cent of the children of school age are enrolled in the
primary schools. Most of the secondary schools are
run by Christian missions or Chinese school boards.
The curricula , textbooks , general orientation , and
discipline of the mission schools and the Chinese
schools differ widely ; however, a uniform curriculum
is being introduced gradually and it has been agreed
that the medium of instruction in all aided schools
shall be English .
In Sabah, education policy is formulated by a
Board of Education which advises the government .
The board plans to provide a place in school for
every child of primary school age by 1971 , to extend
the provision of secondary education, especially in
rural areas, and to develop trade training. Educa
Most pri tion is free only in government schools.
Primary schools in Sabah provide for a 6-year
course in the three language media-English, Malay,
and Chinese. Malay and Chinese medium schools,
wherever possible, provide for the teaching of English
as a second language. The course of instruction is
the same in all schools . The secondary school
system provides a 3-year or 5-year course, mainly
in English. Children , particularly from rural areas,
whose primary education has not been in English,
enter secondary schools through bridge classes
which provide special courses adjusted to their
needs in different areas . The normal course is 2
years but pupils with adequate knowledge of English
can be promoted to form I of a secondary school
after 1 year .
A total of 63,482 children attended 489 primary
schools and 6,575 pupils were enrolled in 30 secondary
schools in Sabah in 1963 (table 7) ; these represent
slightly more than 70 percent of the estimated num
ber of children in Sabah within the age group 6-13
years . As government primary schools are situated
mainly in rural areas, children usually must travel
long distances and there is considerable absenteeism ,
particularly during the rainy season and on village

TABLE 6. SARAWAK : ENROLLMENT IN PRIMARY AND SECONDARY SCHOOLS , SEPTEMBER 1963

Primary Secondary
Type of school Medium of instruction
Number Number Number Number
of schools of pupils of schools of pupils

All schools.-- 916 99,691 62 14,779

Government and aided schools . English .. 2 711 10 1,335
Local authority-Native .. English . 513 36,194
Local authority - Other. Chinese 9 1 , 245
iii

Private committees English 5 1,024

9,142
11

Church or mission - Native . English 112 3 328

Church or mission - Other English . 21 8 , 224 10 3,417
Chinese . 1,777
!!

Church or mission - Other . 7

Church or mission-Other . Chinese converting to English . 3 657
Chinese committees - - Chinese .. 225 39,654
Chinese committees - Chinese converting to English . 2,137
Unaided schools
Private committees English 5 277 11 2,808
Church or mission .. English 8 755 6 938
Church or mission . Anglo -Chinese . 1 378
Chinese committees - Chinese .. 9 688 10 2,781

SOURCE : Malaysia Yearbook, 1963–64 (Kuala Lumpur, The Straits Times Press (Malaya) Ltd. , 1964) , p. 275.

17
 holidays. Most mission schools use English as the commercial colleges provide courses in commercial
language of instruction ; all are eligible to receive subjects, and evening vocational and technical
grant aid from the government's central education courses are held in various urban centers . There is
fund to cover staff salaries and allowances , and have an agricultural college near Kuala Lumpur , and a
received government aid to assist in meeting the marine ( navigation ) school in Kuching. In addition ,
cost of new buildings. Like the government pri the National Rural and Industrial Development
mary schools, the mission schools also are in rural Authority offers special courses for farmers and
areas. Chinese school courses are taught in Chinese . fishermen and for rural women at training schools in
New school construction is aided by building grants. Kuala Lumpur.
The number of Chinese schools and their enrollment Malaysia's determination to eliminate illiteracy is
reflect the Chinese preoccupation with education ; shown in the work of the Adult Education Division
many date back to the early days of settlement in of the Ministry of Rural Development, which
Sabah . The native voluntary and other schools are employs over 7,000 part-time teachers who instruct
built and supported by village committees in places about 12,000 classes ( 1963) with an enrollment of
where the people strongly desire education and the more than 320,000. One aspect of this training is to
government, because of financial limitations and encourage Malaysians to learn the national language;
lack of trained teachers , is unable as yet to provide about 68,000 non -Malay students took part in this
schools. They also receive grant aid for teachers' program in 1963 .
salaries, buildings, equipment, and other require Teacher training has been accorded priority by the
ments . The students of the native voluntary schools National Government. There are teachers' colleges
are exempt from paying fees . The few estate and in Kuala Lumpur, Penang, Kota Bharu , and Malacca,
private schools are run by estate managements for and two Malay teacher -training colleges , at Tan
children of their employees. The private schools jong Malim and Malacca . A language institute
cater to either underage children in the form of in Kuala Lumper trains specialist language teachers,
kindergarten classes, or older children who have and 12 training centers turn out teachers for primary
failed in academic or vocational work . schools . A department of education has been
established in the University of Malaysia, and in
TABLE 7. SABAH : NUMBER OF PRIMARY AND SECONDARY
SCHOOLS AND ENROLLMENT, 1963
Singapore teachers are trained at the University of
Singapore . In Kuching (Sarawak ), a teacher
Number of schools Number of pupils training center trains teachers of both English and
Type of school
Pri Sec .
Chinese. Primary teachers are also taught at Batu
Total Pri Sec
mary ond Total mary ond Lintang, near Kuching, and at Sibu's Sarawak
ary ary
Teacher Training College. At Tuaran (Sabah) ,
All schools ... 519 489 30 70,057 63,482 6,575 Kent Teacher Training College offers courses in
Government . 147 141
99 21
6 22,444 20,930 1,514
2,968
Malay, Chinese, and English to its teacher-training
Mission schools (aided) - 120 14,850 11,882
Chinese schools (aided ) 116 113 3 24,945 22,852 2,093 candidates . Gaya College in Jesselton (Sabah ) was
Native voluntary and
other schools . - 107 107 6,818 6,818 recently opened to provide both primary and second
Private estate schools . 29 29 1,000 1,000
ary teachers .
SOURCE : State of Sabah , Department of Education, The Annual Sum Higher education in Malaysia is offered in three
mary Report of the Department of Education, 1963 (Jesselton, 1964) , p. 23 .
well-established universities : The University of
Facilities for technical and specialist training Singapore, the Chinese Nanyang University in
exist throughout Malaysia. Advanced technical Singapore, and the University of Malaysia at
training is provided by the Technical College in Kuala Lumpur. The University of Singapore, with
Kuala Lumpur and by the Singapore Polytechnic an enrollment of 2,149 in 1962 , has facilities in arts,
Institute in Singapore. Singapore also has a rapidly science, law , education, medicine, dentistry, and
growing Vocational Institute offering courses for the pharmacy. The Nanyang University , with an
skilled trades ranging from 2 to 4 years in such fields enrollment of 2,110 in 1962, has facilities in arts,
as carpentry , masonry , electricity, drafting, machine science, and commerce . The University of Malaysia,
shop, mechanics, plumbing, radio, refrigeration , with an enrollment of about 2,000 in 1962, has
sheet metal, shipbuilding, and welding. There are facilities in arts, science, medicine, and engineering;
also a number of junior technical schools scattered it also has departments of agriculture , economics,
throughout peninsular Malaysia, and at Kuching in education, Malay , Chinese, Indian , and Islamic
Sarawak, and Jesselton in Sabah. A number of studies . There are no institutions of higher learning

18
in Sarawak and Sabah, although their governments
provide scholarships for university education over
seas . Overseas scholarships are also offered by
peninsular Malaysia and Singapore. Most of the
scholarship students are sent to Australia and Great
Britain .
Malaysia is also the recipient of educational and
training aid from outside agencies, principally in the
form of scholarships and financial assistance . Most
of the scholarships, amounting to several hundred
Malaysian dollars a year, are awarded under
Colombo Plan programs, chiefly from Australia ,
New Zealand, the United Kingdom, Canada, India,
Hong Kong, and Japan. Other contributors are:
The Commonwealth Education Scheme , for post
graduate and teacher training; the Asia Foundation ,
principally scholarships for Malaysians to study
abroad; Japan, scholarships for study in Japan;
Thailand and Germany, scholarships for study in
Japan; Italy, scholarships for study in Italy ; all
United Nations agencies, study opportunities abroad ;
and United States, travel and study abroad. The
scholarships are of two types : ( 1 ) Open award for
whatever the country's needs are ; and (2) awards for
specific purposes such as research in endocrinology .
Colombo Plan countries and other agencies have also
sent experts in health, education, statistics, geology,
transport, vocational trades, telecommunications,
and agriculture to Malaysia to provide assistance in
raising quality standards and to implement new
training programs.
The National Government has an apprenticeship
program in peninsular Malaysia, administered by
the Central Apprenticeship Board in the Ministry of
Labour, which is assisted by advisory trade commit
tees at national and regional levels. In 1963, 128
peninsular Malaysian employers were providing
apprenticeship training to 682 apprentices in me
chanical, electrical, printing, building, and plumbing
trades. The Singapore Government has proposed to
establish a Joint Advisory Council for Apprentice
ship Training to handle all such programs. Cur
rently, apprenticeship training in Singapore is
handled by some employers in motor transport ,
shipbuilding and repairing, and in fishing. Practical
work or training is conducted in the shops. Theo
retical training is given at the Singapore Vocational
Institute. The length of training depends entirely
on the trade field, but in most instances it lasts 5
years. About 300 apprentices are currently ( 1964–65
school year) in training in Singapore; roughly 40 to
80 graduate each year.
Malaysia ranks high among the countries of
Southeast Asia in education . Graduates of the
higher institutions of learning are in most fields as
well qualified as any in the neighboring countries.
The graduates of trade and vocational schools are
not skilled workmen however, and normally require
additional supervision and on -the- job training by
employers. On the other hand, graduates of the
Singapore Polytechnic Institute are usually well
qualified.
In Malaysia, the educational level of manual
workers is generally below the fourth grade, and
many are illiterate. Most lower clerical personnel
have not reached the equivalent of junior year in
high school. Most technical, professional, super
visory, and managerial personnel in industry have
completed at least a high school education and have
undergone additional training. The percentage of
university graduates is small .
Housing, Health , and Sanitation
The Malays are primarily a rural people. Their
villages characteristically consist of houses strung
along roads, footpaths, canals , rivers, or beaches ;
except in fishing villages, the houses are usually set
well apart and, in agricultural villages, generally
among trees, surrounded by cultivated
Generally , the houses are on stilts with walls and
floor of wood , and roof of thatch woven of nipa
palm. Stilts are used principally to provide ventila
tion, security against snakes, and against wild
animals, especially in areas near the jungle, and
protection against floods in low coastal areas and
near rivers and canals. Even in urban areas,
similar construction exists, although homes of
masonry, brick, and wood construction are evident
throughout Malaysia.
As in other parts of Asia, a rapid increase in
population has resulted in overcrowding, particu
larly in the urban areas, and especially in peninsular
Malaysia and Singapore. To overcome the shortage
of housing, the various governments have embarked
on ambitious housing programs. For example,
peninsular Malaysia has undertaken to provide
low-cost rental housing projects in both urban and
rural areas ; it has also enforced minimal housing
requirements on rubber plantations and mining
estates. Malaysian Government estimates place
housing needs at 10,000–20,000 new dwellings a year
to keep up with urban population growth in penin
sular Malaysia. Singapore undertook an ambitious
5 -year housing program (1960–65) to construct
19
52,000 units of public housing designed to accommo
date an estimated 300,000 people. These public
housing units are high-rise modern apartment
buildings with all utilities. Throughout Malaysia,
private enterprises and cooperative building societies
are also active in urban housing construction .
Malaysia is one of the few countries in Southeast
Asia with a protected and potable water supply .
In most parts, the government is responsible for
the supply of water, and most towns have piped
water. Current development programs include
provision and expansion of public water systems to
rural areas . Electricity is also available in most
areas, supplied chiefly by government -controlled
companies although some private companies also
provide it, particularly in the northern part of main
land Malaysia and some towns of Sabah. Sewerage
and drainage systems either exist or are under con
struction in most urban areas and Singapore and
Kuala Lumpur have modern sewage disposal sys
tems. However, for the most part, sewage is dis
charged into the open sea or rivers. Sanitation still
needs further development, principally because of
the many open drains that continue to exist and the
continuing population congestion (usually family
congestion in one room , one cubicle, or less) in low
income areas. In addition, where water and sanitary
facilities do not exist, a stream often serves all pur
poses: sewage disposal, laundry, bathing, and drink
ing. In the lower income areas , illiteracy also
militates against good sanitation habits such as the
need to wash thoroughly all food and food utensils .
Sanitation is no problem in the higher and middle
income and educated groups .
Rice is the staple food of the vast majority of
Malaysians. In addition, many other foods are
grown for local consumption, including tapioca,
sweet potatoes, watermelons, pineapples, and a
variety of distinctive Malaysian fruits such as ram
butan, durian, chiku, and duku. Malnutrition in
Malaysia is rare , confined principally to inhabitants
of remote hinterland areas. Where nutritious food
is not usually available and sanitation is poor, worm
infestation and infection of the alimentary tract
contribute further to malnutrition . Animal protein
is lacking in the diet, although government pro
grams are underway to increase both the quality
and the availability of livestock .
Malaysian health standards rank high in South
east Asia as a consequence of long-established health
and medical services. The overall death rate since
1957 has declined by 25 percent, and the current
death rate is about 9 per 1,000, one of the lowest in
20
Asia . Free modern medical treatment is available
to all who need it. Nevertheless, there are still
Malays , Chinese , and Indians who practice tradi
tional systems of medicine encompassing incan
tations, skin puncturing, bonesetting, and herbs,
which they often believe are more effective than
occidental medicine . The traditional attitudes are
changing , however, as the benefits of western medi
cine become obvious to more people .
There remain a number of endemic diseases such
as tuberculosis, malaria, and yaws, although these
are being brought increasingly under control by the
use of new drugs . Tuberculosis remains the most
serious problem , despite efforts to eradicate it.
(Many private employers have their employees X
rayed, either every 6 months or every year. ) Other
main diseases include : dysentery, diphtheria, enteric
fever, and fevers of unknown origin . Amoebic,
bacillary , and clinical dysentery and other parasitical
diseases, though seldom causing hospitalization, sap
the energy of workers and thus reduce their efficiency
and productivity. Precise data are not available
on fevers of unknown origin because many go un
reported , but they also reduce efficiency and some
times make sick leave necessary. Venereal disease
is also a problem, particularly in port areas, and
especially in Singapore. Employers can do little
to curb the incidence of venereal disease among their
employees other than by treatment in company
clinics .
Health facilities exist throughout Malaysia . In
peninsular Malaysia, government hospitals can
accommodate more than 20,000 patients. There are
three types of hospitals : ( 1 ) General hospitals
(which also have facilities for specialist consultants);
(2) district hospitals (which refer special cases to
the general hospitals) ; and (3) special institutions to
handle specific illnesses such as leprosy or mental
diseases. There are 69 general and district hospitals
with about 14,000 beds ; all have outpatient depart
ments . In smaller towns and rural areas , traveling
dispensaries make regular visits . The most modern
hospitals are in Johore Bahru, Penang, Malacca,
and Kuala Lumpur. In 1964 , peninsular Malaysian
medical facilities were staffed with about 1,130
medical practitioners, of whom 480 were employed
by the government and the remainder were in pri
vate practice. In addition, there were also roughly
600 dental surgeons.
In Singapore, there are 13 government hospitals,
including mental hospitals, a tuberculosis hospital,
and a leprosarium . Together they provide over
7,000 beds. In addition, there are 16 ( 10 in Singapore
city) full -time and 4 part-time outpatient clinics,
5 mobile (by road and water) dispensaries, and 50
government maternity and child welfare centers.
Singapore has 300 medical practitioners and 21
dentists .
Sarawak has six government general hospitals
with 954 beds, six mission hospitals (principally
Roman Catholic and Methodist) with 129 beds , a
mental hospital with 300 beds, a leprosarium with
400 beds, 33 outpatient dispensaries, and 10 mobile
dispensaries. In addition, maternity and child
welfare centers are maintained in the main urban
areas, and ophthalmic and dental services are pro
vided by the government. Sarawak has 63 medical
practitioners, and 440 midwives.
Sabah has two general hospitals (526 beds)
capable of handling all general medical and surgical
cases; one mental hospital; seven cottage hospitals or
infirmaries (small institutions) with a total of 561
beds, and capable of handling less serious cases ;
32 outpatient dispensaries; and two urban health
centers. Some religious missions (Anglican, Roman
Catholic, and Borneo Evangelical) and voluntary
organizations also maintain medical facilities, and
about 50 employers maintain dispensaries at their
places of employment. About 20 medical practi
tioners, 2 dentists , and a number of health tech
nicians were in Sabah in 1963. Maternity and
child welfare services are provided at 91 health
centers, including the urban health centers at
Jesselton and Sandakan .
In all of Malaysia, the expansion and develop
ment of rural health services has been given priority ;
there has also been a considerable expansion of
auxiliary services, such as dental clinics, midwifery ,
child welfare, and school medical services. Malaysia
is a recipient of considerable health aid from outside
Chapter V. Manpower Resources
Population and Labor Supply
Malaysia's population, estimated at 10,810,688
in December 1963 (table 8) , is growing at the rate of
about 3 percent per annum. There is some variation
in growth rate among the States: In Singapore it is
about 4.4 percent, including 0.9 percent due to
immigration, while in Sabah and Sarawak it has
probably just begun to exceed 3 percent following
stepped -up public health activities since about
1950.
sources, including the United Nations and its spe
cialized organizations, and Colombo Plan countries.
For example, in 1955 the World Health Organi
zation (WHO) and the United Nations International
Children's Emergency Fund ( UNICEF) began a
joint malaria control project with the Sabah Govern
ment. As of 1964 , large areas in Sabah had been
cleared of malaria and government officials believed
malaria could be completely eliminated by 1968.
Sarawak is also involved in a malaria eradication
program ; additional plans for action against malaria
are being worked out by the government in
association with WHO . Moreover, United Nations
organizations and the Colombo Plan countries, as
well as such organizations as the Edwina Mount
batten Trust Fund , the Sino-British Fellowship
Trust, and the Chest and Heart Association , are
providing medical and health scholarships, fellow
ships, and other training to Malaysians in Australia,
New Zealand , India , and the United Kingdom .
The government too has been carrying on extensive
immunization programs against polio , tuberculosis,
cholera, and smallpox. It has also begun a campaign
for recruiting medical practitioners from Common
wealth countries and from the Philippines and
West Germany to meet the requirements of expanded
health facilities . Facilities for training nurses
exist at all major hospitals throughout Malaysia.
In addition, the government has been operating the
Institute of Medical Research in Kuala Lumpur;
this has played a major role in the diagnosis, treat
ment, and prevention of malaria and other tropical
fevers, and has carried out important research on
nutrition and on the search for new and more
effective antibiotics. The policy of the govern
ment is to continue to improve and provide better
health facilities throughout Malaysia .
Malaysia's population is distributed unevenly.
Peninsular Malaysia, with a population density of
about 151 per square mile , has approximately 71.3
percent of the total population, a large part in
Perak, Selangor, and Johore -- all States which are
large producers of rubber, coconut, and oil palm .
Singapore, with a population density of about 8,033
per square mile, has approximately 16.6 percent of
Malaysia's population. Roughly three- fifths of
Singapore's population is urban . Sabah, with a
population density of about 17 per square mile,
21
 TABLE 8. MALAYSIA : ESTIMATED POPULATION , BY
pared to Sabah and Sarawak . Singapore has the
STATE AND SEX, DECEMBER 1963
highest concentration of urban dwellers, about 63
State Both sexes Male Female percent in 1960. Peninsular Malaysia is second, with
All Malaysia ---- 10,810,688 5,549,209 5 , 261,479
about 42.5 percent urban in 1960 ; Sabah's popula
Peninsular Malaysia . 7,703,520 3,945 , 476 3,758,044
tion was about 15 percent urban in 1960 compared to
Perak .-
Selangor
1,488 , 754
1,258,894
761 , 263
653 , 651
727,491
605 , 243
Sarawak's 12.5 percent in the same year. The wide
Johore . 1,161,070 603,913 557 , 157 variation in urban distribution can be attributed to
Kedah . 839 , 197 428,661 410,536
Penang ..
Kelantan .
689,188
610 , 629
351 ,650
304,337
337,538
306 , 292
the following causes : Singapore and peninsular
Negri Sembilan .
Pahang
459 , 797
381,609
237 , 175
198,312
222 , 622
183 , 297
Malaysia were the centers of early economic develop
Malacca . 366,564 182,803 183 , 761 ment ; the rugged and mountainous terrain and
Trengganu . 339,816 169 , 192 170,624
Perlis
Singapore
108 , 002
1,799,400
54,519
934,700
53,483
864,700
undeveloped hinterland, as well as the general isola
Sabah .
Sarawak .
498,031 259 , 972 238 , 059
400 , 676
tion from world trade routes, have impeded urbaniza
809,737 409,061
tion in Sabah and Sarawak; lack of extensive
SOURCE : Government of Malaysia, R. Chander, Kuala Lumpur, Septem communications in Sabah and Sarawak, compared
ber 5 , 1964. Statistics based on data supplied by the chief statistician ,
Singapore; the acting financial secretary , Sabah; the registrar general of
births and deaths for Sarawak; and the chief statistician of the States of
peninsular Malaysia .
to peninsular Malaysia and Singapore, has also re
tarded urbanization on these areas. However ,
has about 4.6 percent of Malaysia's population. urbanization has been increasing, for both social and
More than 40 percent of its population are con economic reasons (piped water, proper sanitation,
centrated on the west coast and around the main electricity, schools, communications, and shopping
towns of Jesselton and Sandakan . Sarawak, with a areas) , although in Malaysia it is not closely
population density of about 17 per square mile, has correlated with industrialization. There is small
approximately 7.5 percent of Malaysia's population. movement away from agricultural to industrial
The most important concentrations of population employment, unlike the pattern of urbanization
in Sarawak are in the main towns located on the in many Western countries. Generally, the rise
coast and in the riverine valleys which run inland of urbanization in Malaysia represents a shift of
from the coast. Thus, roughly 25 percent of the some elements of the agricultural labor force
Sarawakians live in the Kuching -Serian area. into such urban sectors of employment as hawking
Except for Kelantan , Malacca, and Trengganu, in of foodstuffs, driving taxis and pedicabs, and
peninsular Malaysia, males outnumbered females domestic service.
throughout Malaysia (table 8) . Since about 1946, The age distribution of Malaysia's population in
rural- urban migration has included increasing December 1961 is reflected in table 9. Of particular
numbers of women as restrictions were lifted against significance is the youthful composition of the popu
women seeking employment in urban areas. lation ; as of December 1961 , 54.5 percent were 19
Malaysia's population was estimated to be approx years of age or younger. This produces a rapidly
imately 42.1 percent urban in 1960. The degree expanding labor force and constitutes a major
of urbanization varies considerably ; peninsular challenge to the educational system , and to the
Malaysia and Singapore are highly urbanized com economy as a source of employment.

Table 9. MALAYSIA : ESTIMATED 1 POPULATION BY AGE GROUP, DECEMBER 1961

[ In thousands)

Malaysia Peninsular Malaysia Singapore Sarawak Sabah

Age group
Number Percent Number Percent Number Percent Number Percent Number Percent

All groups . 10,187 100.0 7,232 100.0 1,700 100.0 80_100.0 475 100.0

Under 5 years . 1,825 17.9 1,280 17.7 309 18.2 2 146 18.7 2 90 18.9
5-9 years . 1,590 15.6 1,128 15.6 259 15.2 128 16.4 75 15.8
10-14 years . 1,231 12.1 890 12.3 214 12.6 81 10.4 46 9.7
15-19 years . 907 8.9 665 9.2 134 7.9 69 8.8 39 8.2
20-29 years . 1,522 14.9 1,078 14.9 253 14.9 111 14.2 80 16.8
30-39 years . 1,134 11.1 781 10.8 199 11.7 92 11.8 62 13.1
40-49 years . 886 8.7 622 8.6 153 9.0 69 8.8 42 8.8
50-59 years , 626 6.1 448 6.2 111 6.5 44 5.7 23 4.8
60 years and over . 466 4.6 340 4.7 68 4.0 40 5.1 18 3.8

1 Data based on the latest official census or population estimate in each
area, updated to December 1961 ; net migration since the latest census is
not included.
2 Adjusted to allow for probable underreporting in the under -5 - years
age groups, mainly on the basis of Malayan experience.
22
Note : Because of rounding, sums of individual items may not equal
totals.
SOURCE: Report on the Economic Aspects of Malaysia by a Mission of
the International Bank for Reconstruction and Development under the
Chairmanship of Jacques Rueff, July 1963 , table II , Statistical Appendix.
 TABLE 10. Malaysia : LABOR FORCE, 1 BY INDUSTRY, 1960
Malaysia Peninsular Malaysia 2 Singapore 2 Sarawak Sabah

Industry Per Number Per

Number Per Number Per Number Per Number
cent cent cent cent cent

2,338,820 100.0 542,726 100.0 294,300 100.0 176,600 100.0

Total ... 461100.0
3,352,446
1,369 , 280 58.5 45,426 8.4 239,600 81.4 142,100 80.5
Agriculture, forestry , hunting, and fishing--- 1,796,406 53.6
Mining and quarrying - 66,158 2.0 64,350 2.8 1,808 .3
Manufacturing 242,954 7.2 3 149,270 6.4 75,484 13.9 11,500 3.9 6,700 3.8
ion 111,478 3.3 74,580 3.2 27,798 5.1 4,600 1.6 4,500 2.5
Building and construct . 6,328 1.2
Electricity, gas , water and sanitary services. 19,088 .6 12 , 760 .5
Commerce 373,615 11.1 214,720 9.2 137,395 25.3 13,800 4.7 7,700 4.4
82 , 280 3.5 56,839 10.5 5,600 1.9 4,700 2.6
Transport , storage and communications.- 149,419 4.5
5.5 5.7
Services 560,339 16.7 351,670 15.0 182,269 33.6 16,300 10 , 100
32,989 1.0 19,910 .9 9,379 1.7 2,900 1.0 800 .5
Others ...

1 Age 10 and over in Singapore and age 15 and over in others. SOURCE : Labour and Industrial Relations, Backgrounder No. ML 7
2 Data based on 1957 census figures raised by the percentage increase in (Washington, D.C., Embassy of Malaysia Information Service, Jan. 1,
population which was 10 percent in the former Federation of Malaya and 1964 ), p . 6. Federation of Malaysia, Department of Statistics, States of
13 percent in Singapore. Malaya , Monthly Statistical Bulletin of the States of Malaya, March 1964
3 This number includes a substantial number of workers engaged in ( Kuala Lumpur , 1964) .
handicrafts, rice milling, and rubber processing off estates.
There are no recent statistical data concerning The percent of the male labor force by occupation
industrial and occupational distribution, employ is shown in table 11. Except in Singapore, the
ment status, or income distribution, of the labor principal occupations are in agriculture. Data on
force in Malaysia . The latest data ( 1960) on the employment status for peninsular Malaysia in 1957
industrial distribution are given in table 10 . In are shown in table 12. Similar data for Singapore in
Malaysia, more than half (about 54 percent) of the the same year are given in table 13, and for Sabah ,
labor force is in agriculture, forestry, hunting, and in 1960, in table 14. Except for Sabah, employees
fishing. The structure of the labor force differs and wage earners are in the majority . There are no
among the various parts of Malaysia: In Sabah and data on employment status for Sarawak.
Sarawak about 80 percent are engaged in agriculture, TABLE 11. MALAYSIA : PERCENT DISTRIBUTION OF THE
forestry, hunting, and fishing, as compared with MALE LABOR FORCE , BY OCCUPATION
about 58.5 percent in peninsular Malaysia , and only
Peninsular Singapore Sarawak Sabah
8.4 percent in Singapore. Conversely, manufactur Occupation Malaysia ( 1957) ( 1960 ) (1960 )
(1957 )
ing and construction have occupied about 20 percent
100.0
of the labor force in Singapore, but only about 10 All occupations .. 100.0 100.0 100.0

percent in peninsular Malaysia and about 6 percent Professionals and technicians . 2.9 3.7 2.5 1.8
Managerial, administrative,
and clericalpersonnel.-- 5.0 13.4 .5 .6
in Sabah and Sarawak. Trade, transport, and other Sales personnel. 10.0 19.7 5.8 4.0
Farmers, fishermen , hunters,
services have accounted for about 70 percent of the and forestry personnel .
Miners and quarrymen ..
49.1
.1
6.9
0
74.0
.1
72.1
.1
employment in Singapore, about 29 percent in Transport personnel.
Craftsmen , production proc
4.0 9.7 2.3 3.2

peninsular Malaysia, and 13 percent in Sabah and ess workers.--

Service workers and Armed
17.7 32.2 10.1 12.4

Sarawak . Forces personnel.- 8.8 12.7 4.7 5.8

Others 2.4 1.7

8 Labor force includes employers, persons working on their own account, Note : Data have been limited to the occupations of males because of the
salaried employees, and wage earners and, so far as data are available, more generallack of comparability in female laborforce statistics.
SOURCE : United Nations, Compendium of Social Statistics : 1963, Series
unpaid family workers, and the unemployed. K , No. 2 ( New York , 1963) , pp . 393-394.

Table 12. PENINSULAR MALAYSIA: EMPLOYMENT STATUS OF THE LABOR FORCE, BY ECONOMIC SECTOR, 1957
Employers Wage and Family Not
Economic sector Total and self salary workers adequately
employed earners defined

All sectors.. 2,164,861 743,339 1 , 212 , 251 177,956 31,315

iii

Agriculture, forestry, hunting, and fishing 1 , 244,794 526,832 555,194 161,566 1,202
Mining and quarrying - 58,499 3,069 55 , 267 45 118
Manufacturing - 135,382 42,078 89,473 3,569 262
Construction .. 68,134 8 , 189 59,585 238 122
Public utilities .. 11,569 143 11,405 0 21
Commerce . 195 , 192 107,528 79 , 288 7,973 403
Transport, storage, and communication . 74 , 755 16,415 57,948 221 171
Services 319,745 34,201 281,469 2,789 1,286
Others 18,112 3,029 11, 249 463 3,371
Unemployed .- 38.679 1,855 11,373 1,092 24,359

SOURCE : International Labor Office, Yearbook of Labour Statistics, 1969 (Geneva, 1963) , pp. 38-39.

23
 TABLE 13. SINGAPORE : EMPLOYMENT STATUS OF THE LABOR FORCE , BY ECONOMIC SECTOR, 1957

Employers Wage and Family

Economic sector Total and self- salary workers Others
employed earners

All sectors .. 480 , 267 98,559 23,718 8,349

-
349,641

Agriculture, forestry , hunting, and fishing 40 , 151 15,742 13,306 11 , 103

!!!
Mining and quarrying - 1,601 56 1,535 10
Manufacturing - 66,754 12,624 51,692 2,438
Construction 24,628 3,032 21,460 136
Public utilities . 5,624 14 5,607 3
Commerce 121,533 47,171 66 , 247 8,115
Transport, storage, and communications 50,347 8,703 41,460 184
Services 159,184 11,007 146,479 1,698
Others 2,096 210 1,855 31
Persons seeking work for first time. 8,349 8,349

SOURCE : International Labor Office, Yearbook of Labour Statistics, 1963 (Geneva, 1963) , pp. 42-43 .

Of the various parts of Malaysia, only Sabah has
been experiencing a shortage of manpower ; this has
been manifest at all skill levels, although at the same
time large numbers of indigenous people have not
yet been attracted into the wage economy. The main
demand for manpower has come from agricultural
expansion, construction, and the lumber industry ;
as noted earlier, prior to the confrontation with
Indonesia, the supply for the agriculture and lumber
industries came largely from Indonesia.
In the other parts of Malaysia , there is lack of
employment except for professional personnel and
skilled craftsmen, and consequently, problems of
unemployment and underemployment exist. In
peninsular Malaysia in 1962 , according to the
Report of the Employment, Unemployment Survey of
the Malaysian Government, Department of Labour
and Industrial Relations, Office of Statistics , there
was an overall rate of unemployment of 5.2 percent
for males and 7.9 percent for females ; in all, 87,000
men and 60,000 women were unemployed.9 The
incidence of unemployment for males and females
in peninsular Malaysia, in nearly all age groups, was
highest in the large cities and towns and least in
the rural areas, even though 61 percent of all
unemployed men and 62 percent of all unemployed
women lived in rural areas , where the population
9 Actively seeking employment.
is about two and one-half times as large as the urban .
The incidence of unemployment in 1962 was highest
among persons in the 15–19 and 20–24 age groups,
many of whom (46 percent of unemployed males and
62 percent of unemployed females) had never had
jobs. The duration of unemployment was also
relatively high in 1962 ; about 31 percent of unem
ployed males and 29 percent of unemployed females
had been unemployed for over 1 year. The duration
of unemployment, and the high incidence of unem
ployment in the two youngest working -age groups
( 15–19 and 20-24 ), indicate that unemployment in
1962 was mainly structural, i.e. , that the long-term
growth of productive capacity and output had not
been fast enough by 1962 to absorb additions to the
labor force. Some minimal seasonal unemployment
existed in rural areas. About 2 percent of the
economically active population in 1962 were under
employed (worked less than 25 hours a week although
able and willing to work longer hours) . Neverthe
less, labor in rural areas was undoubtedly under
utilized , particularly in rice-growing areas where
cultivators often grow one crop a year and do nothing
during the slack season .
Singapore , with a primarily urban population
depending mainly on trade , services , and industry,
has also found it difficult to keep up with population
growth . In 1964, Singapore Government and labor

TABLE 14. SABAH : EMPLOYMENT STATUS OF THE LABOR FORCE , BY ECONOMIC SECTOR, 1960

Total Wage and Self

Economic sector Employers salary employed
earners and family
Number Percent workers

All sectors . 176,626 100.0 113,425

2,620_60,581
Agriculture, forestry, and fishing 142,113 80.5 976 34,417 106,720
Services 10,077 5.7 318 9,029 730
Commerce 7,734 4.4 830 3,785 3,119
Manufacturing 6,737 3.8 319 4,056 2,362
Transport and communications 4,657 2.6 48 4,246 363
Construction . 4,488 2.5 121 4,285 82
Others.com 820 .5 8 763 49

Source : Malaysia, Government Printing Department , State of Sabah Annual Report , 1963 (Jesselton, 1964) , p. 13.

24
officials estimated from 12 to 20 percent of the labor
force were unemployed, and another 12 to 20 percent
were underemployed.
Sarawak, with only limited economic develop
ment, has some unemployment in the larger urban
areas. Government, labor, and management officials
have estimated unemployment in Sarawak in 1964
at 3 to 5 percent of a labor force of about 300,000 .
Underemployment was somewhat higher , with
estimates of from 6 to 10 percent of the labor force
in 1964. In Sarawak, unemployment and under
employment are more manifest in small industries
which process primary produce for export and manu
facturing goods for domestic consumption . Many
of the latter which have sprung up recently face
competition in domestic markets with similar imports
from other parts of Malaysia and from highly
industrialized countries. Underemployment in
Sarawak is particularly evident in subsistence
agriculture .
Special Characteristics of the Work Force
A significant characteristic of the labor force in
Malaysia is its relative youth ; over half this group
are under 20 years of age, and only slightly more
than 10 percent are over 50. Moreover, the labor
force is generally unskilled . Of those who complete
their education and training, most are drawn to
white -collar occupations in the main towns ; con
sequently, the rural economy has a dearth of young
men with modern training. In addition, much of
the purely academic education of schools and colleges
is not followed by practical training. As a result ,
according to industrial and labor leaders, agricul
tural graduates frequently do not know farming ,
engineers are often ineffective in industry, and above
all, there is a dearth of practical technicians between
the levels of artisan and university graduate. These
factors have contributed to the low productivity of
traditional agriculture, which has resulted in
significant deficiencies of rice, contributing to
Malaysia's foreign exchange expenditure for this
staple food .
The ethnic makeup of the labor force is of partic
ular significance, especially by industry distribu
tion. The Malays, who make up most of the un
skilled worker category, are usually engaged
either in agriculture, forestry, hunting, and fishing,
or in services. However, the educated predominate
in government services, and are found in some
professions, but relatively few are engaged in com
merce. The Chinese are more widely distributed by
industry. The highest proportion of all employed
Chinese are in commerce, but Chinese are also
engaged in the processing of agricultural products,
manufacturing, construction, and, to a lesser extent,
in mining and quarrying, transport, storage, and
communications. About 66 percent of the economi
cally active population in tin mining are Chinese .
They make up most of the skilled worker category in
Malaysia and are predominant in the crafts and
artisan employment. More profit-oriented than the
Malays, the Chinese are also more highly motivated
toward productivity. The Indians are engaged for
the most part in the processing of agricultural
products (mainly as rubber tappers), in services,
commerce, transport , and storage and communi
cations. Indians constitute about one-half the
workers on the rubber estates and almost all the
personnel concerned with operation of the railways.
Although there is a trend toward greater racial
diffusion in the professions and industries, the
racial lines are still relatively clear.
Employment on a seasonal basis is insignificant
in urban areas of Malaysia, especially in peninsular
Malaysia, but in rural areas it is quite evident. In
peninsular Malaysia, in 1962, approximately 120,000
persons were involved in seasonal employment; this
is highest in September, during the harvesting
season , and lowest during the slack season in April.
In view of the absence of large numbers of estates,
and the prevailing immigration restrictions, there is
virtually no migratory employment in Singapore ;
there is little seasonal employment. In Sarawak ,
seasonal employment is evident because most of the
employed, other than Chinese, depend on agriculture
for employment . During slack periods, some of the
farmers work on rubber estates or sago plantations,
while the coastal people engage in fishing. Many
self-employed take up casual employment until the
harvest in the lumber industry or as rubber tappers.
Migratory employment is practically nonexistent,
particularly since the beginning of the political
confrontation with Indonesia in 1963. Prior to the
confrontation, Sabah, in particular, received un
skilled migrant labor from the neighboring areas of
Indonesia and, to a lesser degree, the southern
Philippine Islands. Nearly 3,000 such immigrants
entered Sabah during 1962. Nevertheless, there is
still some unorganized movement of labor between
Sarawak and Sabah , mostly Ibans and other in
digenous workers of Sarawak who migrate to Sabah
to work, chiefly in felling trees and jungle clearing,
for which they have a special aptitude. Also,
Sabah continues to receive skilled workers, mostly
25
Chinese from Hong Kong, Singapore, and Taiwan
(by the end of 1962, about 2,500 families had
migrated to Sabah for employment) . They are
mainly construction workers, mechanics, and pipe
fitters, and other artisans required for construction
of all types, road development programs, and the
lumber industry .
Labor mobility in Malaysia, other than the unor
ganized movement between Sabah and Sarawak, is
difficult to assess because of the lack of data . To be
sure, most of the present wage and salary earners in
government administration, the police force, trans
portation , and even in manufacturing, came from
the agricultural sector of the economy. In general ,
however, according to labor and government officials,
mobility is believed to be low, because people are
reluctant to leave their families and relatives. On
the other hand, as wage and salary earners gain
more education, training, and experience, they are
gradually moving into other occupations.
National Service System
Malaysia is heavily dependent for her national
defense on outside help. Under an extension of the
1957 Treaty of External Defense and Mutual
Assistance with Great Britain, British troops are
26
stationed in Malaysia in addition to Malaysian
Armed Forces .
As of mid-1964, Malaysia had an armed force of
about 20,000 men , including roughly 17,000 in the
Army, with the remainder about evenly divided
between the Navy and the Air Force. Men in the
18- to 54 -year group are subject to military service
according to law, but the policy has been to call up
only the unmarried and unemployed in only the 21
to 28-year age group. Military basic training lasts
for 2 months. For those who become regulars, the
Armed Forces provide training geared to civilian
occupations. For example, training is provided in
various craft, engineering, and technical fields,
including carpentry, plumbing, bricklaying, drafting,
vehicle mechanics, and communications. In addi
tion, Armed Forces personnel are sometimes sent to
England, New Zealand, and other areas for advanced
and specialized military training in technical and
engineering fields.
Normally the national service system has little
impact on the labor force beyond the inconvenience
caused by the basic training period . Even in the
current national emergency which results from the
confrontation with Indonesia, the gradual increase in
the Armed Forces thus far has not greatly affected
the labor force .
 PART II. GOVERNMENT AND LABOR

Chapter VI. Government

Public Administration
The public (civil) services in Malaysia, whether
civilian or military , 10 are nonpolitical ; they owe their
loyalty not to the party in power but to the Yang
di-Pertuan Agong ( Paramount Ruler) and the State
rulers. Members serve the governments (National
and State) irrespective of their political affiliation .
To ensure the impartiality of the public service, and
to protect it from political interference, a number of
Service Commissions are established under the
Constitution (Pt. X) to select and appoint officers,
decide on promotion, maintain discipline, and
transfer and retire public servants .
Each State has its own State civil service . Ar
rangements exist between the National and State
governments for delegation of Federal officials to
serve in State departments and for State officials to
serve in Federal or National departments (Constitu
tion , Pt . X ) .
Public servants are classified generally according
to four grades: Division 1 - administrative, profes
10 According to the Constitution (Pt. X, art . 132) the public service
includes: The Armed Forces; the judiciary; the general public service of the
Federation ; the police force ; the railway service ; the public service of each
state ; the joint public service common to the Federation and one or more
of the States, or to two or more of the States.
TABLE 15. PENINSULAR MALAYSIA : PUBLIC SERVICE EMPLOYEES, BY EMPLOYING AGENCY, JULY 1962
Total
Employing agency
sional, and other senior grades; Division II
executive assistants and other grades; Division III
clerks, laboratory assistants, teachers, and inter
preters; and Division IV-lower grades, including
postmen and process servers . In addition , there are
daily rated personnel, who include tradesmen,
semiskilled workers, and other manual workers.
Peninsular Malaysia's government and para
governmental personnel numbered an estimated
221,900 in July 1962 (table 15) ; the majority were in
Division III (43 percent) and in the group of daily
rated personnel (34 percent ). In 1962, the Singapore
Government employed about 34,000 officers on
monthly salary and another 10,600 personnel on
daily rates of pay. As in peninsular Malaysia, the
monthly paid officers are classified in four divisions,
with similar occupational breakdowns. The daily
rated government personnel are mainly manual
workers employed directly or indirectly on public
works. The Sarawak Government employed 5,411
personnel in 1963. The Sabah Government em
ployed 7,731 in June 1964 .
Civil service employment is generally preferred to
that in commercial and industrial firms because it
offers more prestige, greater security of tenure, more
opportunity for advancement, larger fringe benefits,
Divisions
Daily rated
I II III IV

Number Per Number Per Number Per Number Per- | Number Per Number Per
cent cent cent cent cent cent

All employing agencies . 221,900 100 4,137 2 5,142 2 96,445 43 41,306 19 74,870 34
iii

Government departments . 157 , 800 100 3,100 2 3,600 2 67,600 43 31,900 20 51,600 33
Police force .. 23,300 100 500 2 1,100 5 20,700 89 800 3 200 1
Railways 13,500 100 100 1 100 1 2,800 20 1,600 12 8,900 66
Central Electricity Board . 6,000 100 200 3 100 2 1,900 31 400 7 3,400 57
Municipalities.. 7,400 100 100 1 200 2 900 13 700 9 5,500 75
Penang Port Commission .. 1,700 100 28 2 30 2 300 20 872 50 470 26
Armed Forces, civilian employees - 11,900 100 100 (1) (1) (1) 2,000 17 5,000 42 4,800 41
Employees' Provident Fund . 300 100 9 3 12 4 245 82 34 11 0 0

1 Less than 1 percent or less than 100 . Malaya, Monthly Statistical Bulletin of the States of Malaya, March 1964,
p . 135.
SOURCE : Federation of Malaysia, Department of Statistics, States of
27
and almost equal salaries . The public service
throughout Malaysia traditionally has had a reputa
tion for honesty and efficiency.
Administrative Bodies Concerned With Labor
There is no national executive or administrative
body in Malaysia with complete jurisdiction over
labor matters throughout the country . The merger
agreement between peninsular Malaysia and Singa
pore provided for Singapore's autonomy in labor and
educational matters . The Federal Ministry of
Labour for Malaysia in Kuala Lumpur does have
jurisdiction over labor matters in Sabah and Sarawak
and is increasing its responsibilities in those areas.
However , labor legislation and administration in
Sabah and Sarawak remain largely at the State level.
The Federal Ministry of Labour in Kuala Lumpur
is described schematically in chart 1. The Minister
for Labour is responsible to Parliament in matters
pertaining to labor. Subject to the general policy
direction of the Minister for Labour , the affairs of
the Ministry are handled by the Secretary to the
Minister, assisted by two Assistant Secretaries.
The Secretary serves as coordinator of : the Depart
ment of Labour and Industrial Relations; Machinery
Department ; Central Apprenticeship Board ; and
Registry of Trade Unions . The Department of
Labour and Industrial Relations is divided into two
sections : one dealing with matters pertaining to
labor and enforcement of labor laws and the other
with industrial relations. Each of these sections is
headed by a Commissioner, and the two Commis
sioners function together as dual heads of the
Department . The Ministry of Labour has the
following functions :
1. All matters pertaining to the International Labor Organi
zation .
2. Labor legislation and enforcement.
3. Labor statistics.
4. Matters concerning employers' housing for workers.
5. Enforcement of the Employees' Provident Fund.
6. Employment exchange service .
7. Vocational guidance.
8. South Indian Labour Fund .
9. Direction and control of manpower in time of war.
10. Industrial relations .
11. Trade union training.
12. Wage councils .
13. Trade union registration and inspection .
14. National apprenticeship plan.
15. Inspection and certification of machinery .
16. Industrial safety, health , and welfare.
17. Examination of engineers, engine drivers (non-marine) ,
and dredge masters .
28
The Commissioner for Labour is responsible for
the enforcement of labor laws, and for dealing with
all labor matters other than those relating to indus
trial relations, generally through the various State
commissioners for labour, who in turn are responsible
for the general supervision of 27 field offices scattered
throughout peninsular Malaysia. The State com
missioners are assisted by assistant State commis
sioners for labour .
The functions of the Labour Section include :
Advisory To advise the Minister for Labour on labor mat
ters and legislation and to advise employers,
trade unions, employed persons, and others, on
labor conditions generally .
Judicial.. To settle claims for workmen's compensation
under the Workmen's Compensation Ordinance
of 1952 , or, if amicable settlement is not
possible, to bring such claims before an arbi
trator; to inquire into and decide disputes
between workers and their employers regarding
unpaid wages, wages in lieu of notice, and
maternity allowances .
Enforcement To inspect places of employment, to enforce the
Employment Ordinance of 1955, the Weekly
Holidays Ordinance of 1950, and the Em
ployees' Provident Fund Ordinance of 1951 ;
to administer the Workmen's Compensation
Ordinance of 1952 ; and to administer and
enforce the Rump Labour Code (concerning
housing, sanitation, and water supply) , the
Children and Young Persons' Ordinance of
1947, and the Wage Regulation Orders under
the Wages Councils Ordinance of 1947 , as well
as to assist the police in enforcing internal
security under the provisions of the Registra
tion of Labour Regulations of 1960.
Employment . To provide an employment exchange service ; to
collect information regarding conditions of
employment in the various industries ; to
investigate existing vocational training; and to
assist ex-servicemen in finding employment.
Statistics and infor- To prepare statistics relating to employment,
mation . wage rates, and hours of work; to prepare re
ports for the International Labor Organization.
Other Functions including repatriation to India of
South Indian workers entitled to free passage
under the South Indian Labour Fund
Ordinance .
The Commissioner for Industrial Relations func
tions through both sections of the Department of
Labour and Industrial Relations when dealing with
minor matters concerned with labor-management
relations . In addition , he works through certain
specialist industrial relations officers in the field
(in three regional offices as well as other field offices at
major industrial centers 11) when dealing with
major matters concerning labor -management rela
tions, particularly the prevention and settlement of
disputes and the introduction and maintenance of
11 There is a northern regional office at Penang with jurisdiction over
Penang, Perlis, Kedah , Perak , and Ipoh ; a central regional office at Kuala
Lumpur with jurisdiction over Selangor, Pahang, Kelantan , Trengganu ,
Kuala Lumpur, and Kuantan ; and a southern regional office at Johore
Bahru with jurisdiction over Johore, Malacca, Negri Sembilan , Johore
Bahru, and Seremban .
 Chart 1. Malaysia: Ministry of Labour, 1964

MINISTER FOR LABOUR

.
National Joint Departments of
Labour Advisory Labour in Sabah
Council and Sarawak
Secretary

Assistant

Secretaries (2)

Department of Central
Machinery Registry of
Labour and Industrial Apprenticeship Trade Unions
Relations Department Board

Labour Central Trade

Section
Committees

Commissioner (National)

Industrial Relations Advisory Trade

Section Committees
Commissioner (Regional )

voluntary joint machinery for negotiation and con
sultation. The specific duties of the Commissioner
for Industrial Relations include :
1. Liaison with the Ministry of Labour.
2. Direction of labor-management policy and procedure.
3. Close and continuous contact with labor -management
organizations on all matters affecting industrial relations.
4. Encouragement of joint consultation in industry, and
assistance in the establishment of joint voluntary negotiating
machinery for the regulation of wages and working conditions,
and machinery for the prevention and settlement of disputes.
5. Assistance, when necessary, in the prevention and settle
ment of trade disputes.
6. Administration of the Industrial Courts Ordinance of
1948, the Wages Councils Ordinance of 1947, and the Trade
Disputes Ordinance of 1949 (app. A ) .
7. Attendance at meetings of the National Joint Labour
Advisory Council ( see below) and advice to the Minister for
Labour on all matters concerning labor-management relations
which are under the purview of the Council .
The Machinery Department, headed by a Chief
Inspector of Machinery , has jurisdiction over the
administration of the peninsular Malaysian Machin
ery Ordinance of 1953 (app. A) . The ordinance is
concerned principally with the safety, health, and
welfare of employed personnel working around
machinery. The Machinery Department is also
responsible for examining engineers, dredge masters
and engine operators, and others in charge of
machinery, to determine their competency and to
certify their qualifications.
The Chief Inspector is authorized to investigate
accidents and hold formal inquiries into the circum
stances of an accident caused by defective machin
ery. For this purpose, the Chief Inspector has the
powers of a magistrate to compel attendance of
witnesses and to administer oaths. Inspectors from
the Machinery Department may , for administrative
29
purposes, work through the various field offices of
the Department of Labour. Their function is to
obtain employer compliance with the statutory
provisions on the construction , use, and maintenance
of machinery so as to ensure the safety, health, and
welfare of workers in factories.
The Central Apprenticeship Board is tripartite in
structure, consisting of representatives of govern
ment, employers, and employees or workers, ap
pointed by the Minister for Labour. The Board has
11 members: The chairman , who is in the Ministry of
Labour; one member (ex -officio ) nominated by the
Ministry of Education ; one member (ex -officio) who
is the Chief Inspector for Machinery : two members
nominated by private employers' organizations ;
two members representing government bodies em
ploying apprentices; and four members nominated
by workers organizations in government and private
industry. The Board : ( 1 ) Makes recommendations
to the Minister for Labour on what trades should be
declared apprenticeship trades ; (2) endeavors to
promote apprenticeship programs ; (3) advises the
Minister on all matters affecting apprenticeship ;
(4) keeps a register of apprenticeships under the
apprenticeship program ; (5) determines differences
arising out of the contract of apprenticeship ; and
(6) issues final certificates of proficiency to graduat
ing apprentices. The Central Apprenticeship Board
appoints a Central Trade Committee (national
level) for each “ declared ” apprenticeship trade.
Each committee consists of a chairman and an
equal number of representatives nominated by
employers' and workers' organizations. Each cen
tral committee advises and assists the Central
Apprenticeship Board on matters concerning mini
mum educational and age qualifications; suitability
of establishments for training of apprentices; the
term of apprenticeship; and the standards of pro
ficiency required for the Board's proficiency certif
icate. In addition to central trade committees , the
Central Apprenticeship Board also appoints, where
practical and necessary , Regional Advisory Trade
Committees , which consist of a chairman and an
equal number of representatives nominated by
employers' and workers' organizations. Each
Regional Advisory Trade Committee advises and
assists the Board on apprenticeship matters in the
trade or trade group which it represents, and also

Chart 2. Singapore: Ministry of Labour, 1964

MINISTER FOR LABOUR

Parliamentary Secretary
Permanent Secretary

Department of Labour
Commissioner

Deputy Principal Assistant Assistant Secretary Administrative Senior

Assistant Industrial Relations
Secretary for Labour Secretary for Labour for Labour Court I for Labour Court 11 Executive Officer
Section
Office
Inspection of places
administration and Apprenticeship
Hearing cases of employment
finance training and training
within industry ( Labour Ordinance of 1955 )
Implementation of Trade Union
International Labor Registry Section
the Workmen's
Organization matters Compensation
Training of disabled
Ordinance
persons
Monthly , annual , Factory
Labour statistics
and other reports Employment Inspectorate Section
and research
on labor matters services

Employment of Survey of working

Labour Legislation children and young conditions Seamen's
persons in Welfare Section
Indian repatriation
Inquiries on labor entertainment
and gratuities
laws
Immigration
30
endeavors to increase the efficiency of training in
its region .
The Registry of Trade Unions, headed by a Reg
istrar, functions principally as the agency administer
ing the Trade Unions Ordinance of 1959 (see app. A)
which provides for the establishment, registration,
inspection, and supervision of organizations not
only of wage and salary earners, but also of employ
ers . The Registrar of Trade Unions comes under the
portfolio of the Ministry of Interior, but he works
under the direction of the Ministry of Labour with
regard to government policies on trade unions and
labor-management relations ; he carries out his
statutory powers under the Trade Unions Ordinance
of 1959. The Minister for Labour is the appellant
authority against the decisions made by the Reg
istrar of Trade Unions in regard to such matters as
refusal or cancellation of registration of a trade
union.
The National Joint Labour Advisory Council,
established in 1957 , is the tripartite organ of top
level consultation between the government and
labor and management. It is composed of an equal
number of representatives of labor and manage
ment ; the Minister for Labour is the chairman .
Senior officials of the various departments in the
Ministry of Labour attend the meetings of the
Council as advisers , and the Ministry of Labour
provides it with secretarial services. The Council
functions mainly to advise the Minister for Labour
on : ( 1 ) All questions affecting labor and promotion
of industrial peace ; (2) matters in which employers
and workers have a common interest; and (3) ways
and means to stimulate regular consideration by
both management and workers on all matters
affecting the progress and well-being of industry.
The business of the National Joint Labour Advisory
Council is carried out through a standing committee
and other subcommittees, such as the Industrial
Relations Subcommittee and the International
Labor Organization Conventions Subcommittee .
The main purpose of the National Joint Labour
Advisory Council is to create, by increased use of
joint consultation on a tripartite basis , a repository
of knowledge and experience that can be used to
enhance labor-management relations . The principle
of joint consultation has been generally accepted by
labor and management, and tripartite organs of
consultation in the form of Joint Industrial Councils
or Joint Councils are in operation in various in
dustries. The government itself has led in estab
lishing such joint bodies . The National Whitley
Councils (one for government salaried personnel and
the other for industrial and manual personnel - see
Collective Bargaining, p. 46) have been functioning
since 1953. A Joint Consultation Council for the
Plantation Industries was established in 1955 .
Tripartite organs are also in operation for docks,
teachers , War Department civilian service, the
hydroelectric industry, iron mining, municipalities,
and several commercial and industrial establish
ments . The tripartite organs are voluntarily
established bodies operating under an agreed con
stitution which specifies their objects, functions, and
operational procedures. Most have the dual func
tion of negotiation and consultation; actually, one
of the principal functions of the Department of
Labour and Industrial Relations is to encourage
and assist in the establishment of bipartite bodies in
industry .
As in peninsular Malaysia , Singapore also has a
Ministry of Labour (chart 2) . The Minister for
Labour is responsible to the Prime Minister and the
Legislative Assembly on all matters concerning
labor. He is assisted by a Parliamentary Secretary
and a Permanent Secretary. The Permanent
Secretary for Labour is concurrently Commissioner
for Labour and head of the Department of Labour.
The duties of the Department of Labour include the
following:
1. To advise the government on labor matters.
2. To administer the Labour Ordinance, the Clerks'
Employment Ordinance, the Shop Assistants' Employment
Ordinance, and the Workmen's Compensation Ordinance .
3. To promote industrial relations by conciliation in labor
disputes and strikes.
4. To inspect factories and places of employment.
5. To inspect machinery, boilers, and safety devices for
the protection of workers .
6. To examine engineers in charge of engines and to issue
certificates of competency .
7. To inquire into and adjudicate upon disputes concerning
wages or conditions of employment of workmen, shop assist
ants, and clerks under the Labour Ordinance, the Shop
Assistants' Employment Ordinance, and the Clerks' Employ
ment Ordinance, respectively.
8. To settle claims for compensation under the Workmen's
Compensation Ordinance.
9. To arrange for the repatriation of South Indian Workers
and their dependents.
10. To administer trust funds on behalf of the dependents
of deceased workmen .
11. To run an employment exchange service.
12. To promote the training of skilled workmen for
industry.
13. To promote retraining and rehabilitation of disabled
workers.
14. To collect statistics on wage rates, employment, etc.
15. To advise employers and employed persons on labor
conditions generally .
31
 16. To apprise employers of complaints and representation
of workers or their unions .
17. To administer the Trade Unions Ordinance.
18. To advise and assist unions and employer organizations.
19. To prepare labor legislation .
20. To administer the labor provisions of the Children and
Young Persons Ordinance.
21. To promote supervisory training and apprenticeship
training in industry.
22. To promote labor relations between seamen and ship
owners and to oversee the welfare of seamen generally .
The Commissioner for Labour is assisted by : ( 1)
A Deputy Secretary for Labour with the following
duties : office administration and finance ; Interna
tional Labor Organization matters; monthly , annual,
and other reports on labor matters ; labor legislation ;
and inquiries on labor laws ; (2) a principal Assistant
Secretary for Labour with the following duties :
apprenticeship training and training within industry ;
training of disabled persons; employment services ;
employment of children and young persons in
entertainment activities and industrial undertakings;
and active participation in the Seamen's Registry
Board ; (3) an assistant secretary for Labour Court
I , and an administrative assistant for Labour Court
II , with similar duties of hearing cases under the
Labour Ordinance of 1955 (app. A) ; and (4) a
senior executive officer for enforcement whose duties
are : Inspection of places of employment under the
Labour Ordinance, the Shop Assistants' Employ
ment Ordinance and the Clerks' Employment
Ordinance ; implementation of the Workmen's Com
pensation Ordinance ; labor statistics and research ;
survey of working conditions ; Indian repatriation
and gratuities; and immigration (employment per
mits and passes) . Also in the Department of Labour
are the following: ( 1 ) An industrial relations section
manned by selected conciliation officers to handle
conciliation in industrial disputes ; (2) a trade union
registry section to administer the Trade Unions
Ordinance (app. A) for registering and controlling
trade unions; (3) a factory inspectorate section with
duties of administration of the Factories Ordinance
(app . A) and the examination of engine drivers and
boiler attendants ; and (4 ) a seamen's welfare section
responsible for matters pertaining to seamen’s
welfare and seamen's relations with employers. As
Singapore is a small and compact island , easily
accessible in all directions from Singapore city, it has
no regional labor offices; all labor activities are
carried on from the various labor offices at head
quarters .
Sarawak's Department of Labour , established
January 1 , 1960, is a small organization of approxi
32
Chart 3. Sarawak : Organization of the
Department of Labour, 1964
។1
1 Federal
1 Ministry of Labour Sarawak Government i
(Kuala Lumpur)
I
DEPARTMENT OF LABOUR
Commissioner
Deputy Commissioner
Labour Officer
District Officers
( Kuching)
mately 15 persons. Its duties, exercised through a
Commissioner, Deputy Commissioner, labor officer,
and inspectors , are to administer and enforce the
labor laws of Sarawak and to collect, interpret, and
report on labor statistics (chart 3) . In addition to
the permanent staff of the organization , district
officers in the various administrative divisions of
Sarawak act as deputy commissioners for labour
(except in Kuching where a labor officer has juris
diction ) because of a shortage of staff. The Com
missioner for Labour is the principal adviser to the
Sarawak Government on labor matters. The
Sarawak Department of Labour is under the juris
diction of the Federal Ministry of Labour in Kuala
Lumpur.
Labor law administration and enforcement in
Sabah are within the jurisdiction of the Department
of Labour and Welfare , with headquarters in Jessel
ton (chart 4 ) . As in Sarawak , the Department of
Labour and Welfare is under the jurisdiction of the
Federal Ministry of Labour in Kuala Lumpur. The
duties of the organization , exercised through the
Commissioner and assistant commissioners, are in
part as follows : ( 1 ) To implement the International
Labor Organization conventions ratified by the
 Chart 4. Sabah: Organization of the Department of Labour and Welfare, 1964
Federal 1
Ministry of Labour Sabah Government
(Kuala Lumpur)

DEPARTMENT OF

LABOUR AND WELFARE

Commissioner

Assistant Commissioners

Jesselton Sandakan Tawau Lahad Datu

1 Assistant Commissioner
1 Assistant Commissioner 1 Assistant Commissioner
1 Labour Officer
1 Labour Inspector
3 Labour Inspectors
1 Labour Inspector 2 Labour Inspectors
1 Employment Officer 1 Labour Clerk
1 Employment Officer
2 Outdoor Officers 1 Employment Officer
1 Outdoor Officer

Sabah Government ; (2) to safeguard and improve
working conditions; (3) to mediate , at the request of
either party, any dispute between labor and manage
ment; (4) to foster good relations with immigrant
labor in Sabah ; (5) to regulate the arrival and facili
tate the settlement of persons arriving in Sabah as
immigrant labor; and (6) to facilitate and preserve
free trade union organization and development .
Policy matters are handled by the Commissioner,
while the day-to-day activities, including industrial
relations and enforcement, are the repsonsibility of
the various assistant commissioners, their inspectors ,
and other supporting staff. Employment officers
handle all matters of immigrant labor (registration,
permits, etc.) and also provide assistance for em
ployers in need of manpower and for people looking
for work. “ Outdoor officers” assist the various labor
inspectors in the implementation and enforcement
of Sabah's labor laws. It is anticipated by Sabah's
ranking labor officials that the “ outdoor officers ”
will soon be changed to labor assistants . In addition
to the regular staff, the Department of Labour and
Welfare also receives the assistance of Administrative
Officers in charge of administrative districts, who
have ex -officio responsibilities for labor law and
administration in districts not serviced by Depart
ment of Labour and Welfare personnel.
Participation in International Organizations
Malaysia is a member of the following inter
national organizations :
United Nations (UN )
United Nations Educational , Scientific and Cultural Organi
zation (UNESCO)
United Nations International Children's Emergency Fund
( UNICEF)
World Health Organization (WHO)
Food and Agriculture Organization (FAO)
World Meteorological Organization (WMO)
International Labor Organization (ILO)
International Monetary Fund (IMF)
International Bank for Reconstruction and Development
(IBRD )
Iạternational Development Association (IDA)
International Finance Corporation (IFC )
International Civil Aviation Organization (ICAO)
Universal Postal Union
International Telecommunication Union (ITU)
Inter-Governmental Maritime Consultative Organization
( IMCO)
General Agreement on Tariffs and Trade (GATT )
Economic Commission for Asia and the Far East (ECAFE)

33
International Tin Council
International Rubber Study Group
The British Commonwealth of Nations
Colombo Plan
Association of Southeast Asia (ASA)
The United Nations and its specialized agencies
render technical assistance to Malaysia by assigning
experts to provide technical advice and assistance ;
furnishing equipment ; and awarding fellowships to
competent candidates chosen for advanced studies in
special fields.
Of particular significance is Malaysia's National
Productivity Center, established in February 1962
as a joint project between the United Nations
Special Fund and the government ; the ILO was
appointed as the executive agency to provide an
international expert staff on programing and oper
ation of the Center . Purpose of the National
Productivity Center is to train managers , super
visors, trade union executives, and others , as a
means to : ( 1 ) Raising standards of management ,
including supervision at all levels ; and (2) improving
efficiency of industrial operations with particular
reference to methods of increasing productivity,
improving quality output , lowering costs , and
developing constructive labor-management relations.
The Center serves as a forum where the organiza
tional and managerial problems of industry can be
discussed , and advises the government and private
industries on matters covering all aspects of pro
ductivity improvement techniques, including dis
semination of technical information about produc
tion methods. Responsibility for administering and
financing the Center rests with the Ministry of
Commerce and Industry , acting with the advice and
assistance of an Advisory Council composed of
representatives from government ministries , the
University of Malaysia, employers' organizations,
and trade unions.
In addition to a number of seminars on manage
ment, including production planning and control,
cost accounting , and personnel management, the
Center also provides seminars for trade union leaders
on such subjects as : leadership and human relations,
the supervisor as a trainer , group work and discus
sion leading , trade unions and productivity, labor
legislation , industrial relations , etc. Since the Center
was established , approximately 2,500 managers,
supervisors, trade union officials, and others have
participated in one or more of its activities .
34
The National Productivity Center has liaison with
the Asian Productivity Organization (APO) in
Tokyo ; the Economic Development Board in
Singapore ; the Ceylon Productivity Association ;
the Supervisory and Management Training Associa
tion in Singapore; the Universities of Malaysia and
Singapore ; and the Hong Kong Technical College .
As a member of the British Commonwealth,
Malaysia enjoys the advantages of economic , tech
nical, and cultural development among the partic
ipating members. As it is a member of the Associa
tion of Southeast Asia, which includes the Philippines
and Thailand , Malaysians have enjoyed the oppor
tunities of professional, technical, and administra
tive training offered in the associated countries.
International labor contacts are maintained
partly through the Government's membership in
the ILO , and partly through the International Con
federation of Free Trade Unions (ICFTU) and
several International Trade Secretariats (ITS) .
Malaysia has ratified the following ILO conventions :
Number Title
5 Minimum Age ( Industry)
7 Minimum Age (Sea)
8 Unemployment Indemnity (Shipwreck )
11 Right of Association (Agriculture)
12 Workmen's Compensation (Agriculture)
14 Weekly Rest (Industry)
15 Minimum Age (Trimmers and Stokers )
Medical Examination of Young Persons ( Sea )
17 Workmen's Compensation (Accidents)
19 Equality of Treatment ( Accident Compensation)
22 Seamen's Articles of Agreement Convention , 1926
29 Forced Labor
32 Protection Against Accidents ( Dockers)
45 Underground Work (Women )
50 Recruiting of Indigenous Workers
64 Contracts of Employment (Indigenous Workers)
65 Penal Sanctions (Indigenous Workers )
81 Labor Inspection
86 Contracts of Employment (Indigenous Workers)
88 Employment Service Convention , 1948
94 Labor Clauses (Public Contracts)
95 Protection of Wages
97 Migration for Employment Convention (Revised )
98 Right to Organize and Collective Bargaining
105 Abolition of Forced Labor
Malaysia has also benefited from Colombo Plan
technical assistance , particularly in agriculture,
cooperatives, education , medicine and health , rural
development, public works, and telecommunica
tions .
 Chapter VII. Legislation Affecting Labor
Constitutional Guarantees
The Constitution of Malaysia , promulgated Sep
tember 16 , 1963 , provides in Part II , articles 5-13 ,
specific guarantees of certain fundamental rights and
liberties for all Malaysians. These are : liberty of
person (no person shall be deprived of his life or
personal liberty except in accordance with law );
prohibition of slavery and forced labor; protection
against retrospective criminal laws and repeated
trials (persons cannot be punished for an act or
omission which was not punishable by law when it
was done or made) ; equality before the law and
equal protection of the law ; freedom of movement
and prohibition of banishment ; freedom of speech,
assembly and association ; freedom of religion ; right
to an education ; and right to property . The exercise
of such rights may be subject to restrictions, prin
cipally in order to strengthen national security or
guarantee public order .
Part VI, chapter 1 , article 74 (2) of the Constitu
tion is of particular significance, to wit :
Without prejudice to any power to make laws conferred on
it by any other article the Legislature of a State may make
laws with respect to any of the matters enumerated in the
State List (that is to say, the Second List set out in the
Ninth Schedule) or the Concurrent List.
Under the provisions of this article, Singapore has
complete autonomy in labor and social security
matters, including regulation of trade unions ;
industrial and labor disputes ; labor welfare (housing
of workers by employers ; employers' liability and
workmen's compensation ); unemployment insurance;
health insurance ; widows', orphans', and old-age
pensions; maternity benefits; provident and benevo
lent funds; and superannuation or retirement.
These subjects are clearly set out in the Second or
State List, 12 specifically in the supplement to the
State List for Singapore.
The Federal Constitution , Part XII , articles 152–
161H, includes special provisions concerning : The
Malays ; the ethnic groups in Sabah and Sarawak, as
regards public service, and use of English and native
12 Subjects for legislation , at national and State levels, are set out in
Federal, State, and Concurrent Lists. The Federal List includes external
affairs, defense, internal security, civil and criminal law, Federal citizenship,
finance, trade, shipping, communications, education , labor and social
security, and medicine. The State List includes Muslim law, land status,
local government, and supplements for Sabah and Singapore (on labor) on
special prerogatives. The Concurrent List includes social welfare, scholar
ships, town and country planning, and public health.
languages; Muslim education; and freedom of religion
in Sabah and Sarawak.
The Constitutions of the nine peninsular Malay
sian States, and Sabah , and Sarawak , contain
provisions safeguarding the position of their indigenes
in regard to public service in the State and the receipt
of scholarships and other similar educational or
training privileges.
Summary of Basic Labor Legislation
Labor legislation in Malaysia, listed in appendix
A, includes provisions regulating hours of work,
employment of women and children, health con
ditions, age of admission to employment, medical
treatment, written contracts, conditions of notice for
separations, statutory holidays with pay, workmen's
compensation , trade unions, industrial relations, and
provident or retirement funds. Some variation
exists in the scope of, and protection provided by,
labor legislation in the various parts of Malaysia.
It is more advanced in Singapore and peninsular
Malaysia than in Sabah and Sarawak . For the most
part, labor legislation on a broad base developed in
Malaysia after World War II, although laws con
cerned with labor, especially migratory labor
(Chinese and Indian) for rubber estates, had been in
existence at least in Singapore and peninsular
Malaysia, in the 19th century.13 There is no labor
code for Malaysia as a whole ; peninsular Malaysia
has a " Rump Labour Code.” Collective bargaining
is well advanced in Singapore and peninsular
Malaysia and is making increasing headway in
Sabah and Sarawak .
Generally, labor legislation sets the minimal
standards for working conditions in Malaysia .
Anything above the minimal standards is obtained
either from the employer where the employees and
workers are not organized , or through collective
bargaining where trade unions exist . For the most
part, minimum statutory requirements for working
conditions are not exceeded. Exceptions are some
of the large modern enterprises, especially in Singa
pore and peninsular Malaysia, which provide the
best working conditions in Malaysia.
13 On May 1 , 1823 , the Singapore Government passed an ordinance con
cerned with migratory workers from China and India and the terms of pay
for such workers. In 1882, Malaya passed an ordinance providing for
written labor contracts covering a term of 5 years. The Federated Malay
States introduced a labor code in 1912 which condensed all previous
enactments and extended greater protection to labor. From 1912 to
World War II, minor labor laws were introduced periodically.
35
Enforcement
Enforcement of the labor laws of Malaysia is in
the hands of labor inspectors or officers employed in
the enforcement divisions (or sections) in the
individual labor ministries or departments. En
forcement jurisdiction is set forth in the various
labor laws and pertinent regulations.
The labor laws are applied most effectively in
Singapore and peninsular Malaysia, partly because
of the more sophisticated development of trade
unions in these areas and their knowledge of labor
laws, and partly because of the organization of the
government agencies concerned with labor. The
Department of Labour in Singapore carried out 89
formal inspections, 232 followup inspections, and
865 special investigations on labor matters, from
January through August 1964. Inspection officers
from the Department of Labour and Industrial
Relations in peninsular Malaysia inspected 1,194
places of employment in August 1964. Nevertheless,
customary practice in Singapore and peninsular
Malaysia, according to labor leaders, often falls
short of the statutory requirements of labor laws,
particularly in the case of non-European firms, and
especially in the small establishments or enterprises
in rural areas where ignorance of the labor laws is
more widespread . There is no indication that the
labor laws in peninsular Malaysia or Singapore are
36
enforced any more strictly against foreign enter
prises than against local employers.
Labor law enforcement officials of peninsular
Malaysia and Singapore rely in large measure on
worker complaints, anonymous complaints, and
outside observers, as well as the government's labor
inspection services, for initiating investigations.
Government labor agencies in Sabah and Sarawak
have suffered from a shortage of inspection and
enforcement staff and have had to rely frequently
on district officers, acting in the capacity of Deputy
Labour Commissioners, for inspection and enforce
ment activity. Consequently, labor inspection,
enforcement of labor legislation, attention to safety,
health, and welfare measures in factories, and the
collection of labor data, have all remained rather in
abeyance in Sabah and Sarawak, particularly in the
rural areas . From March through October 1963 ,
Sarawak labor inspectors made 617 inspection
visits to 507 establishments .
As in peninsular Malaysia and Singapore, there is
no evidence that the labor laws are enforced any
more strictly against foreign enterprises than
against local employers. Similarly, the labor
authorities of Sabah and Sarawak must rely on
worker complaints, anonymous complaints, outside
observers, and the government's labor inspection
service, in addition to district officers, for labor law
enforcement.
 PART III. LABOR AND MANAGEMENT
Chapter VIII. Labor and Management Organizations
Labor Organizations
Malaysian trade unionism is largely a post-World
War II development. Prior to the war, trade
unions were confined to company unions organized
on a craft basis with limited membership, and to
mutual benefit societies whose aims were social
rather than industrial.13 After the war, trade
unionism was encouraged, especially in mainland
Malaysia and Singapore, and was assisted by union
advisers from British trade unions to help counteract
Communist influence. 14
Trade union law at present does not enable the
formation and registration of trade unions with
membership drawn from all over Malaysia. Al
though the Federal Ministry of Labour has respon
sibility for labor throughout Malaysia, except
Singapore, each part, i.e. , mainland Malaysia,
Sarawak, Sabah, and Singapore as well, have their
own laws governing the registration and control of
trade unions .
In peninsular Malaysia , the Trade Unions Ordi
nance of 1959 ( successor to the Trade Unions Enact
ment of 1940, as amended) constitutes the legal
framework for the formation and functioning of
workers' organizations. It provides for the registra
tion ( compulsory ) and supervision of trade unions.
It also provides certain rights and privileges to
registered trade unions, including the right to
organize for purposes of regulating relations between
employers and workers ; representing workers and
13 In 1940, the Government of the Federated Malay States passed the
Trade Unions Enactment ; however, no union was registered under this
law until 1946 , when the Trade Unions Enactment was extended to apply
to the whole of the Malayan Union . Under this law, it became compulsory
for all unions to register with the Registrar of Trade Unions.
14 There was considerable Malayan Communist Party influence in the
early stages of trade union development after World War II. By 1948, it
had almost complete control of the labor movement through the Commu
nist -dominated Pan-Malayan Federation of Trade Unions. Difficulties
with the Communists had grown to such proportions that in June 1948 the
government declared a state of emergency which continued until 1960.
(Josey, Alex. Trade Unionism in Malaya . Published by Donald More
and printed by Malaya Publishing House, Limited , Singapore, 1958. pp.
41-62 .)
employees in trade disputes ; promoting, organizing
or financing strikes or lockouts; and providing strike
pay . However, the Trade Unions Ordinance restricts
the right to form federations to trade unions repre
senting workers in similar occupations, trades, or
industries. The restrictions were introduced prin
cipally to prevent the unions from falling into the
hands of agitators having no connection with the
trade or industry concerned . Thus, the only trade
union center which exists in mainland Malaysia ,
the Malaysian Trades Union Congress (MTUC) ,
which draws its membership from trade unions of
workmen in a variety of trades, occupations, and
industries, does not qualify for registration as a
federation of trade unions , and hence does not enjoy
the right to bargain for its members. As it does not
qualify for registration as a trade union federation ,
it has been registered as a society under the Societies
Ordinance of 1949. At its 1964 convention, the
MTUC declared its intent to seek registration under
the Trade Unions Ordinance. Its application for
registration was denied by the National Government.
The MTUC has no affiliates outside peninsular
Malaysia.
The MTUC in 1963 changed its name from the
Malayan Trades Union Congress , which in turn had
changed its name from the Malayan Trades Union
Council in 1958 (the Malayan Trades Union Council
was established in 1950 as a means to unify all
Malayan labor) . Roughly 85 percent of the orga
nized workers in mainland Malaysia are affiliated with
the MTUC , whose primary goals stated in their
Constitution are : ( 1) Promotion of better living
standards; (2) improvement of working conditions;
(3) protection and extension of the concept of free
dom of trade union association ; and (4) provision of
facilities for acquiring knowledge and information
on trade unionism. Through its participation in
the National Joint Labor Advisory Council and other
official bodies, the MTUC exercises considerable
influence on the formulation of labor and trade
37
 TABLE 16. MAINLAND MALAYSIA: MEMBERSHIP OF
union policies in mainland Malaysia. MTUC activ
ities at the State level are carried on through divi REGISTERED ORGANIZATIONS, DECEMBER 1963
sional committees throughout mainland Malaysia Number of Percent
where local unions and branches of national unions registered Total age of total
Number of members organi member member

Eiiiiiiii

iiiiiiii
are represented . The MTUC affiliated with the zations ship ship of all
unions
non-Communist International Confederation of
All members .. 1 286 276,070 100.0
Free Trade Unions (ICFTU) in 1950. The MTUC
Under 100 . 99 4,429 1.6
has sponsored over 200 Malaysians for training

ii !
100–199 . 55 7,944 2.9
200-499. 59 18,010 6.5
abroad under the auspices of agencies such as the 500-999 . 29 20,032

i
7.3
ICFTU , ILO, Asian Labor Education Center, 1,000-1,999. 22 32,098 11.6
2,000-4,999 . 15 45,866 16.6
Colombo Plan, and the U.S. Educational Exchange 5,000-9,999. 2 16,530 6.0
10,000 and over 2 131,161 47.5
Program . The MTUC and its affiliates also conduct Federations of trade unions.. 3

trade union education programs at home. 1 Includes 14 employer organizations with 729 members.
Trade unionism in mainland Malaysia has grown Note : Similar data for 1964 were not available.
from 162 registered organizations with 70,037 SOURCE : States of Malaya, Annual Report of the Trade Unions Registry,
1963 (Kuala Lumpur , 1964) , p. 3 .
registered members in December 1948, to 293 reg
istered organizations with 301,359 dues-paying
members in August 1964, as shown in the following in union affairs by associating these with cultural
tabulation : and educational matters. In others, participation
Number of is limited to routine bread -and -butter issues and
registered Number of
organizations 1 members becomes manifest only on special occasions or at
1948 (December) 162 70,037 annual meetings.
1951 197 108,254 Indians constitute the largest proportion of trade
1954 .. 239 114,349 unionists ; they make up the majority of the labor
1957 260 222,865
1960 .. 262 184,627
force on the rubber plantations. Malay and Chinese
1963 286 276,070 membership in unions amounts to about 28 percent
1964 (August ) . 293 301, 359 and 19 percent respectively of total membership
1 Includes registered employer organizations. The 293 organizations in
(table 17) . Most Malays are still subsistence farmers
August 1964 consisted of 278 unions of wage and salary earners with 300,654 and have not yet taken extensively to wage employ
members, and 15 employer organizations with 705 members.
ment. According to union leaders, Chinese are still
SOURCE : States of Malaya. Annual Report of the Trade Unions Registry' somewhat reluctant to join unions.
1963 ( Kuala Lumpur, 1964) , p . 2 ; and Ministry of Labour, Monthly Report
of the Ministry of Labour, Malaysia, August, 1964 (Kuala Lumpur, 1964) , TABLE 17. MAINLAND MALAYSIA : UNION MEMBERSHIP,
Appendix A , p. 40.
BY SEX AND RACIAL ORIGIN, MARCH 1963
Of the 278 unions of wage and salary earners
registered in August 1964 , 185 , or 66.5 percent, Total
Racial origin Male Female
were unions of persons employed by government or Number Percent
government corporations; these had a total member
ship of 103,011 , representing 37.8 percent of the All groups. 241,505 100.0 186,038 55,467

total membership of all unions. The remaining 93 Indians ..

Malays .
124,591
68,105
51.6
28.2
88,918
59,135
35,673
8,970
unions were composed of wage and salary earners in Chinese 46,592 19.3 36,180 10,412
Others 2,217 .9 1,805 412
trade and industry. Almost half the total union
membership ( 131,000) as of 1963 were in two unions SOURCE : States of Malaya, Annual Report of the Trade Unions Registry,
1963 (Kuala Lumpur , 1964) , p. 7.
( table 16) .
Trade unions in mainland Malaysia are charac
terized by an educated leadership, by the fact that Three labor federations were included among the
they are both nonpolitical and nonreligious, and by 278 unions registered in August 1964 : The Federa
the relatively high percentage of the membership tion of Malay Teachers' Unions, Federation of
(about 23 percent-table 17) which is made up of Malaya ; Federation of Government Junior Staff
women . On plantations, women constitute nearly Unions, Federation of Malaya ; and Congress of
half the work force . Membership participation in Unions of Employees in the Public and Civil
union affairs is relatively limited , and it varies con Services ( CUEPAS ) . (See appendix B for affiliates
siderably from union to union . In some unions , the of the labor federations.) The CUEPAS , formed in
leaders make an effort to interest the rank and file 1958 , is the largest federation, having 66 unions
38
representing government personnel and, in Decem
ber 1963 , a claimed membership of about 40,000
persons.
Unions with a membership of 2,000 or more are
listed in appendix C. The National Union of
Plantation Workers (NUPW) , with a registered
dues-paying membership of about 120,000 and a
claimed total membership of roughly 200,000, is the
largest and strongest union in mainland Malaysia.
The NUPW has eight branches in different parts of
the country and employs over 140 full-time paid
officials . Formed in 1954 by merger of the Planta
tion Workers' Union, mainland Malaysia ; Malaya
Estate Employees' Union, Perak ; Johore Plantation
Workers' Union, Segamat ; Alor Gajah Workers'
Union ; and the Malacca Estate Workers' Union ,
the NUPW is affiliated with the International Federa
tion of Plantation, Agricultural, and Allied Workers
(IFPAAW) . It accounts for about 60 percent of
the membership in the MTUC .
the only union in mainland Malaysia with its own
research and industrial relations department and its
According to government and labor officials,
roughly 30,000 additional wage and salary earners
(as of October 1964) maintained nominal member
ship in various deregistered unions which are not
included in the 1963 and 1964 membership data.
Insofar as labor relations practices are concerned,
these unions are not legally operative . The distribu
tion of registered unions and membership in 1962 by
industry is shown in table 18. Of the total union
membership in 1962, about 36 percent were in
services, 16 percent in transport, storage and com
munications, roughly 12 percent each in manu
facturing and commerce, and the remainder in
public utilities, construction, agriculture, and mining
and quarrying. The last group had the lowest num
ber of organized workers — less than 1 percent.
TABLE 18. SINGAPORE : DISTRIBTION OF UNIONS AND
MEMBERSHIP , BY INDUSTRY, 1962
The NUPW is
Membership
Industry Number
of unions
Percent
Number

own printing press. In addition to its trade union All industries --- 122 189,032 100.0
activities, the NUPW is concerned with the social Agriculture and fishing 2 1,097 0.6
activities of its members, and has built branch Mining and quarrying
Manufacturing --
1
34
169 .1
11.7

i
22 , 203
Construction .
buildings and student hostels in various parts of Electricity , gas, water , and sanitary
3 4,489 2.4

mainland Malaysia for the use of members' families. services..

Commerce
7
10
7,496
21,399
4.0
11.3
It also carries out significant programs on worker Transport , storage and communications. 22 30,068 15.9
36.3
Services 38 68,626
education. The NUPW issues weekly and biweekly Others . 5 33,485 17.7

publications in Malay, Chinese, Tamil, and Telegu,

SOURCE: State of Singapore Annual Report, 1962 (Singapore, Printing
and a monthly publication, Union Herald, in Office, 1964) , p . 233 .
English.
In Singapore, the Trade Unions Ordinance of 1941 , Many Singapore unions, unlike unions in penin
as amended , provides the legal framework for the sular Malaysia, are politically oriented, with unions
formation and functioning of trade unions. They traditionally serving as a mass base of support for
are highly developed in Singapore and, like those in political parties. A number of union leaders are
mainland Malaysia, have grown rapidly, particularly active in politics. The Singapore National Trades
in membership and especially since 1952, as follows : Union Congress (NTCU) , formed in mid - 1961,15 is
Number of Number of the only central organization of trade unions in
unions members
1952 .. 122
Singapore. It is closely associated with the govern
63,831
1958 218 129 ,, 159 ing People's Action Party (PAP) and, as of October
1960 130 144,770 1964, had a membership of about 87,000 in some 50
1961. 124 164 , 462 affiliated unions.
1962 ... 122 189,032
1963 ... (1 ) 143,000 There are at least two national federations of
1964 (September 30) . 109 166,052 unions, the Public Daily -Rated Employees' Unions
1 Not available. Federation (which has 14 affiliates with about
NOTE : Since about 1960, the Government of Singapore has been encourag 20,000 members); and the Singapore Federation of
ing a policy of unification and strengthening of trade unions ; consequently
there has been a decrease in the number of unions.
SOURCE : Singapore Government Printing Office, State of Singapore 15 At the same time another national federation, the Singapore Asso
Annual Report, 1962 (Singapore, 1964) , p. 233 ; The Malay Mail, Malaysia ciation of Trade Unions (SATU) , was formed by pro-Communist elements.
Yearbook, 1963–64 ( Kuala Lumpur, 1964) , p. 455 ; and Singapore Labour A bitter struggle ensued between the NTUC and SATU for the support of
Department, Monthly Report , August 1964 (Singapore, September 1964) , the rank and file trade unionists. SATU supported the antigovernment
p. 12, left -wing Barisan Sosialis Party and was refused registration.

39
Services Unions (has at least 3 affiliates with about
25,000 members) .16 A list of Singapore's unions
registered in September 1964 is given in appendix D,
which also shows affiliations with the NTUC , the
nonregistered SATU, the independents, and inter
national affiliations. The federations mentioned
above are not included . The largest unions, accord
ing to official estimates and claimed membership
data, are as follows : ( 1 ) The Amalgamated Union of
Public Employees (AUPE) ,17 formed in 1959 , has
about 50 branches with a claimed membership of
about 30,000 and is affiliated with the NTUC as
well as with the Postal, Telegraph, and Telephone
International (PTTI) and the Public Services
International (PSI) ; (2) the Singapore Manual and
Mercantile Workers' Union (SMMWU) , formed in
1959 , has a claimed membership of about 20,000
and is affiliated with the NTUC and the Inter
national Federation of Commercial, Clerical, and
Technical Employees (IFCCTE) ; (3) the Naval
Base Labour Union (NBLU) , formed in 1947 , has
an estimated membership of about 10,000 and is
affiliated with the NTUC and the Singapore Federa
tion of Services Unions ; and (4) the Army Civil
Services Union (ACSU) , formed in 1947 , has an
estimated membership of about 10,000 and is also
affiliated with the Singapore Federation of Services
Unions .
Singapore's trade unions encompass various degrees
of skill and include various types of workers. Gen
erally , the unions' leaders are said to discuss union
matters with the membership and keep it informed
of pertinent labor activities.
The trade unions of Sarawak are given legal
status when registered with the Registrar of Trade
Unions under the provisions of the Trade Unions
Ordinance of 1948 , as amended . Trade unions have
developed slowly but steadily ; they are principally
urban unions and predominantly Chinese in com
position . As of October 1964, there were 40 unions
with a claimed membership of 14,068. Most are
small ; 23 had less than 100 members each ; 12 had
from 100 to 780 members each ; and only 4 had a
membership exceeding 1,000 (appendix E) . The 4
largest unions, the Sarawak Government Asian
Officers' Union (3,173 members), the Sarawak 1st
Division Workers ' and Labourers' Union ( 2,233
members) , the Sarawak Public Works Department
16 The Singapore Federation of Services Union is composed of unions
representing civilian employees of British military forces in Singapore.
17 Most of the affiliates of the former Singapore Federation of Unions of
Government Employees have merged with the AUPE.
40
Workers' Union (2,203 members) , and the Sibu All
Trade Employees' Union ( 1,661 members ), account
for about 66 percent of the total membership.
Roughly 40 percent of union members are in some
13 unions which government and labor officials
identify as under Communist influence or control.18
In Sabah, the Trade Unions and Trade Disputes
Ordinance of 1947 , as amended , made provision , at
least until April 1965, for the registration of trade
unions, and accorded the unions protection in respect
of acts resulting from trade disputes .
Unlike Sarawak, where trade unions appeared
from 1948 onward , Sabah has had trade unionism
mainly since 1962. As in Sarawak, trade unions are
principally urban and predominantly Chinese in
composition. According to government officials
and labor leaders, development of unions in Sabah,
as well as in Sarawak , is slow for, among others, the
following reasons : ( 1 ) The majority of the people
are engaged in agriculture as self-employed or
family workers and , among the indigenous workers
in particular, wage earning is generally resorted to
only as a part-time or seasonal occupation ; (2) the
number of migrant Indonesians who are not orga
nized ; (3) the low degree of industrialization ; (4)
absence of workers with experience in union organi
zation ; (5) the existence of traditional semiorganized
trade guilds among craftsmen , particularly the
Chinese ; and (6) differences of race and language
among the workers.
As of October 1964 , there were 25 employee unions
with a total membership of 8,365 (appendix F) .
Three unions , the Sabah Commercial Employees'
Union (2,002 members) , the North Borneo Civil
Services Union ( 1,898 members) , and the Sabah
Teachers' Union (894 members ), accounted for 57
percent of all union members. Sixteen unions, with
membership ranging from 100 to 400 members each,
had a total of 3,149 or 38 percent of the total
membership , and the remaining 6 unions accounted
for 422 members or 5 percent of the total member
ship.
The structure of Malaysian unions follows a
pattern similar to that of unions in western nations .
Officers include a general secretary and president, a
treasurer or financial secretary , an executive com
mittee , board , or council, and , in large unions,
branches or locals. Statutory provisions require that
officers be elected by secret ballot. Secret ballot is
also used in election of delegates to a federation of
18 The Trade Unions Ordinance of peninsular Malaysia was extended to
Sarawak and Sabah in August and April 1965 , respectively .
trade unions, and in decisions to : ( 1 ) Stop work ; (2)
impose a levy on the membership ; (3) amend a
union's rules; (4) amalgamate with other unions; (5)
join or form federations ; (6) change the name of a
union or federation ; and (7) dissolve a trade union .
Union discipline, which is governed by the consti
tution and bylaws of the various unions, tends to
vary considerably throughout Malaysia , particularly
in regard to payment of dues, although most consti
tutions specify certain time limits for nonpayment of
dues. The ultimate authority on dismissals from a
union generally rests with the union's executive
board , committee , or council. The unions are
financed principally by membership dues .
The National Government, as well as the govern
ments of Singapore , Sabah , and Sarawak , has gen
erally advocated the development of strong,
responsible, and democratic trade unions ; the
National Government and Singapore have encour
aged amalgamation of unions. Through the various
trade unions ordinances and pertinent regulations,
the National Government and the governments of
Singapore, Sabah , and Sarawak maintain strict
control over trade unions . All unions must be
registered with the Trade Unions Registrar, and
their branches are inspected periodically by him or
his representative , to ensure that they comply with
the statutory requirements on trade unions. Unions
are deregistered for noncompliance with the various
trade union ordinances and regulations.
Malaysian unions have seldom opposed efforts to
increase productivity, although they are likely to
protest dismissals, and likewise generally contend
that harder work justifies higher wages . Except in
Sabah 19 and Sarawak , the unions oppose importa
tion of foreign labor ,20 maintaining that while
unemployment exists in mainland Malaysia , Singa
pore , and to some extent in Sarawak , employers,
where possible, should draw from their own area's
labor supply. In this view, organized labor has the
support and cooperation of the area governments.
However, if a skill needed by an employer is not
available , as is frequently the case in Sabah, unions
will accept foreign labor, provided the employer
(especially in mainland Malaysia and Singapore)
agrees to train employees or workers from his own
area's labor supply as replacements. Generally,
19 Sabah unions have not reacted to importation of labor into Sabah
because it affects mainly two industries where there are no unions
plantations and construction .
20 Only highly skilled technicians or managers are given employment
passes by the National Government. Most government unions in Malaysia
are critical of the continued use of expatriates.
unions have not opposed conscription for national
defense ; on the contrary, and particularly since the
confrontation with Indonesia, they have encouraged
Armed Forces service . A number of labor leaders
favor the closed shop although there is no indication
that any have seriously sought it, and in most
cases, especially in Singapore and mainland Malaysia,
they are aware of the need to expand vocational
training to meet the skill requirements of the devel
oping industrial sector of the economy. Some of the
larger union organizations, such as the MTUC ,
have special committees on education, and have
worked closely with international bodies on workers'
education , training, and conducting labor seminars,
and in preparing and distributing educational ma
terials on trade union development and organization
and collective bargaining. ICFTU representatives
have visited Sabah and Sarawak and have conducted
short trade union seminars in eastern Malaysia .
Malaysian unions, particularly those in mainland
Malaysia and Singapore, use strikes and work slow
downs as means to obtain their goals . Trade unions
and their activities are generally given wide coverage
in the press. The general attitude toward trade
unions is perhaps best expressed in the labor legis
lation concerning them . Under the Constitution,
freedom of association implies both freedom for
individuals to form trade unions and freedom for
the unions to carry out their specified functions.
Management Organizations
Employers' associations in Malaysia can be
divided into two categories according to the legal
status for which they have opted. Some are reg
istered as “ trade unions” under the various Trade
Unions Ordinances (mainland Malaysia, 1959 ;;
Singapore, 1941 ; Sarawak, 1948 ; and Sabah , 1947) ,
while others are registered as societies under the
Societies Ordinances of the representative parts of
Malaysia where such ordinances exist. Some of the
employers' organizations are nationwide in scope,
while others are regional or local within the compo
nent parts of Malaysia .
The employer organizations registered as "trade
unions' under the Trade Unions Ordinances are
the counterpart of the unions of wage and salary
earners , and must comply with the standards
embodied in the Trade Unions Ordinances . For
example , in mainland Malaysia, section 2 of the
Trade Unions Ordinance of 1959 defines a trade union
in part as : “ Any association or combination of work
men or employers . . . , within any particular trade,
41
occupation, or industry , or within any similar trades,
occupations, or industries . . . having among its
objects ... the regulation of relations between
workmen and employers, or between workmen and
workmen , or between employers and employers ;
the representation of either workmen or employers
in trade disputes ; or the promotion or organization
or financing of strikes or lockouts in any trade or
industry or the provision of pay or other benefits
for its members during a strike or lockout.”
As of August 1964 , there were 15 employers'
organizations in mainland Malaysia (appendix G ) ,
with a total of 705 members , distributed as follows :
Number of
employer
organizations Membership
Total ... 15 705
Selangor . 6 449
Perak . 4 178
Penang - 3 45
I!
Malacca .. 1 19
Johore . 1 14
SOURCE : Ministry of Labour, Monthly Report of the Ministry of Labour,
Malaysia ( for the States of Malaya, Sarawak, and Sabah ), August 1964
( Kuala Lumpur, 1964) , appendix A, p. 40.
Membership in the above organizations includes
employers engaged in rubber production, tin mining,
stevedoring, bakeries , lighterage , printing , trans
port, lumber, construction, and firewood and char
coal . Membership and financial resources of the
employer organizations , their attitude toward labor
unions, and the nature of the problems they face
all vary from one industry to another . The three
principal employer organizations are : ( 1 ) Malayan
Planting Industries Employers ' Association
(MPIEA) ; (2) Malayan Mining Employers’ Associa
tion (MMEA) ; and (3) Federation of Malaya Em
ployers' Consultative Association (MECA) .
The MPIEA (registered as a trade union ) was
founded in 1947. By March 1964 it had 308 mem
bers , who operated 542 plantations with a total area
of 1,486,260 acres, and 11 factories . The MPIEA
represents the majority of the largest estates of the
plantation industries-rubber, oil palm, and tea.
Under MPIEA rules, the association is open only
to planters cultivating more than 50 acres, and its
Proprietors' Representatives Committee , which
speaks for plantations of 10,000 or more acres in
size , enjoys special rights.21 Most Chinese rubber
plantation owners have not joined the MPIEA .
21 The special rights of the Proprietors' Representative Com
include : absolute control over and power to decide all matters of policy
affecting the MPIEA and its affairs, and absolute control on all matters of
policy concerning the Executive Council's powers to settle and arbitrate
disputes between a member or members and an employee or employees
which are not required by law to be decided by a secret ballot of all members.
42
The Malayan Mining Employers' Association
(MMEA) , registered as a trade union and formed in
1947 by the tin producers in mainland Malaysia ,
represents most of the mines owned by European
and American companies and a number of mines
owned by Chinese. Approximately 90 percent of
the employers in the tin industry in mainland
Malaysia belong to the MMEA. The European and
American companies, except for a few open -cast
mines (similar to quarries) , extract tin ore by means
of dredges , and pay wages . The Chinese extract
tin ore almost entirely by the open -cast method ,
and provide remuneration on a semicooperative
system linked to output. In 1964 , there were about
700 tin mines in Malaya (including some 70 with
dredges ), employing approximately 30,000 workers.
The Federation of Malaya Employers’ Consulta
tive Association (MECA ), registered as a society
under the Societies Ordinances of 1949 and formed
in 1960, had a membership, as of October 1964, of
215, including employers in banking, insurance, the
oil industry, catering and entertainment, profes
sionals (public accountants), motor transport, sales
and secretarial personnel in commercial establish
ments, engineering, retail distribution, and light
industry. The MECA is concerned almost exclu
sively with industrial relations and advises its
members on recognition of labor unions, on negotia
tions and wording of collective bargaining agree
ments , and on all matters where the interests of
employer members are not in the jurisdiction of the
chamber of commerce . The MECA also provides
members with information and advice on legislative
matters concerning employers, and promotes and
encourages consultation and exchange of views
between members or groups of members on prob
lems of common interest . It makes representa
tions to the government on legislative and other
matters which affect members as a whole, and
provides a liaison with other associations or similar
bodies on matters of interest to employers at all
levels. The MECA can only advise its members ;
as a society under the Societies Ordinance, it does
not negotiate with unions of wage and salary
earners .
Together with the MPIEA and the MMEA, the
MECA is a member of the Malayan Council of
Employers' Organizations (MCEO) , an organization
recognized by the government as representing all
organized employers in mainland Malaysia. As
members of the MCEO , representatives of the
various employer organizations sit on government
committees, including the National Joint Labour
Advisory Council (chart 1 ; the Council advises the
Minister for Labour on matters affecting labor) ,
where 7 out of the 19 employers' representatives are
nominated from the MCEO . Representatives of the
MCEO also sit on the Advisory Council of the
Malayan Employment Exchange Service.
In addition to the main employers' organizations
discussed above , there are a number of other em
ployer organizations also significant in employer
activities ; they include the Malayan Commercial
Banks Association, and the various chambers of
commerce throughout mainland Malaysia. Many
employers do not belong to any employer associa
tion, but deal with their labor matters individually.
In Singapore, there were 54 employers' organi
zations (appendix H) with a total membership of
6,076 as of August 1964. Only the Singapore
Employers' Federation is concerned with industrial
relations. Founded in 1948 as the Federation of
Industrialists and Traders in Singapore (the current
name was adopted in 1952) , the Singapore Em
ployers' Federation had about 340 members employ
ing about 42,000 persons as of October 1964 ; it is
registered as a trade union under the provisions of
the Trade Unions Ordinance of 1940. The objec
tives of the Federation are to : ( 1 ) Advise members on
industrial relations; (2) appear in the arbitration
courts on behalf of its members ; (3) advise upon
forms of collective contracts between members and
employees ; (4) encourage and undertake by arbitra
tion , conference, or similar procedure , the settle
ment of disputes either between members or between
members and employees ; (5) represent the members,
or any one of them, in any trade dispute in which
they, or he, may be directly or indirectly interested,
including representation on any wages, conciliation,
or other board authorized by any law in force in
Singapore ; and (6) promote or oppose legislative
and other measures which affect or are likely to
affect employers engaged in - or connected with
industry or trade.
In addition to the Singapore Employers' Federa
tion , employer organizations include the following:
( 1 ) The Singapore Manufacturers’ Association, with
representatives from all the chambers of commerce,
which was formed to bridge the communal and
sectional interests of the various employers and
their organizations ; (2) the Chinese Chamber of
Commerce; (3) the English Chamber of Commerce ;
and (4) the Indian Chamber of Commerce .
In Sabah, as with unions of wage and salary
earners, employer organizations are small and few
in number. There were two registered ( under the
provisions of the Trade Unions and Trade Disputes
Ordinance of 1947 as amended) employer organiza
tions in Sabah in October 1964:22 ( 1) The Incor
porated Society of Planters, with 46 members; and
(2) the Commerical and Agency Houses Association
of Sabah , with 13 members. Neither organization
has a permanent committee on industrial relations.
However, temporary committees on industrial
relations are established from time to time to
advise members on the latest trends in this field and
on the forms of collective bargaining agreements,
and generally to act as intermediaries in industrial
relations matters affecting labor and management.
In addition to these two employer organizations,
other management organizations include the follow
ing : ( 1) The Sabah Chamber of Commerce ; (2)
the Sabah United Chinese Chamber of Commerce;
and (3) the Chinese Chambers of Commerce in the
various towns of Sabah-all affiliated with the
Sabah United Chinese Chamber of Commerce.
The purposes of the chambers of commerce are
generally the same as those of similar organizations
elsewhere. Representatives of employer organiza
tions (usually four) are called upon by the govern
ment from time to time to provide advice on indus
trial legislation and on labor administration
generally.23
The employers in Sarawak have one organization,
the Sarawak Employers' Consultative Association,
which was registered under the Societies Ordinance,
chapter 107 of the Laws of Sarawak, on June 1 , 1963 .
The association provides consultative services to
its members on labor legislation and industrial
relations, and has advised its members on the
preparation of collective bargaining agreements.
Sarawak also has a number of chambers of commerce ,
including the following : ( 1 ) The Sarawak Chamber
of Commerce, constituted mainly of European
entrepreneurs in the state ; (2) the Chinese Chamber
of Commerce ; and (3) the Indian Chamber of Com
merce . The chambers of commerce have no indus
trial relations committees.
Generally, lockouts are not common in Malaysia,
although employers do occasionally resort to them,
especially in mainland Malaysia and Singapore.
22 Since October 1964, a Sabah Employers' Consultative Association
(SECA) has been formed, as well as two additional management organi
zations: ( 1) Sabah Planting Industry Employers' Association ; and (2)
Sabah Timber Industry Employers' Association. Both are affiliated with
the SECA .
23 Labor advisory boards are established periodically on a tripartite
basis with equal representation (four members each) from government,
employers, and workers. The board sits under the chairmanship of the
Commissioner for Labour and Welfare . It provides advice on industrial
legislation and on labor administration generally .
43
International Ties
Malaysia is a member of the International Labor
Organization (ILO) and sends delegates to the ILO
conferences held in Geneva . At the 48th session of
the ILO conference held from June 17 to July 9,
1964, Malaysian workers' representatives served on
the ILO's committees on Social Security, Employ
ment Policy, and the Application of Conventions
and Recommendations. The MTUC of peninsular
Malaysia has been affiliated with the ICFTU since
1950. Several Malaysian trade unions are affiliated
with International Trade Secretariats, including: ( 1 )
The International Transport Workers' Federation
(ITF) ; (2) the Public Services International (PSI) ;
(3) the International Federation of Plantation ,
Agriculture, and Allied Workers (IFPAAW) ; (4)
the International Federation of Journalists (IFJ) ;24
(5) the International Federation of Petroleum and
Chemical Workers (IFPCW) ; (6) the International
Federation of Commercial , Clerical and Technical
Employees (IFCCTE) ; (7) the Postal, Telegraph
and Telephone International (PTTI) ; and (8) the
International Federation of Free Teachers Union
(IFFTU) . (See section on Labor Organizations and
21 National Union of Journalists, Petaling Jaya, Selangor, Malaya (not
included in appendixes B through F because membership was under 2,000 ).
Chapter IX. Industrial Relations
Collective Bargaining
Collective bargaining is widespread in mainland
Malaysia and Singapore ; it is only beginning to be
practiced in Sabah and Sarawak .
In mainland Malaysia, there are no laws or regu
lations at present governing collective bargaining or
joint consultation.25 These are on a voluntary
basis ; the parties are free to make their own arrange
ments and to decide for themselves the contents of
collective agreements, subject, however , to the pro
viso that the terms of agreements must not be less
favorable to the workers than the standards laid
down by legislation on working conditions. A major
function of the National Government is to provide
conciliation and mediation services in the event of
25 Some legislative discussion is being held on a proposed Collective
Agreement (Extension) Ordinance, to provide for extending the application
of the terms of a collective agreement to employers and workers who are
not members of the employers' organization or trade union which negotiated
it.
44
the various appendixes for specific affiliations.)
Malaysian labor's participation in the various inter
national bodies also includes receiving assistance in
the form of advisers, and educational and training
grants, fellowships, and seminars on trade unions,
industrial relations, and related matters, and also
printed material from the ICFTU and ITS on labor
matters.
Management organizations, especially in penin
sular Malaysia and Singapore, have international
affiliations. For example, the Malayan Employers'
Consultative Association (MECA) is affiliated with
the Industrial Welfare Society and the Overseas
Employers' Federation, both in the United Kingdom,
and, through the Malayan Council of Employers'
Organizations (MCEO ), with the International
Employers' Organization. The Singapore Em
ployers' Federation has a continuing liaison with
other employer bodies in various parts of the world,
including the Antigua Employers' Federation and
the Fiji Employers' Consultative Association. Usu
ally the liaison is maintained by the exchange of
minutes and correspondence between the organiza
tions. The tripartite delegations sent to the ILO
conferences in Geneva invariably include, on the
employers' side, representatives from the leading
management organizations .
labor disputes ; to encourage and assist in the forma
tion and maintenance of joint voluntary negotiating
and consultative bodies within the industries and ,
where necessary , to reinforce and supplement the
arrangements which labor and management have
developed for themselves. Joint labor-management
bodies consist of a joint board , committee , or council,
composed of representatives of trade unions and
employers' organizations, and set up on a voluntary
basis . Such boards, committees, or councils in
mainland Malaysia exist at State and substate levels
in the planting industries under the auspices of the
MPIEA and the plantation unions . In the absence
of any established joint machinery, discussions
between management and union usually take place
on an ad hoc basis .
The main purpose of the joint negotiating bodies,
such as the National Joint Consultative Council for
the Planting Industries, is to discuss mutually, and
reach agreements on, wages, conditions of employ
ment , and other matters of common interest to the
employers and their workers. In addition, they in
terpret and revise agreements as and when necessary.
The decisions of the voluntary joint bodies are
reached by mutual agreement and are not enforceable
by law. In addition to establishing standard rates
and conditions of employment , the collective
agreements made under the voluntary joint negoti
ating machinery usually include provisions for
referring issues of disagreement to an independent
party for decision . The provisions for arbitration
are voluntary arrangements made by the mutual
consent of both parties. The decisions given by the
independent party are not legally binding and their
acceptance, like the mutual agreements, is also
voluntary.
In mainland Malaysia, collective bargaining may
be confined to the employees or workers in a single
establishment or may cover all the establishments of
a single employer. It may be conducted locally in
individual enterprises, on a state or regional basis ,
in an industry or occupation . Most unionized
workers are covered by some form of collective agree
ment . One contract, on plantations, covers some
200,000 workers.
In most European plantation industries, collective
bargaining takes place at the national level between
MPIEA, the central employers' association, and the
NUPW. In 1964, five collective agreements, signed
in July, were in force covering wages (for tappers) ,
holidays, pay for periods in hospital, and housing
allowances , and an interim agreement calling for a
joint working party of labor and management to
examine the possibility of extending the fixed
weekly day of rest (set for Sunday, subject to further
review ) to all plantation workers . During the
interim, the provisions on days of rest contained in
the February 1962 agreement remain in effect.
Chinese planters are not normally parties to collec
tive agreements; workers on Chinese plantations are
often paid under an incentive system according to
the amount of work accomplished .
In May 1964, the MMEA concluded a 2-year
agreement with the National Mining Workers' Union
of Malaya , applicable to directly employed manual
workers in European-managed tin mines. The
provisions of this agreement include : ( 1 ) A proba
tionary period of employment ; (2) requirement for
medical examination and X-ray before or during
the probationary period ; (3) conditions for termina
tion of employment and period of notice ; (4) days
and hours of work ; (5) overtime payment ; (6) emer
gency overtime payment; (7) weekly day of rest ;
(8) allowance for performing work with a higher
classification; (9) housing allowance ; ( 10) outstation
(away from the usual place of employment) allow
ance ; ( 11 ) paid annual leave ; ( 12 ) overseas pay ;
( 13 ) festival holidays pay ; ( 14) medical facilities;
( 15) sick leave with pay ; ( 16) tuberculosis and
leprosy leave ; ( 17) severance pay ; ( 18) retirement
benefit plan; ( 19) annual savings scheme with equal
contributions from the employer; (20) wage incre
ments; (21 ) wage structure for a basic wage and a
skill differential; and (22) continuation of the
agreement .
In October 1962, a 2-year collective agreement was
concluded between the National Union of Bank
Employees and some 20 banks (collectively referred
to as “ the banks ” ) which includes provisions on :
( 1 ) Rates of pay ; (2) probationary period of employ
ment ; (3) promotion ; (4) working hours ; (5) stagger
ing of working hours ; (6) overtime for weekdays,
Saturdays , Sundays, and public holidays ; (7) annual
leave ; (8) accumulation of leave ; (9) emergency leave
on compassionate grounds or in cases of emergency;
( 10) maternity leave ; ( 11 ) sick leave ; ( 12) medical
benefits ; ( 13) accidents policy; ( 14) transfer of
staff; ( 15) uniforms ; ( 16) loans to staff for purchase
of houses ; ( 17 ) transportation allowances ; and ( 18)
joint management-union committee for the purpose
of fostering and improving relations between
management and the staff.
In March 1964, the National Union of Petroleum
Industry Workers concluded a 3-year agreement
with Esso Standard Malaya Limited , which included
provisions for : ( 1 ) Duration of agreement (3 years
with automatic renewal for 1 year if neither requests
negotiation for a new agreement at least 3 months
before the expiration of the agreement) ; (2) monthly
deduction of union dues ; (3) pay and allowances;
(4) shift premiums ; (5) overtime pay ; (6) meal
allowances ; (7) transportation allowance for com
pany trips; (8) annual bonus ; (9) holidays ; ( 10)
annual leave ; ( 11 ) leaves of absence ; ( 12) maternity
leave ; ( 13 ) special leave ; ( 14) pay for time lost
because of births , deaths , or marriages; ( 15) medical
benefits ; ( 16) sick leave ; ( 17) termination allowance ;
( 18) grievance procedure ; ( 19) promotion; (20)
transfers; (21 ) uniforms and laundry ; and (22) safe
and healthful working conditions.
Other collective agreements exist, including
national agreements for office employees of planta
tions and tin mines. Major commercial firms have
negotiated a joint national agreement covering non
wage items with the National Union of Commercial
Workers. The provisions are numerous and varied
and those cited are not to be construed as exhaustive .
45
 Whitley Councils,26 modeled on similar govern
ment union -management bodies in the United
Kingdom, are the basic instruments through which
labor-management relations in the government
service are conducted . Civil servants' unions
participate in the work of the Whitley Councils.
In semipublic sectors, the Central Electricity Board
negotiates national collective agreements with the
unions to which its employees belong. The Penang
Port Commission bargains with its employees '
union on working conditions and wages. The Munic
ipal Council of Penang carried on collective bargain
ing with the municipal workers' union through a
joint council consisting of representatives of the
Municipal Council and the unions. A number of
municipal employees other than those in Penang
are also covered by agreements with varied provi
sions on working conditions.
In Singapore, a considerable amount of collective
bargaining is carried on, all of which must comply
with the minimum statutory requirements embodied
in the Industrial Relations Ordinance of 1960 . In
part, this ordinance provides for the regulation of
labor-management relations, the prevention and
settlement of disputes by collective bargaining, the
registration of collective agreements,27 the authority
of the government to refer an industrial dispute to
compulsory arbitration , an Industrial Arbitration
Court presided over by a President (Pt. II , secs, 3
and 4) , and the appointment of a Registrar for the
Industrial Arbitration Court (Pt . II , sec. 15) .
23 In April 1953, two national councils were set up , one for monthly
salaried officials (those in divisions I-IV) and the other for industrial and
manual groups (IMG ) . Since then the machinery has been extended
down from the national level to the individual government departments
and services. Although their organization and powers are similar, there
are some differences of detail between the two national Whitley Councils.
The council for monthly salaried civil servants is under the chairmanship of
the Permanent Secretary to the Prime Minister's Department and the
staff is represented by 22 members, while the council for the IMG has the
Principal Establishment Officer as chairman and the group is represented
by 15 members. In both cases, the government representatives are
appointed by the Yang di-Pertuan Agong, while the IMG representatives
are all elected for 1 year by members of the civil service trade unions and
staff associations. In the council for established staff, the organizations
representing Divisions I-IV share the seats between them, the majority
belonging to the Congress of Unions of Employees in the Public and Civil
Services (CUEPACS) . The staff representatives on the council for the
IMG government employees are appointed by the Government IMG Staff
Council . The two councils have appointed a number of committees and
subcommittees which make preliminary studies of various questions. The
Whitley Councils have no power to deal with individual cases unless a
question of principle is involved. On the other hand, any proposal affect
ing general conditions of employment, including the structure and level of
remuneration , must be submitted to them . The government can only take
its decision after discussion and, as far as possible , after agreement has
been reached. When the two parties cannot agree in the Whitley Councils,
provisions are made for arbitration under the agreement between the
government and the civil service staffs.
27 “ A trade union of employees may serve on an employer and an em
ployer may serve on a trade union of employees a notice in the prescribed
form setting out proposals for a collective agreement in relation to any
industrial matters and inviting the employer or trade union of employees,
46
All collective agreements must be validated by
the Industrial Arbitration Court whether or not
they have been reached through the court's inter
cession. Between October 24 , 1960, and the autumn
of 1963, the Industrial Arbitration Court certified
nearly 400 collective bargaining agreements entered
into by parties without resort to arbitration , secured
agreement in 18 cases that started as disputes but
ended as agreements through the court, and made 39
awards in cases that remained as disputes . The agree
ments and awards covered about one -third of the
nearly 200,000 workers who were members of trade
unions in Singapore at that time. There were 268
collective agreements in Singapore in 1963 .
The number of employees or workers covered by
individual collective agreements in Singapore varies
from as few as 2 or 3 to as many as 7,000. Most
agreements cover from 10 to 100 employees or
workers; some cover all employees or workers in an
establishment, while others leave out the managerial,
executive, and confidential staff. Some agreements
specify that the benefits contained therein are for
union members only ; others specify that staff
members who do not belong to the union will not be
employed on better terms and conditions than
union members .
Benefits contained in Singapore collective agree
ments vary considerably from industry to industry
and even within a particular industry . Most
agreements are between a single employer and the
negotiating union representing his personnel. At
times, there are separate agreements for different
categories of employees or workers or for different
types of benefits. The most comprehensive and
complex agreements are those relating to employees
of the Government of Singapore .
Generally, collective agreements in Singapore
include provisions dealing with : ( 1 ) Bonuses ; (2)
annual and sick leave ; (3) maternity leave ; (4) com
passionate leave on various grounds ; (5) medical
as the case may be, to negotiate with it in relation to those matters with a
view of arriving at a collective agreement ” (Pt. III, sec . 16) .
“ If a collective agreement is arrived at a memorandum of its terms shall
be made in writing and signed by or on behalf of the parties to the agree
ment and delivered to the Registrar who, upon receiving it , shall forthwith
bring it to the notice of the President for certification .
“ The President may refuse to certify a memorandum ... if he is of the
opinion that it is not in the public interest that the collective agreement
should be certified ...
“ A collective agreement shall specify the period during which it shall
continue in force, which period shall be not less than 18 months or more than
3 years from the date on which it is expressed to commence and shall, un
less the President considers such provision would be inappropriate, make
provision for the settlement of disputes between the parties to the agree
ment while the agreement is in force arising out of the operation of the
agreement including provision for the reference of such disputes to & referee
who may be a person designated in the agreement or a person to be chosen
in a manner provided by the agreement...” (Pt. III, sec. 23) .
 benefits; (6) standard workweek ; (7) shift premium;
(8) promotion ; (9) overtime ; ( 10) provision of
uniforms where uniformed personnel are used ; and
( 11 ) transportation in the course of company
business or when employees or workers are required
to work outside the normal operating hours of
public transportation or when work is required on
public holidays or days of rest. A number of col
lective agreements also contain a listing of the
salaries and wages to be paid , and provisions on
call- out pay (when a worker is called out to work
outside normal working hours) ; annual service
gratuity, fixed for certain periods of service, as
as annual increments in the basic wage or salary;
payment for shipment of household effects on com
pany transfers ; severance pay or termination or
resignation allowance ; and retrenchment (reduction
in force) according to seniority.
Section 40 of the Industrial Relations Ordinance
of Singapore empowers the Industrial Arbitration
Court to give an interpretation of a collective agree
ment upon application of a union or person bound
by the agreement; this interpretation becomes part
of the agreement. Questions of law are referred to
the State Advocate -General for his opinion ; an
award or order of the Industrial Arbitration Court
must be consistent with this opinion.
Collective bargaining has been minimal (but is
increasing) in Sabah , where industrial relations have
been maintained principally through close personal
contact between employers or managers and their
employees individually, or through consultative
committees at individual places of employment.
No data are available on the exact number of
collective agreements; several were concluded in 1963
and at least one in 1964 covering seven major
European commercial firms. The chief deterrents
to a more rapid advance in collective bargaining are :
( 1 ) The newness of trade unionism in Sabah ; (2)
the low degree of industrialization in the state
only about one-third of the economically active
population are full-time wage earners ; and (3) the
comparatively high wage rates prevailing for skilled
and semiskilled workers . There are no statutory
requirements on collective bargaining as such ;
however, the Trade Unions and Trade Disputes
Ordinance of 1947, as amended , does contain provi
sions on trade unions which relate to employees or
workers and their relations with employers.
Whitley Councils have also been established in
Sabah for negotiations covering government em
ployees.
One collective agreement 28 in Sabah, covering
mostly commercial employees and workers in seven
enterprises, has a number of provisions similar to
those in collective agreements in Singapore and
mainland Malaysia . The contract contains pro
visions concerning: ( 1 ) Scope of coverage (including
all employed personnel except confidential secre
taries, supervisory staff, temporary employees,
employees on probation, domestic servants, and
certain salesmen or employees normally eligible for
commissions) ; (2) position classification and grades ;
(3) probationary period of employment; (4) annual
increments in pay ; (5) transfers; (6) hours of work;
(7) overtime ; (8) rest days; (9) public holidays; ( 10)
annual leave ; ( 11 ) compassionate leave for death, or
serious illness, of a family member; ( 12) sick leave;
( 13) maternity leave ; ( 14) medical service ; ( 15)
hospitalization; ( 16) discipline ; ( 17) retirement age
and benefits; ( 18) retrenchment (reduction in force );
( 19) study and trade union leave ; (20) bonus ; (21)
disablement; (22) subsistence allowance ; (23) uni
forms for uniformed personnel; (24) complaints
procedure ; (25) tuberculosis leave; (26) arbitration ;
and (27) duration of the agreement.
In Sarawak, as in Sabah, collective bargaining is
minimal , but is increasing. Although the exact
number of collective agreements is not known, labor
leaders and management personnel estimated that
there were 12 agreements in 1964. There are no
statutory requirements governing collective bar
gaining as such in Sarawak; however, the Trade
Unions Ordinance of 1948 , as amended, and the
Trade Disputes Ordinance of 1948, contain provi
sions on trade unions which relate to employees or
workers and their relations with employers.
The provisions contained in collective agreements
in Sarawak are similar to those in the collective
agreements in Sabah . According to the Annual
Report of the Department of Labour, Sarawak (Sep
tember 1962 - December 1963) :
“ The policy ... of the Government in the future
will be to encourage self -determination in industry,
a policy based on the principle of recognizing the
desire of both sides of industry that questions relating
to wages and conditions of employment and other
matters of mutual interest should be settled by
themselves, rather than by compulsory measures
enforced by legislation .”
28 Reference is to the Sabah Commercial Houses Conditions of Employ
ment Agreement, 1964. The agreement is construed as a separate and
independent agreement between each company on the one part and the
union on the other ; each company has been responsible for carrying its
terms into effect only insofar as its own employees are concerned.
47
Settlement of Disputes
The National Government , through the Depart
ment of Labour and Industrial Relations in the
Ministry of Labour, assists in the prevention and
settlement of industrial disputes in mainland
Malaysia through conciliation and arbitration where
labor and management are unable to reach agree
ment, provided the disputing parties are agreeable
to such assistance . Mainland Malaysia has no laws
on compulsory arbitration . The principal laws per
taining to the prevention and settlement of disputes
are :
1. The Industrial Courts Ordinance of 1948, which provides
for government conciliation services and for the establishment
of a permanent Industrial Court 29 to which disputes can be
referred if both parties are willing and there has been a break
down in negotiations under the voluntary procedure estab
lished by labor and management (joint consultative boards,
committees, or councils) ; also, there are provisions in this
ordinance for referral of disputes to one or more arbitrators
or to an arbitration board (if no such procedure exists, only
the consent of the parties to the dispute is required ), and for
the appointment of Courts of Inquiry 30 in cases where the
interest of the public would be seriously affected by a dispute.
2. The Trade Disputes Ordinance of 1949, as amended , to
control trade disputes in public services , including public
health services, and certain matters arising from all trade
disputes.
3. The Trade Disputes ( Notice) Regulations of 1951 ,
drawn up under section 16 of the Trade Disputes Ordinance
of 1949 to determine the persons by and to whom notice of
strike or lockout in public utility and public health services
shall be given , and the manner in which such notices shall be
communicated .
A trade dispute in mainland Malaysia is defined in
the Industrial Courts Ordinance of 1948 as :
... any dispute or difference between employers and workmen ,
or between workmen and workmen , connected with the
employment or non-employment, or the terms of employ
ment, or with the conditions of labour, of any person .
With minor exception, the same definition of a
trade dispute appears in the Trade Disputes Ordi
nance of 1949 and in the Trade Unions Ordinance of
1959. These laws do not distinguish between various
types of disputes. Disputes over trade union
29 The Industrial Court is composed of employers' and workers' repre
sentatives and independent members. The Chairman is one of the latter
with full powers as umpire in the event the members cannot agree on their
award. The Court's decisions are not in themselves legally binding, but
the parties usually agree in advance to accept them. The Minister for
Labour can also refer a question to the Industrial Court for advice.
30 A Court of Inquiry is composed of a chairman and such other persons
as the Minister for Labour thinks fit to appoint, or may, if the Minister
thinks fit, consist of one person . The Court of Inquiry does not impose
any settlements on the disputants. It makes recommendations as to the
manner in which a dispute may be settled; such recommendations are not
binding.
48
recognition 31 and acts of discrimination against
unions or victimization of union members are dealt
with as ordinary disputes .
Disputes are settled by conciliation , mediation,
and arbitration , or by a Court of Inquiry. Concilia
tion in mainland Malaysia, as provided under the
Industrial Courts Ordinance of 1948 , is voluntary,
i.e. , the disputants may ask for it if they wish. The
industrial relations officer of the Ministry of Labour
will normally intervene only if the dispute is reported
to the Ministry by one of the parties to the dispute.
Mediation has been used on at least two occasions
(a dispute involving railways in 1962 and a planta
tion dispute in 1964) and is becoming recognized as
a procedure half -way between conciliation and
arbitration . As with conciliation, mediation is
voluntary .
Arbitration services provided under the Industrial
Courts Ordinance of 1948 are also voluntary , and
the consent of both parties is necessary before
referral of a dispute to arbitration . There are three
methods of arbitration : ( 1 ) Through the standing
Industrial Court (see text footnote 29) ; (2) by one
or more persons appointed by the Minister for
Labour ; and (3) by an arbitration board consisting
of one or more persons nominated by and represent
ing labor and management on an equal basis , and
an independent chairman nominated by the Minister
for Labour.32 An arbitration board is set up only
to deal with a particular dispute and is not
permanent, as is the Industrial Court .
A Court of Inquiry, appointed by the Minister
for Labour, handles disputes referred to it by him.
He makes the rules regulating its procedure, which,
among other things, empower the Court to summon
witnesses and to call for documents relevant to the
dispute . The Court may require any person called
upon who has knowledge of the dispute to furnish
relevant particulars and , where necessary , to appear
before the Court and give evidence. The Industrial
31 Labor and management have established procedures by voluntary
agreement for handling disputes over trade union recognition . Where an
employer is in doubt as to the representative status of a trade union which
has applied for recognition, he may submit to the Commissioner for In
dustrial Relations the names of all his employees who are eligible to be
members of the union concerned . If the union consents, the Commissioner
for Industrial Relations will then arrange with the Registrar of Trade
Unions for a check to be made on the membership position of the union and
inform the employer to assist him in a decision on recognition . There is
no legal requirement for an employer to recognize a union or bargain in
good faith .
32 A significant provision in the Industrial Courts Ordinance of 1948
is section 4 (4) which precludes intervention by the Minister for Labour if
there exist in any trade or industry any arrangements for the settlement of
disputes by conciliation or arbitration voluntarily agreed to by the parties
themselves, unless there has been a failure to obtain settlement by means of
the parties own arrangements.
Courts Ordinance stipulates that any information
obtained in the course of an inquiry about any trade
union or business which is not otherwise available
to the public shall not be published without the
consent of the organization or person affected .
Public employees in mainland Malaysia so far
have not been covered by the Industrial Courts
Ordinance of 1948 . Any collective disputes in
which they may be involved are discussed through
the Whitley Councils 33 and , if no settlement is
reached, the parties may jointly decide to take the
case to arbitration under the agreement between
the government and the civil service staffs.
The normal procedure in handling a dispute
in mainland Malaysia is as follows : If a dispute
arises where there is an agreed joint machinery for
dealing with disputes , the Industrial Relations
Officer of the Ministry of Labour will not normally
intervene, although he may ascertain on an informal
basis that the parties to the dispute are making
proper use of their joint machinery. Where there is
no agreed procedure for handling a dispute, or when
the procedure has broken down , and if it is known
that the parties have reached or are likely to reach a
deadlock , the Industrial Relations Officer tries to
bring about a resumption of direct discussions be
tween the parties by discussing the points in dispute
with representatives of each side and offering
suggestions . In some cases , he holds these discus
sions separately with each party on an informal
basis , but in other cases, it may be possible to ar
range a formal joint meeting ; in either case , he must
persuade and assist the parties to reach a settlement
between themselves. If the parties reach agreement
as a result of his conciliatory effort, the Industrial
Relations Officer will then assist the parties in
reducing the agreement to writing , to avoid later
misunderstanding. If the Industrial Relations
Officer fails to bring about a settlement through
conciliation, he will normally encourage the parties
concerned to resort to arbitration , and report the
situation to his superior officer . If the parties
agree to arbitration , the dispute will then be dealt
with under the Industrial Courts Ordinance of
1948 by reference to the standing Industrial Court,
or to a single arbitrator , or to a Board of Arbitration,
according to the wishes of the parties. The Ministry
of Labour performs certain administrative duties in
connection with the operation of the arbitration
33 In addition to the National Whitley Councils for employees in divisions
I-IV, and for industrial and manual personnel, other Whitley Councils
include a Police Council , a National Joint Council of Teachers, and a
number of departmentwide Whitley Councils.
processes and an officer of the Department of
Labour and Industrial Relations serves as Secretary
to the arbitration bodies .
In mainland Malaysia, the Trade Disputes
Ordinance of 1949 grants to the workers the right
to strike. In principle, workers in private industry,
public employees, and workers in public utilities 34
have the right to strike , although the latter are
subject to certain restrictions under section 7 of the
Trade Disputes Ordinance of 1949. A strike cannot
take place if the Minister for Labour has referred
the dispute to arbitration under the Industrial
Courts Ordinance of 1948, or has referred it to the
Industrial Court for advice, up to 7 days following
the conclusion of the arbitration or advisory pro
ceeding, respectively . Public utilities workers
must notify their employer of their intention to
strike 14 days in advance ; to be legal the strike
must begin during a 6-week period from the ex
piration of the 14 days' notice .
The rules of all registered " unions,” according to
the Trade Unions Ordinance of 1959 , must provide
for a secret ballot on questions relating to a strike.
This includes employers' organizations on matters
concerning a lockout. The law does not prescribe
the majority required for these decisions.
Employees or workers participating in an illegal
strike within the meaning of the Trade Disputes
Ordinance of 1949 are subject to penalties involving
imprisonment and fines (sec . 9) . An employer or
worker is also subject to penalties under section 5 if
he willfully and maliciously breaks his contract of
employment, i.e. , terminates the employment with
out giving notice to his employer, knowing that the
probable consequences of his so doing, either alone
or in combination with others, would endanger life or
the efficient operation of any public health service,
cause serious bodily injury, or expose valuable
property to destruction or serious damage. More
over , any person , according to section 10 of the
Trade Disputes Ordinance of 1949 , who instigates, or
incites others to take part in , such acts is liable to
heavy penalties, and , according to section 11 , persons
who give financial aid to illegal strikes are also liable
to penalties.
34 The Trade Disputes Ordinance of 1949, section 2 , contains a detailed
list specifying what are deemed to be public utilities and includes railways,
postal, telegraph and telephone services, power, light or water supply,
hospitals, sanitoriums and systems of public sanitation , fire services, trans
port, ferries, the storage, transport and supply of petroleum and petroleum
products and any industry, government undertaking, or service which the
Minister for Labour may declare to be a public utility service if he is
satisfied that public emergency or the public interest so requires. In the
latter case , the period during which such a declaration is in force may be
extended .
49
 According to section 4 of the Trade Disputes
Ordinance of 1949, picketing is allowed , provided it
is used merely for the purpose of peacefully persuad
ing or inducing any person to work or abstain from
work . However , it is an offense for pickets to be in
such numbers or to behave in such a way as to
intimidate any person, obstruct the approach to a
place of business, or disturb the peace .
Statistical data on strikes in mainland Malaysia
from 1957 through August 1964 are given in table
19. During the first 8 months of 1964 , there were 56
strikes involving 220,545 workers and resulting in a
loss of 464,715 man -days. The majority of the
disputes were over wages, conditions of employment
and dismissals , and union recognition. The greatest
number of strikes occur in the rubber-producing
areas. Usually these strikes break out over minor
matters and are of short duration . The majority of
strikes in most industries are settled by direct
negotiations between the parties or through con
ciliation by a third party .
TABLE 19. MAINLAND MALAYSIA : STRIKES , NUMBERS
OF WORKERS INVOLVED, AND MAN-DAYS LOST, 1957-63
Year Number
of strikes
Workers
involved
Man-days
1957 .
1958 .
113
69
14,067
9,467
1959 .
1960 .
39
37
6,946
4,596
1961 .
1962
58
95
9,045
232 , 912
1 449,856
1963 . 72 17 ,, 232
1964 (January - August ). 56 220,545
1 Does not include 8,864 man-days lost for strikes commencing in 1961
and continuing into 1962.
SOURCE: Malaysia, Ministry of Labour, Kuala Lumpur, October 1964 ;
and Monthly Report of the Ministry of Labour, August 1964, p. 25.
The basic rules governing industrial relations in
Singapore are contained in the Industrial Relations
Ordinance of 1960. This law stresses collective
bargaining, but it creates an Industrial Arbitration
Court to arbitrate at the joint request of the parties
or when the situation appears to demand such action
in the public interest . The Minister for.Labour may
direct that a trade dispute be submitted to arbitra
tion, or the Yang di-Pertuan Negara (Chief of State)
may declare, by proclamation , that because of
special circumstances it is essential in the public
interest that the dispute be submitted to arbitration.
The Industrial Arbitration Court consists of a
president , appointed by the Yang di-Pertuan
Negara, and two members selected by and from
employer and employee panels , respectively. The
president is not required to be a judge ; and the
members have the same rights, privileges, protection ,
50
and immunity as Judges of the High Court, but the
court is not bound by court formality or the rules of
evidence . Ordinarily , the parties are not allowed to
be represented by advocates or solicitors, but
represent themselves or select industrial relations
officers for that purpose . This is to maintain
informality and keep down the costs of representa
tion .
Under the provisions of the Industrial Relations
Ordinance of 1960, awards are usually made for
periods ranging from 18 months to 3 years . An
award is binding on all parties to the dispute, and
may be extended to others at the request of the
Minister for Labour on the recommendation of the
Industrial Arbitration Court . Subject to the provi
sions of the Ordinance, awards are final; they are not
subject to challenge or appeal in any court, or to
certiorari, prohibition , mandamus, or injunction.
The Industrial Arbitration Court may take evidence
on oath or affirmation ; summon witnesses and com
pel the production of written and other forms of
evidence ; conduct any part of its proceedings in
private ; inspect premises ; refer a matter to an
expert and accept his report as evidence ; and dismiss
lost
a trade dispute, or any part of a trade dispute , if it
appears trivial, or that further proceedings are not
218,962
59 , 211
desirable in the public interest (Pt . VI , Procedure
38,523 and Power of the Court, sec. 57) . Breaches of
41,947
59 , 730
awards are punishable by fines listed in the Ordi
305,168 nance. The court has the power to order compliance
464 , 715
with an award proven to have been broken , and to
enjoin a trade union or person from committing or
continuing a contravention of any provision of the
Ordinance . The court has the same power as the
High Court to punish, as contempt of court, a
failure to comply with a court order.
The Trade Disputes Ordinance of 1941 , as
amended, defines a dispute as “ .. any dispute
.
between employers and workmen or between work
men and workmen, or between employers and em
ployers which is connected with the employment or
nonemployment, or the terms of employment or the
conditions of labour, of any person.” The Industrial
Relations Ordinance of 1960 defines a dispute as
.
a dispute (including a threatened , impending
or probable dispute) as to industrial matters," and
industrial matters are defined as “ ... matters per
taining to the relations of employers and employees
which are connected with the employment or non
employment or the terms of employment or the
conditions of work of any person.” No distinction
is made between various types of disputes. How
ever, under the Labour Ordinance of 1955, the Shop
Assistants' Employment Ordinance of 1957, and the
Clerks' Employment Ordinance of 1957, the Com
missioner for Labour, through Labour Courts (two
Assistant Commissioners for Labour sit as Labour
Courts as authorized by the Labour Ordinance of
1955, the Shop Assistants' Employment Ordinance
of 1957, and the Clerks' Employment Ordinance of
1957) has the power to give decisions in labor
management disputes that arise from any terms in
the contract of employment. The cases heard by
the Labour Courts are claims alleging violation of
the labor ordinances with respect to : Payment of
wages, holiday pay, maternity allowances, overtime
pay, and pay for dismissal without notice.
Jurisdiction of the Labour Courts rests not only on
the existence of an employer- employee relationship,
but also on the statutory definitions of " workmen ,”
" shop assistant," " clerks,” and “ industrial clerk .”
In employer-employee disputes outside the Labour
Courts' jurisdiction (for example, in the Labour
Ordinance) , the Labour Courts offer their services
as arbitrators if the parties consent. Labour Court
decisions are appealable to the Singapore High
Court; Labour Court orders are enforceable in the
Civil District Courts.
Disputes over trade union recognition, and acts of
antiunion discrimination or membership victimiza
tion, fall under the provisions of the Industrial
Relations Ordinance of 1960. Section 18 (3)
provides for the settlement of disputes over trade
union recognition by secret ballot of the employed
personnel. Section 76 provides that employers
shall not discriminate against members of trade
unions. Sections 77 and 78 provide that an employee
and an employer, respectively, shall not be “ injured”
on account of industrial action .
The methods of dispute settlement are set out in
Part III (secs. 16 to 26) and Part IV (secs. 28 to 32)
of the Industrial Relations Ordinance of 1960, in
three steps, as follows: (1) Direct negotiations be
tween a trade union and employer; (2) conciliation ;
and (3) arbitration .
In direct negotiations, a union or employer may
serve notice on the other setting out proposals for a
collective agreement and inviting the party to
negotiate with a view to arriving at a collective
agreement. If, within 7 days of the service of this
notice, the invitation is accepted, then the parties
negotiate directly.
If the invitation to negotiate directly is not ac
cepted by the other party within 7 days of a notice
thereof, the aggrieved party may notify the Com
missioner for Labour, who is required to consult with
the other party with a view to persuading it to
accept such invitation. If the employer's refusal to
accept an invitation to negotiate is due to his belief
that the majority of the persons employed by him
are not members of the trade union, the Commis
sioner for Labour may submit the question of union
membership to a vote by secret ballot.
However, if the employer or trade union refuses to
negotiate for any reason except membership , the
Commissioner for Labour notifies the Minister, and
also, unless the Minister directs otherwise, the
Registrar of the Industrial Arbitration Court, of the
existence of a trade dispute. If the Minister con
siders that the trade dispute may be settled by
conciliation, he may direct a person , whether con
nected with the trade dispute or not, to attend a
conference presided over by himself or such other
person as he selects.
If, after the expiration of 14 days from the date of
the service of a notice to negotiate, no collective
agreement has been reached between the parties,
either the trade union or the employer must notify
the Commissioner for Labour. On receipt of this
notification, and if the Commissioner believes it
unlikely that conciliation will assist the parties to
reach agreement, he notifies the Minister, and,
unless the Minister otherwise directs, also the
Registrar of the Industrial Arbitration Court, that a
trade dispute exists; or, if the Commissioner believes
conciliation will assist the parties to reach agree
ment, he may direct a Conciliation Officer to consult
with the employer and the union concerned with
that end in view . If after 7 days of such consulta
tion the Commissioner considers that negotiations
are unlikely to lead to a Collective Agreement, he
notifies the Minister and also, unless the Minister
otherwise directs, the Registrar of the Industrial
Arbitration Court, that a trade dispute exists. If
the Minister considers that the dispute may be
settled by further conciliation, he may direct a
person, whether engaged in or connected with the
trade dispute or not, to attend a conference presided
over by himself or such other person as he directs.
The third method is through arbitration by the
Industrial Arbitration Court . Referral to the
Industrial Arbitration Court may be made in one
of three ways, as follows: (1) The parties to the
dispute may make a joint request in writing to the
Registrar of the Industrial Arbitration Court that
the trade dispute be submitted to arbitration; (2)
the Minister may, by an official notice, direct that
the trade dispute be submitted to arbitration ; or
51
 (3) the Yang di-Pertuan Negara may, by proclama
tion, declare that by reason of special circumstances
1
it is essential in the public interest that a trade
dispute be submitted to arbitration . The procedure
for arbitration is similar to that followed in concilia
tion. Submission to arbitration is a last resort when
direct negotiations, and conciliation by the Ministry
of Labour, have failed to settle the dispute , and
even then, every encouragement is given to the
parties to refer their dispute jointly to the Industrial
Arbitration Court. If they fail to do so, the Minister
refers the dispute to arbitration under section 28 (b)
of the Industrial Relations Ordinance of 1960.
( Arbitration may be used only in disputes between
management and a union. )
The Singapore laws applying to grievances and
complaints — i.e., the Labour Ordinance of 1955, the
Clerks' Employment Ordinance of 1955, the Shop
Assistants' Employment Ordinance of 1957, the
Industrial Relations Ordinance of 1960, and the
Trade Disputes Ordinance of 1941-apply only to
intercompany grievance procedures.
Intracompany grievance procedures differ accord
ing to the establishment. In Singapore, most of
the industrial establishments employ fewer than 20
persons. In the small firms, grievance procedures
are informal; usually the complainant seeks redress
by approaching directly the towkay (boss) who owns
or manages the enterprise ; if not satisfied , he can
ask his union to intercede, request the Labour
Department to conciliate, or in some instances
proceed to the Labour Court . In the larger enter
prises, grievance procedures are not uniform, but
generally they resemble practices in the United
States .
A hypothetical example of grievance procedure in
Singapore might assume that a manufacturer
employing 200 workers decides to dismiss 5 workers.
After receiving their dismissal notices, the workers
first approach their immediate supervisor, usually a
foreman, who informs them that the decision is
unalterable . The workers then consult the union
shop steward or branch secretary, who accompanies
them to interview the foreman again. If the dis
missals still stand, the foreman and the shop steward
together consult the personnel officer (in some cases
accompanied by the workers concerned) , and if the
issue remains unsolved, the foreman , shop steward,
and personnel officer present the matter to the
company's top executive, usually either a branch
manager or a district manager. If the manager is
If the
unwilling to reconsider the dismissals, the shop
steward then submits the case to the union, and,
52
accompanied by the shop steward, union officers
interview the manager . If he declines to reverse
the decision the union has several recourses. It
can drop the matter, it can threaten to strike if the
company will not reinstall the discharged employees ,
or it can invoke the collective bargaining , concilia
tion, and compulsory arbitration procedures of the
Industrial Relations Ordinance of 1960 .
The statutory provisions on strikes, lockouts,
and unlawful conduct in connection with industrial
disputes, are embodied in the Trade Disputes
Ordinance of 1941 , as amended in 1960 and the
Criminal Law ( Temporary Provisions) Ordinance
of 1955 as amended in 1959 and August 1964. Under
the provisions of the former law (sec . 3 of the
amended law of 1960) , a strike or lockout is illegal
under the following circumstances: ( 1 ) if it has any
object other than furtherance of a trade dispute
within the trade or industry in which the strikers or
employers locking out are engaged ; (2) if it is in
furtherance of a trade dispute of which the Industrial
Arbitration Court has cognizance ; and (3) if it is
designed to coerce the government either directly
or by inflicting hardship on the community. The
Criminal Law Ordinance, Part V, imposes certain
restrictions on strikes and lockouts by workmen
and employers employed and engaged in any
essential service . Essential services are : Water,
gas, electricity, public health, fire department;
prison, and postal services; telephone, telegraph , and
port , dock, and harbor services and undertakings;
and services dealing with bulk distribution of fuel
and lubricants .
The restrictions imposed on strikes or lockouts,
under section 23 of the Criminal Law ( Temporary
Provisions) Ordinance of 1955 as amended , are as
follows : ( 1) Both employer and workmen 35 shall
give at least 6 weeks' notice to each other before a
lockout or strike ; (2) neither employer nor workmen
shall lock out or strike within 14 days of giving such
notice ; (3) neither employer nor workmen shall
lock out or strike before the date specified in the
notice of lockout or strike; and (4) neither employer
nor workmen shall lock out or strike while any
conciliation proceedings instituted by the Com
missioner or the Minister under the Industrial
Relations Ordinance of 1960 are pending.
35 Workman here means any person who has entered into or works under
a contract with an employer, whether the contract be for manual labor,
clerical work , or otherwise, be expressed or implied, oral or in writing, and
whether it be a contract of service or of apprenticeship or a contract per
sonally to execute any work, and includes a workman discharged during that
dispute .
 The statutory provisions concerning offenses in
connection with industrial disputes are contained in
Singapore's Trade Disputes Ordinance, sections 3B,
3C , 3D, 3E , 4, and 5. Section 5 concerns picketing,
which is unlawful if it is done with a view to : ( 1 )
Intimidating any person in a home or place of work ;
(2) obstructing the approach thereto or egress
therefrom ; or (3) committing a breach of the peace .
Section 6 stipulates that any person who willingly
and maliciously breaks a contract of employment or
of hiring with a view to endangering human life,
causing serious bodily injury, or exposing valuable
property, real or personal, to destruction or serious
injury, commits an offense punishable by imprison
ment up to 3 months, or a fine up to M$500 (US
$ 165) , or both . The Criminal Law (Temporary
Provisions) Ordinance of 1955, as amended , which
relates in part to essential services , also contains
penalties for illegal strikes or lockouts, specifically
in sections 26, 27, and 28 .
In 1963, a total of 967 disputes involving 24,147
employees or workers occurred in Singapore. The
principal causes of the stoppages were claims for
dismissal, retrenchment, and severance pay , wage
increase, union recognition , and fringe benefits.
Most of the disputes were settled quickly.
In Sarawak, the statutory provisions for the
prevention and settlement of disputes are contained
in the Trade Disputes Ordinance of 1948, and the
Essential Services Arbitration Ordinance of 1958 .
The Trade Disputes Ordinance of 1948 (sec . 2) ,
defines a trade dispute as any dispute between
employers and workers , or between workers and
workers , connected with the employment or non
employment , or with the terms of employment, or
with the conditions of work of any person .”
Grievance procedures in Sarawak are usually in
formal except where collective agreements exist ;
usually the complainant seeks redress (within 3 days)
by approaching his superior. If not satisfied, the
complainant may ask his union to intercede . The
branch committee decides whether the matter can be
dealt with at the branch level (usually minor
matters) or whether it should be referred to the
union's executive council (usually major problems) .
The union then presents the complaint in writing to
the employer or manager , generally within 3 to 10
days after receipt of the complaint ; the employer or
manager normally gives his decision within 10 work
ing days . If the union is not satisfied with this
decision, it can refer the complaint to Sarawak's
Commissioner for Labour .
Under the provisions of the Trade Disputes Ordi
nance of 1948 (sec . 10) , the Commissioner may : (1)
Inquire into the causes and circumstances of the
dispute ; (2) take such steps as may seem expedient
for the purpose of enabling the parties to the dispute
to meet jointly, by themselves or through their
representatives, under the presidency of a chairman
mutually agreed upon or nominated by him or by
some person or body, with a view to the amicable
settlement of a dispute; and (3) on the application of
employers or workmen concerned , and after taking
into consideration the existence and adequacy of the
means available for conciliation and the circum
stances of the case , appoint a conciliator. The
conciliator inquires into the cause and circumstances
of the dispute and , by negotiation with the parties,
tries to bring about a settlement. He is required to
report his progress to the Commissioner for Labour.
If a settlement is reached , the conciliator must send
a memorandum of the terms, signed by both parties,
to the Commissioner for Labour who in turn reports
the matter to the Governor of Sarawak .
Under the provisions of section 11 of the Trade
Disputes Ordinance of 1948 , as amended , any trade
dispute may be reported to the Governor by or on
behalf of either of the parties to the dispute, and the
Governor can take such steps as seem to him
expedient for promoting a settlement thereof; if
conciliation has not been attempted, the Governor
may refer such trade disputes to the Commissioner
for Labour for the purpose . Under the provisions
of section 12 of the same law, the Governor may refer
the dispute, with the consent of both parties and
after any existing arrangements provided in col
lective agreements have been exhausted, to an
arbitration tribunal appointed by him. The tribunal
shall be constituted of either a sole arbitrator agreed
upon by both parties to the dispute , or by an
arbitrator , agreed upon by both parties, assisted by
one or more assessors nominated by or on behalf of
the workers concerned . Only the arbitrator can
make and issue an award (sec . 12 (2) (b) ) , which
shall be submitted to the Governor for authentica
tion and publication. Questions arising on the
interpretation of any award will be resolved by the
arbitration tribunal . The decision of the tribunal on
questions of interpretation are deemed to form part
of , and have the same effect as, the original award.
Until the merger of Sarawak with Malaysia, there
was no appeal from the arbitrator's decision and the
award was final and binding on both parties.
However, since the merger in September 1963,
appeals can be made to the Industrial Court in
53
Kuala Lumpur ; this is the final step and no other
recourse is available. No appeals have been made to
Kuala Lumpur as of this writing (April 1965) .
Strikes and lockouts (peaceful) and peaceful
picketing are permitted in Sarawak under the
provisions of the Trade Disputes Ordinance of 1948
(secs. 5 and 9 , respectively ). The executive council
of the union makes all decisions on cessation of work,
but only after two-thirds of the members affected
have voted by secret ballot in favor of the proposed
action . Lockouts and strikes are also permitted in
“ essential services” (air, electricity, fire, gas, health
and hospital services, port and harbor services
including stevedoring and cargo handling on the
wharf, sanitary, and water services) , but they are
subject to certain restrictions according to the
provisions of the Essential Services Arbitration
Ordinance of 1958 .
The restrictions on lockouts and strikes in Sarawak
under the Essential Services Arbitration Ordinance
(sec . 15) are as follows : ( 1) The dispute must have
been reported to the Chief Secretary ; (2) 21 days
must have elapsed since the date of the report ; and
(3) the dispute must not, during the 21 days, have
been referred by the Chief Secretary for settlement,
either through any existing arrangement for settle
ment of disputes contained in collective agreements,
or through an arbitration tribunal consisting of five
members appointed by the Governor, of whom one
shall be chosen to represent employees and one to
represent workers. Penalties for premature strike or
lockout in essential services are contained in sections
16 and 17 of the Essential Services Arbitration
Ordinance of 1958.
The annual report of the Department of Labour ,
Sarawak, which covers the period September 1962–
December 1963 , shows that there were no trade
disputes during that period .
The prevention and settlement of disputes in
Sabah is similar to that in Sarawak . The statutory
provisions concerning disputes are contained in the
Trade Unions and Trade Disputes Ordinance of 1947
as amended (secs. 26, 27, 28 , 31 , 33, 34, 39, and 41) .
In the case of workers in essential services , i.e. ,
electricity services, fire, health, hospital, sanitary ,
and water services, the procedure for handling
disputes is contained in the Essential Services
Arbitration Ordinance of 1959 which is similar to the
ordinance on essential services in Sarawak . Final
appeals after arbitration can be made to the Indus
trial Court in Kuala Lumpur. Thus far, no such
54
appeal has been made. Strikes or lockouts and
picketing are also permitted under the provisions of
both ordinances, provided they are peaceful. For
the most part, industrial relations in Sabah, as in
Sarawak , have been maintained by means of close
personal contact between employers or managers and
their employees or workers individually, or through
consultative committees at individual places of
employment.
There were a number of work stoppages in 1963 in
Sabah but only one of any significance. The
dispute arose out of the dismissal of a salesman by a
commercial firm which had branches throughout
Sabah. The strike lasted for 1 month, and a final
settlement was reached through arbitration . This
was the first strike attributable to trade union
activity.
Industrial relations involving government em
ployees are handled in both Sarawak and Sabah by
Whitley Councils, similar to those in mainland
Malaysia .
Relations in Nonunion Enterprises
The normal practice in the settlement of griev
ances, complaints, or disputes in nonunion enter
prises throughout Malaysia is for the employee or
worker to try to obtain redress from his foreman or
employer directly. When the statutory provisions
of the various labor laws on labor standards and
working conditions are violated, the worker can
file a complaint with the government labor agencies,
which will conduct an investigation and attempt to
resolve the problem. For example, in peninsular
Malaysia, many individual disputes are dealt with
by the labor courts under the procedure of the
Employment Ordinance of 1955 (secs. 69–75) . The
procedure includes filing a written complaint on
money matters arising out of the terms of an employ
ment contract with the Commissioner for Labour,
who makes an inquiry and subsequently, if war
ranted, issues an order enforceable by the Sessions
Court in the area of jurisdiction. The Commissioner
for Labour can submit any question of law, arising
from the proceedings, for decision by a judge of the
High Court . An appeal from such a decision goes
to the Court of Appeal. Even under the Rump
Labour Code, complaints arising out of an employ
ment agreement can be made to the Commissioner
for Labour in peninsular Malaysia.
 PART IV. CONDITIONS OF EMPLOYMENT
Chapter X. Employment Practices
Records and Reports
Employers in Malaysia are bound by certain
statutory provisions to either submit, or be prepared
to make available, a variety of records or reports to
the government .
In peninsular Malaysia, the Employment Ordi
nance of 1955 and the Employment Regulations of
1957 contáin provisions on registers, reports to the
government, and notice boards that must be main
tained by the employer. For example, the Employ
ment Ordinance of 1955, Part XIII , section 61 ( 1 )
specifies that :
Every employer of five or more labourers shall prepare and
keep one or more registers containing such information
regarding each labourer employed by him as may be pre
scribed by regulations made under this Ordinance.
The Employment Regulations of 1957, section 5,
specify that this register shall contain the following
information concerning each laborer:
Name
Sex
Age (if under 17 years)
Occupation
Date of beginning employment
Date of leaving employment
Where pay is calculated by reference to time, or to work
completed :
The amount of normal or extra work done each pay
period.
Rate or rates of pay for normal or extra work showing,
where appropriate, method of calculation .
Amount earned for normal or extra work done each wage
period .
Details of any allowance or other sum including amount due
and pay advances each pay period.
Details and amounts of any pay deductions and the balance
paid in each pay period.
Every register must be available for at least 12
months after it has been established ( Employment
Ordinance of 1955, Pt. XIII, sec . 61 (2) ) . The
register containing the above information must be
established without “ unreasonable ” delay (Employ
ment Regulations of 1957, sec . 5) . The Employment
Ordinance of 1955 also prescribes in section 64 that
a notice board, in the English language, must be
erected in a conspicuous place by the owner of any
estate of more than 25 acres or of any mine or factory
employing 5 or more workers, giving the name of the
estate, mine, or factory and its office address .
Additional statutory provisions contained in the
Wages Regulation (Shop Assistants ) Order of 1963
reinforce the requirements that an employer must
keep such records as are necessary to show whether
the provisions of the Wages Councils Ordinance of
1947, specifically Pt. III, sec . 12 (3) concerning
powers to fix remuneration, are being complied with.
Orders or regulations on wages must be posted in a
conspicuous place for the purpose of informing
workers to whom such information applies. Where
there is more than one notice, they must be posted
together.
Under peninsular Malaysia's Weekly Holidays
Rules of 1951 , section 5 requires proprietors or
managers of shops, restaurants, or theaters to keep
a record of the holidays given employees. This
record must be compiled each week and the entire
record must be available for at least 1 year.
Peninsular Malaysia's Employees' Provident Fund
Ordinance of 1951 , as amended, and the implement
ing rules, require employers to keep books, accounts,
or records on all employees or workers who are
members of the fund ; to produce the records upon
request for review by labor inspectors or other
government labor officials; or to submit any records
concerning the fund to the government when
requested.
The Workmen's Compensation Ordinance of 1952
requires employers in peninsular Malaysia to report
to the government every accident within their estab
lishment and to record all available information
concerning it .
In Singapore, the Labour Ordinance of 1955, the
Clerks' Employment Ordinance of 1957, and the
Shop Assistants' Employment Ordinance of 1957
require employers to keep registers for each wage
55
period showing the rate of pay and allowances, the
amount earned (overtime included) , and the
deductions from earnings of each employee or
worker. They further require employers to send
quarterly reports to the Commissioner for Labour
on forms provided by the Department of Labour.
Regulations stipulate that these registers must show
the name, sex , age, occupation, work history ,
details of pay, and leave record of each employee
or worker. The reports are due when required by
the Commissioner for Labour, usually within the
first 14 days of January, April, July, and October.
Other required reports, showing the number of
workmen, shop assistants, clerks and industrial
clerks employed, must be filed in March and Septem
ber every year. Penalties are provided for failure
to submit required reports.
Singapore's Industrial Relations Ordinance of
1960 empowers the Industrial Arbitration Court to
order employers to keep employment records
relating to employees working under a collective
agreement.
The Workmen's Compensation Ordinance of 1955
stipulates that an employer in Singapore must
notify the Commissioner for Labour in writing
within 10 days of the occurrence of any accident on
his premises, connected in any way with his trade or
business, which results in the death or immediate
disablement, total or partial, of any injured person
(Pt . II, sec. 13) . The Ordinance further provides
that employers are to submit reports annually to the
Ministry of Labour specifying the number and kind
of injuries and the amount of compensation . These
provisions are similar to those of peninsular Malay
sia's Workmen's Compensation Ordinance of 1952 .
Singapore's Central Provident Fund Ordinance
of 1955, as amended, and the Central Provident
Fund Rules of 1964 require : ( 1 ) Registration by
employers; (2) submission of contributor's record
cards for employees or workers ; and (3) monthly
returns accompanied by monthly payments into the
fund, including a schedule of the contributions.
Singapore's Factories Ordinance of 1958, as
amended, also requires various records and reports.
Before beginning operations, factory owners must
apply to the Department of Labour for registration
of plant and machinery. Management must keep
on the factory premises a register of lifting devices,
and must report to the Department of Labour all
occurrences of such diseases as silicosis, chrome
ulceration, toxic anemia, anthrax, toxic jaundice,
compressed air illness, epitheliomatous ulceration
(due to tar pitch bitumen , mineral oil, or paraffin ),
56
and lead, phosphorous, arsenical, mercury, man
ganese, carbon bisulphide, aniline, and chronic
benzene poisoning. Management must also report
to the Department of Labour such accidents or
hazards as explosions, collapses of cranes or other
heavy equipment, fire, etc. In every factory,36
copies of all registers and reports must be kept for
examination. The Department of Labour must be
notified 1 month in advance before a factory begins
using mechanical power.
Employers in Sarawak are bound under the
provisions of the Labour Ordinance of 1952 to post,
in a conspicuous place, a copy of chapter V concern
ing contracts of employment for a specific piece of
work requiring more than 1 month or 26 working
days to complete (sec. 19) . The copy of chapter V
of the Labour Ordinance of 1952 must be in English
as well as in a language known to the workers (sec.
31 ) . All employers are obliged to keep a register of
all workers, including young persons, in their
employment (secs. 59, 60, 78, and 82) .
Sarawak's Workmen's Compensation Ordinance of
1957 stipulates that an employer must notify the
Commissioner for Labour in writing within 10 days
of the occurrence of any accident on his premises,
connected in any way with his trade or business,
which results in the death or immediate disablement,
total or partial, of any injured person (Pt. II , sec .
13 ) . The ordinance further provides that employers
are to submit reports annually to the Commissioner
for Labour specifying the number of injuries and
the amount of compensation (sec . 23) . Sarawak's
Workmen's Compensation Ordinance of 1957 is
almost identical with Singapore's Workmen's Com
pensation Ordinance of 1955.
Sabah's employers are also bound to keep certain
records and file certain reports under the provisions
of its Labour Ordinance of 1948, whose provisions,
except for the section reference numbers, are almost
identical with those contained in Sarawak's Labour
Ordinance of 1952 ; see above. The sections in
Sabah's Labour Ordinance containing the require
ments are : Sections 18, 30, 58, 59, 77, and 81 .
Sabah's employers are also required to report
under its Workmen's Compensation Ordinance of
1955, sections 13 and 23. The provisions in this
law are similar to those contained in Sarawak's
Workmen's Compensation Ordinance of 1957 and
36 According to the Factories (Amendment) Ordinance of 1959, " no
premises shall be deemed to be a factory in which less than ten persons are
employed and in which (a) no mechanical power, steam boiler, steam
container, steam receiver, cast iron unfired vulcanizer, air receiver,
refrigerating plant pressure receiver or gas plant is used ; or, (b) no highly
inflammable or noxious substance is manipulated, used or created .”
the workmen's compensation laws of mainland
Malaysia and Singapore.
Under the provisions of Sabah's Wages Councils
Ordinance of 1960, employers to whom a wages
regulation order applies 37 must keep and retain for
3 years records concerning wages and wage rates.
Moreover, employers are required to post in a
conspicuous place all notices of wages regulation
proposals or wages regulation orders affecting the
workers in their employment (sec. 11 ) .
Apart from the statutory requirements on records
and reports, employers generally post in a con
spicuous place a copy of working rules listing offenses
subject to disciplinary action.
Preemployment Inquiries
Employers in Malaysia verify education, exper
ience , and other qualifications of applicants for
employment by directing inquiries to school head
masters, to former employers and supervisors, and
to persons listed as references by the applicants ; they
may conduct tests to determine the applicant's
degree of skill, especially in such occupations as
typing and shorthand. Usually, for a nominal fee,
employers can obtain police reports of previous
offenses, known society (fraternal) affiliations, and
sometimes Communist activities. As a rule , em
ployers seldom request police investigations . Lim
ited information is sometimes available from a
government employment exchange if an applicant
has been registered there. Other than through the
police and the existing government employment
exchanges, government agencies can provide little
background information about applicants for em
ployment.
Hiring
Mainland Malaysia's hiring is done partly through
a series of government employment exchanges 38
and partly through less formal channels . Registra
37 The Wages Councils Ordinance of 1960 enables wages councils to be
established where necessary for industries in which no adequate machinery
exists for the regulation of wage rates. It also empowers the governor to
issue wages regulation orders for the purpose of giving effect to the pro
posals of such councils.
38 Government employment exchanges are located at the following
places : Alor Star, Butterworth , Ipoh, Johore Bahru, Kluang, Kota Bharu ,
Kuala Lumpur, Kuantan , Kulim, Malacca, Muar, Penang, Petaling Jaya,
Port Swettenham, Rawang, Seremban, Sungei Patani, Taiping, Tapah ,
and Teluk Anson . In addition, limited government employment exchange
facilities exist at Bentong, Kuala Pilah , Kuala Trengganu , Raub, Segamat,
and Sitiawan .
tion with employment exchanges is voluntary, and
their services are free to both employer and job
seeker. There has been a steady increase in the
number of persons registered as available for jobs
as well as in the number placed in employment, as
follows:
Number Number placed
registered in employment
1959... 24,303 7,215
-
1960 ... 30,074 12,948
1961 .- 47,331 16,194
1962 .. 55,990 16,940
SOURCE: Ministry of Labour, Kuala Lumpur, 1964, and Malaysia
Yearbook , 1963-64, Straits Times Press (Malaya ), Ltd. 1964 , p. 207.
As of August 1964, there were 87,620 persons,
including 39,441 young people under 21 years of age,
registered with the employment exchanges through
out mainland Malaysia (these figures comprise
unemployed , the partially employed, and those in
employment seeking changes of occupation ). At the
same time ( August 1964) , the employment exchanges
helped employers fill 1,431 job vacancies. Most of the
job-seekers registered at the employment exchanges
are unskilled, with minimal educational qualifica
tions, and seek jobs as manual workers.
The mainland Malaysia employment exchanges
also assist former servicemen in job placement,
especially for such occupations as guards, truck
drivers, hospital attendants, manual work, and
watchmen ; such jobs are given usually on a prefer
ential basis to veterans.
Mainland Malaysia also has a youth employment
service whose main object is to provide vocational
guidance to school leavers and assist them in finding
employment which would provide the best oppor
tunities for the development of their interests and
capabilities.
Mainland Malaysia's Employment Ordinance of
1955, as amended, is the only legislation regulating
the employment of “ labourers” under an employ
ment contract. “ Labourer ” according to section 2
and schedule 1 of this Ordinance means :
1. Any person skilled or unskilled, other than a domestic
servant or person employed in any vessel as defined in section
2 of the Merchant Shipping Ordinance of 1952, who has
entered into a contract of service with an employer in pur
suance of which he is engaged in manual labour, including any
artisan or apprentice.
2. Any person who has entered into a contract of service
with an employer in pursuance of which he is engaged in the
57
operation or maintenance of any mechanically propelled
vehicle operated for the transport of passengers or goods or for
reward or for commercial purposes, including a conductor
and an attendant but excluding an inspector or a member of
the clerical staff.
3. Any person who has entered into a contract of service
with an employer in pursuance of which he supervises or
oversees any other labourers employed by the same employer
in and throughout the performance of their labour.
The main items covered by the Employment
Ordinance of 1955 are : employment contract ;
termination of contracts; payment of wages; de
ductions from wages ; priority of wages ; liability of
principals and contractors for wages ; employment
of women, maternity protection and maternity
allowances ; days and hours of work ; registers,
reports and notice boards ; inspections ; complaints
and inquiries ; and procedure. Mainland Malaysia
has no written law to regulate the employment of
workers who are not covered by the provisions of the
Employment Ordinance of 1955.
The employment of other than manual workers is
regulated by common law usage or by the terms of
their employment contract .
Apart from the provisions of the Employment
Ordinance of 1955, and common law usage on the
employment of other than manual workers, mainland
Malaysia does have (according to Ministry of Labour
officials) two systems of employment applicable
chiefly to workers in tin-mining, sawmilling, building,
construction, and rubberpacking factories. The
more common system is for employers to delegate
authority to " headmen” (kepalas) , who hire the
required number of employees or dismiss them when
necessary, pay wages, keep accounts, etc. , and thus
save the employers the necessity of day-to -day
close supervision. These workers have an employ
ment contract with their respective kepalas who are ,
in fact , employers, and thus responsible for paying
wages, contributions to the Employees' Provident
Fund, and Workmen's Compensation in case of
accidents under certain circumstances. If they fail
in these obligations, the workers can seek relief from
the principals .
The second is the Pok Chau system , which is
prevalent only in the Chinese sector of the tin
mining industry. " Pok Chau ” is a Chinese expres
sion ; the meaning of the word “ Pok” is “ to gamble.”
Under this system, a worker's definite wage or
earnings for actual work done is not assured because
of the element of risk associated with the enterprise.
As an illustration, if the workers struck a rich vein
or good deposits of tin ore, their remuneration would
be high. The workers employed on this system are
58
sometimes known as “ self-employed contractors”
or “ co -adventurers,” and occasionally they in turn
employ a few unskilled laborers on daily rates. In
this contract system , the employer or mine owner
pays to the headman or representative of these
workers an agreed price for every pikul ( 133.3
pounds) of ore produced. To help the workers to
purchase food and other provisions, the employer
or mine owner gives the self-employed contractors or
co - adventurers advances at regular intervals, which
are deducted when accounts are settled monthly
and payments are made. The workers then distrib
ute the balance among themselves according to the
time and amount of work performed by each, paying
the unskilled laborers their full wages according to
the agreed rates. Normally, the mine owner also
directly employs other workers, such as engine
drivers and supervisory staff, who are all paid on a
monthly basis.
The direct hire method is probably most widely
used in mainland Malaysia. An employer needing
additional workers usually lets the fact be known
to his existing work force. The information is
quickly passed on to relatives and friends, with the
result that a sufficient number of applicants are
usually available for most job openings. Enter
prises in need of professional or skilled workers, how
ever, advertise in newspapers, and contact trade
union offices. Also, personnel officers visit the
university and trade schools in search of needed
talent, and conduct interviews with prospective
personnel for specialized fields.
Foreign persons entering Malaysia as contract
employees of the National Government, or with
approved private firms, are required to obtain
employment passes from the Controller of Immigra
tion after arrival. The employment pass is valid
usually for the duration of the employment contract.
In Singapore, the statutory provisions concerning
the contract of employment, including those covering
termination of employment, are embodied in the
Labour Ordinance of 1955, the Shop Assistants'
Employment Ordinance of 1957, and the Clerks'
Employment Ordinance of 1957. These three
ordinances apply to all employment agreements,
written or verbal, and violations by employers are
subject to penalties. The provisions are similar in
the three ordinances ; they cover terms of employ
ment contracts, termination of contract, notice of
termination of contract, termination of contract
without notice, limitation of contract period, dis
missal without notice on grounds of misconduct,
liability on breach of contract by either party; and
the stipulation that the contract may not restrict
the rights of employed personnel to join, participate
in, or organize tradę unions . These three statutes
further provide that a contract for an unspecified
period shall be deemed to run until terminated by
either party in accordance with provisions in the
statutes .
Singapore has no statutes covering work rules :
however, some large employers such as the govern
ment, and quasi-governmental agencies, have staff
regulations which are implicit in the contract.
Singapore, like mainland Malaysia, has an Em
ployment Exchange Service which operates on a
free and voluntary basis.39 It keeps a record on
file of each applicant's background experience as
provided by him. No testing services are provided ;
however, the Employment Exchange Service has
assisted employers in arranging for applicants to
take examinations. Applicants registering at the
Singapore employment exchanges include not only
those who have no job , but also casual, part-time,
and full-time workers, who apply in the hope of
obtaining better employment. Since 1956, roughly
17,000 new applicants have registered at the em
ployment exchanges each year. The number of
applicants on the employment exchange registers
for the past several years (December figures unless
otherwise noted) was as follows :
1956 ...
1957
1
1958 ...
1I
1959.
1960
1961 -
1962 ...
1963 ...
1964 (August) .
SOURCE : Singapore, Department of Labour, Annual Report of the Labour
Department, 1961 , table XXI, p. 116 ; and Monthly Reports of the Labour
Department for December 1963, January 1964, and August 1964 .
The majority are young persons in the 14- to 30
year age group , largely unskilled workers with
minimal academic qualifications. The employment
exchanges place about 3,000 in vacancies each year,
while many more are removed from the active
register each year upon securing employment by
other means. Many applicants cannot be located
by the employment exchanges for job referrals.
The Singapore employment exchanges also render
employment assistance to disabled persons, provided
they are found medically fit for employment .
39 There are two exchanges in operation (April 1965) ; the main exchange,
established in 1946, is on Havelock Road, and a branch exchange, opened
in 1954 , is in Bukit Panjang village.
In Singapore, hiring of (1) artists, musicians, and
entertainers; (2) specialized, professional, and scien
tific personnel; and (3) secretarial and clerical person
nel is conducted through private employment
agencies, which are regulated according to the pro
visions of the Employment Agency Ordinance of
1958. A license from the Commissioner for Labour
is required for the operation of an employment
agency .
Executive and professional vacancies are some
times advertised in local newspapers and magazines
and most large firms maintain direct contact with
the University of Singapore in their search for top
talent. Many foreign firms recruit foreign executives
in their home countries and their Asian executives
from university students who have studied in
Malaysia and abroad . Hiring of nonexecutives and
the general work force is carried on through unions
and by informing the current work force of vacancies.
In most instances, Singapore employers require
medical examinations at company expense , because,
according to a number of management officials, it is
“ extremely difficult to dismiss workers once they are
hired . ” Usually, employees and workers are hired
on a conditional basis for 3 months, and , depending
on their performance, are given permanent status
after the probationary period .
The statutory provisions relating to employment
Number of
registrants contracts in Sarawak are contained in the Labour
7,842
Ordinance of 1952. The provisions of this Ordinance
8,091
cover: (1) Termination of agreement by notice; (2)
12,047
termination of agreement without notice by either
48,076
54,669 party ; (3) dismissal without notice ; (4) cancellation
54,085 of the employment agreement by the Commissioner
44,673 for Labour ; (5) attestation of contracts by the Com
42,777
46,843 missioner for Labour ; (6) medical examination of
workers required of the employer at his own expense;
(7) maximum duration of contracts; (8) apprentice
ship contracts; and (9) recruiting of indigenous
workers.
Sarawak has no employment exchanges, either
government or private. However, according to the
provisions of the Labour Ordinance of 1952, (Pt.
III , ch . VIII , secs. 45–55 ), individuals may recruit
workers, provided they have or obtain a license from
the Commissioner for Labour; this license is valid
for 1 year and can be renewed for an additional year,
but the Commissioner for Labour can cancel it for
failure to comply with the above sections of the
Labour Ordinance . Generally, recruiting of workers
is on an informal basis. The employer apprises his
work force of vacancies; he may also advertise in
59
newspapers or magazines, or notify unions of
vacancies.
Section 119 of the Labour Ordinance of 1952
prohibits the employment of immigrant workers
without prior approval , in writing, from the Com
missioner for Labour ; recruitment of immigrant
workers is restricted to those who possess skills not
available among the local workers.
The statutory provisions relating to the contract
of employment in Sabah are contained in the Labour
Ordinance of 1948 , as amended , and are similar to
those contained in Sarawak's Labour Ordinance of
1952 .
Sabah's Department of Labour and Welfare
operates at least three employment exchanges, at
Jesselton , Sandakan , and Tawau. Prior to Septem
ber 1963, these employment exchanges were used
principally in placing Indonesian and Filipino im
migrant workers in the agricultural and lumber
industry . Since September 1963 , they have been
used increasingly by local workers seeking agricul
tural jobs and domestic service and also by school
leavers. However, the number of people using the
employment exchange is still quite small. Hiring
is usually on an informal basis and follows a pattern
similar to that in Sarawak.
The recruitment of immigrant workers in Sabah is
governed by section 118 of the Labour Ordinance of
1948 , and is subject to the same restrictions as in
Sarawak
On a Malaysia -wide basis , according to labor
leaders and wage and salary earners, there is evidence
of nepotism, not so much by influence in job place
ment as by advance information to relatives about
job openings. Favoritism in hiring may extend not
only through family, including relatives, but also
through race, clan, village of origin, state of origin,
and dialect group. Although this practice has some
advantages for the employer (since a supervisor
feels responsible for the performance of his relatives
or friends) , dissension over favoritism may lessen
efficiency, lower morale, and promote friction in
work relationships.
Notice Periods and Separations
Peninsular Malaysia's Employment Ordinance of
1955, the Singapore Labour, Clerks' Employment
and Shop Assistants' Employment Ordinances of
1955 , 1957, and 1957, respectively, the Sarawak
Labour Ordinances of 1952, and the Sabah Labour
Ordinance of 1948, contain provisions concerning the
60
termination of employment contracts or dismissals.
Some variations are evident in these laws .
In peninsular Malaysia, according to the Employ
ment Ordinance of 1955 , all employment contracts
must contain a clause stating how the contract may
be terminated by either party. Contracts for a
definite period or for the performance of specified
work terminate when the period or work is com
pleted . A contract for an unspecified period con
tinues in force until terminated by either party
giving advance notice, orally or in writing, of at
least 1 month including the day the notice is given.
In either type of contract, the notice period is
extended when a collective agreement provides for a
longer notice period ; in such a case, 6 months is the
maximum notice period . Contracts may also be
terminated by either party without notice or before
the notice period ends if either party pays to the other
an indemnity equal to the amount of wages which
would have been earned by the “ labourer” during the
notice period or during the period from the date of
termination of the contract to the expiry of the
notice period . Contracts can also be terminated by
either party for special reasons . For example , an
employer can terminate an employment contract
without notice on grounds of misconduct, or if the
worker is absent for more than 1 day without leave
or an acceptable excuse. A worker may terminate
his contract without notice on the grounds of ill
treatment by his employer or if he is exposed to the
risk of disease or injury which he did not by his
contract undertake to incur.
Peninsular Malaysia has no statutory provisions
concerning severance pay. However, a number of
peninsular Malaysian collective bargaining agree
ments contain provisions covering reduction in
force because of decreased production or business
activity. Usually, the employer informs the union of
the names, categories, and grades of employees to be
laid off not later than 2 months prior to the layoff
date, and the employees are informed by the employ
ers at least 1 month prior to their release . The
collective agreement also contains a provision allow
ing an employee to appeal a retrenchment order
through normal grievance procedures. Employees
covered by such a contract who are terminated
through a reduction in force receive a lump-sum
severance benefit established through collective
bargaining or determined by the Industrial Court ;
in the latter case, the determination or award of the
Court is binding. The lump-sum payment is gen
erally made only to employees or workers with a
minimum of 12 months' continuous service and is
calculated on the basis of normal pay only, exclusive
of overtime earnings, bonus or deferred wage or
salary payments, traveling expenses, meal or any
other allowances. The collective agreements also
contain provisions which give preference in any new
vacancies to employees who have been laid off by
reduction in force.
In Singapore, as provided in the Labour, Clerks'
Employment, and Shop Assistants' Employment
Ordinances of 1955 , 1957, and 1957, respectively,
either the employer or the employee may at any
time notify the other party that he intends to ter
minate the contract. The length of the notice period
is the same for both ; if not specified in the contract,
it must equal the salary or wage period , or if no
such period exists, the notice period must be 1
month. If the employed person has worked for
the employer for not less than 7 continuous years,
then 2 months' notice is obligatory. The notice
must be written and may be delivered at any time,
the day of delivery being the first day of the notice
period.
Either party may terminate the contract without
notice or before the notice period expires ; if so, he
must pay to the other party an amount equal to
the salary or wage that would have accrued to the
employed person during the notice period. Either
party, moreover, may terminate the contract upon
a willful breach by the other of one of its conditions,
and the employer may dismiss an employee or
worker without notice on grounds of misconduct.
To collect payments in lieu of notice, the employer
may deduct from salary or wages, and both parties
have access to the Labour Courts. In practice,
however, employers (unlike employees) seldom
institute Labour Court proceedings .
Even though Singapore employers comply with
the statutory provisions on termination of employ
ment contracts, unions, according to union leaders,
often demand either reinstatement or severance pay,
and employers often grant severance pay either to
prevent or to settle strikes.
As in peninsular Malaysia, most collective bar
gaining agreements in Singapore contain provisions
on termination of employment through reduction
in force as a separate category and usually specify
the amount of reduction-in-force benefits (usually
one-half month's salary or wage for each year of
service) . No such benefits are paid probationary
employees or workers. More important than the
amount of benefits payable appears to be the inclu
sion of a clause requiring consultation with the
union and an advance notice (the period generally
being specified) when the employer considers a
reduction in force necessary. A clause most often
incorporated in collective agreements on reduction
in force is " last in, first out” so that the longer the
service, the greater the job security. In some collec
tive agreements a supplementary clause “ last out,
first in ” is also found.
The statutory provisions on notice periods and
separations in Sarawak and Sabah are contained in
the Labour Ordinance of 1952 and the Labour Ordi
nance of 1948, respectively, and are similar. For
example, either party to an oral employment agree
ment for a specified period may terminate the
agreement on the expiration of a due notice as
agreed, provided that in no case shall it be necessary
to give notice exceeding 1 month or, in the case of
domestic servants, 14 days. The notice may be
either oral or written and may be given at any time,
the day on which notice is given to be included in
the notice period. Moreover , either party may
terminate an agreement without notice upon pay
ment to the other party of a sum equal to the amount
of wages which would have accrued during the
notice period . An employer may dismiss a worker
without notice for the following: (1) Misconduct,
whether in the course of his duties or not, inconsist
ent with the fulfillment of the express or implied
conditions of the employment agreement; (2) dis
obedience to lawful orders of the employer ; (3) lack
of skill which the worker warranted himself to
possess ; (4) habitual or substantial neglect of duties ;
and (5) absence from work without authorized leave
or a valid excuse. An employment agreement may
also be terminated by the Commissioner for Labour
(Sarawak) or Commissioner for Labour and Welfare
(Sabah) if the employed person is subject to ill
usage in person or property, and the Commissioner
may by such order award the worker compensation .
Every written employment contract in Sarawak
and Sabah must contain a clause defining the dura
tion of the contract. Such contracts terminate at
the end of the specified period ; they terminate at
the death of the employer or worker without prej
udice to any legal claims, such as the right of the
worker to wages earned, any deferred pay due him,
and any compensation due him in respect of accident
or disease . Contracts may also be terminated : ( 1)
By mutual consent of the parties thereto ; (2) by
either party giving to the other notice of such ter
mination in accordance with the terms of the con
tract (the minimum requirements are — where the
duration of the contract is for more than 1 month
the notice period must be at least 14 days and may
61
be given only after 1 month's employment, or,
where the duration of the contract is for 1 month
ar less, the notice must be at least 7 days) ; and (3)
by the Commissioner for Labour and Welfare
(Sabah) for the same reasons as pertain to oral
agreements.
Most collective bargaining agreements in Sarawak
and Sabah contain provisions on reduction in force ;
the practice on retrenchment is similar to that in
Singapore.
Disciplinary Actions
The statutes governing discipline are peninsular
Malaysia's Employment Ordinance of 1955, the
Singapore Labour, Clerks' Employment, and Shop
Assistants' Employment Ordinances of 1955 , 1957 ,
and 1957, respectively, and the Sarawak and Sabah
Labour Ordinances of 1952 and 1948, respectively.
Most collective agreements contain general clauses
concerning discipline applicable to employees or
workers. Usually, the general clause on discipline
will contain the following items : Misconduct ,,
indiscipline, inefficiency, or any breach of the
provisions of the collective agreement, or contraven
tion of any other conditions of employment or rules
and practices of the company. Company work rules
which list offenses subject to disciplinary action are
usually posted in a conspicuous place, or a copy is
given to each employee.
Malaysian unions are concerned about disciplinary
actions, although the degree of concern varies, as
evidenced in collective agreements. A few collective
agreements list in detail the kinds of offenses subject
to disciplinary action. The list may include some or
all of the following: ( 1) Gambling, including operation
of pools, raffles, or punch boards; (2) abusive
Chapter XI. Hours of Work and Premiums
Hours of Work
The length of the workday and workweek in
Malaysia is subject to the provisions of the following
labor laws : ( 1 ) Mainland Malaysia's Employment
Ordinance of 1955 as amended, the Wages Regula
tion (Shop Assistants') Order of 1963 ; and the Chil
dren and Young Persons' Ordinance of 1947 ; (2)
Singapore's Labour Ordinance of 1955, Clerks'
Employment Ordinance of 1957,40 and the Shop
40 Singapore's Clerks' Employment Ordinance of 1957 limits the weekly
hours of work for clerks to 39 and for industrial clerks to 44 .
62
language ; (3) fighting or intimidation ; (4) posting or
distributing signs, cards, or notices, and soliciting in
any form without obtaining permission from the
employer, except for union business ; (5) sleeping
during working hours ; (6) loitering, or leaving the
workplace before quitting time ; (7) repeated failure
to meet established standards of production; (8)
leaving the assigned work area during working hours,
except under emergency circumstances, without
permission of the superior ; (9) intoxication ; ( 10)
refusal to accept company authority; (11) refusal to
perform work assigned by a superior or other
supervisor, provided such assignment is justified in
the circumstances; ( 12) refusal or failure to obey
safety rules ; (13) carelessness resulting in injury or
property damage ; ( 14) deliberately punching the
time clock for another employee ; ( 15) theft or
dishonesty; (16) willful damage to property of the
company or of other employees ; ( 17) absence or
tardiness without notification or valid excuse ; ( 18)
chronic absenteeism without valid reason ; and ( 19)
chronic loafing.
There is no set procedure for notification of dis
ciplinary action unless a procedure is set forth in a
collective bargaining agreement. The initial notice
may be either a verbal reprimand or a warning
letter or both, with notification to the union.
Depending on the gravity of the offense, the initial
step may be suspension or discharge from employ
ment. In the case of suspension , the employer may
investigate further whether an employee or worker
should receive a more or less stringent penalty, e.g. ,
dismissal with or without notice, or some lesser
punishment, including suspension without pay.
Usually suspension without pay lasts for 1 week, and
suspension for the purpose of investigation is limited
to 2 months with or without pay.
Assistants' Employment Ordinance of 1957 ; (3)
Sarawak's Labour Ordinance of 1952 ; and (4)
Sabah's Labour Ordinance of 1948 .
Generally, these laws establish a basic maximum
workweek of 6 days or 48 hours, with specific pro
visions for overtime pay. Some variations exist in
regard to hours of work for young people. For
example, mainland Malaysia's Children and Young
Persons' Ordinance of 1947 prohibits employment of
children 8 to 12 for more than 4 hours a day; of
those 12 to 14 for more than 6 hours a day; and
those 14 to 18 for more than 8 hours a day.41
Singapore's Labour Ordinance of 1955 prohibits
employment of young persons under 14 for more
than 6 hours a day, and those 14 to 16 years for
more than 8 hours a day. Sarawak's and Sabah's
Labour Ordinances of 1952 and 1948, respectively,
provide that the government may prescribe the
terms and conditions for employment of children in
any trade or undertaking or in any occupation.
The statutory limitations on hours of work can be
disregarded in case of accident, urgent work to be
done to electrical installations or machinery , or an
interruption of work which it was impossible to
foresee and is not of a recurring character; this
suspension of statutory limitations is permissible
only in so far as may be necessary to avoid serious
interference with the ordinary working of the enter
prise.
Most collective bargaining agreements contain
provisions on hours of work; some even specify the
exact time periods in the workday. Maximum
weekly hours of work vary from 36 (usually for
office staff) to 48 .
In practice, the workday generally consists of 8
hours, 5 days a week with a 30 -minute meal break,
and 4 to 6 hours on Saturday. Many offices through
out Malaysia have a 39 - hour workweek.
Nightwork
Statutory limitations on nightwork apply to
women and young persons. For example, mainland
Malaysia's Employment Ordinance of 1955, as
amended , stipulates that no female " labourer ”
shall work in any industrial or agricultural estab
lishment between the hours of 10 p.m. and 5 a.m.
(Pt. VIII, sec . 34) . According to the provisions of
the Employment (Employment of Women) ( Female
Conductors) Regulations of 1958 , any female
laborer employed under the Public Services Vehicle
(Control of Drivers and Conductors) Regulätions of
1952 and licensed as a conductor of a public service
vehicle, may work between 10 p.m. and 1 a.m.
(sec. 2) notwithstanding the provisions of the
Employment Ordinance of 1955 ; however , the same
41 In mainland Malaysia children of 8 to 12 years may only assist their
family or community group in light agricultural or domestic work. Gen
erally, the earliest age at which a child may obtain gainful employment is
12 years, but if the employment is in a factory, warehouse, or workshop
the minimum age is 14. The same applies to employment in the port and
shipping industries. In commercial entertainment, children under 12
may not be employed except for charity performances organized by schools
and youth clubs and other nonprofit organizations. Children between 12
and 17 may be employed only if a license has been obtained from the
Commissioner for Labour.
law also stipulates that no female laborer referred to
in section 2 shall work between 1 a.m. and 5 a.m.
(sec . 3) . Special permission must be obtained in
writing from the Commissioner for Labour to employ
children ( 12 to 14) in light agricultural and indus
trial work and, otherwise than in agricultural work ,
no child can be employed between 8 p.m. and 8 a.m.
(Pt. X, sec. 51 ( 1) of the Employment Ordinance of
1955) . The same law, section 53(2) , prohibits the
employment of young persons ( 14 to 16) otherwise
than in an agricultural enterprise between 10 p.m.
and 6 a.m. without special written permission of the
Commissioner for Labour.
In practice, mainland Malaysian employers pay
a premium for nightwork. Usually this is a set
figure (generally M $ 20 - M $ 30 a month) established
through collective bargaining, which varies accord
ing to the time worked. For example, the shift
following regular working hours receives a nightwork
premium of about 33 percent less than the later
shift.
In Singapore, the Labour Ordinance of 1955
forbids an employer to assign females and young
persons (any person who has completed his 14th but
not his 16th year) to nightwork between 10 p.m.
and 5 a.m. (Pt . IV , sec . 50) .
A number of collective bargaining agreements in
Singapore contain clauses setting out specified
premiums (usually M$20 to M$30 a month) for
night shift work. Although many collective agree
ments are silent on nightwork premiums, the prac
tice generally is to provide them.
The almost identical statutory provisions on
nightwork in Sarawak and Sabah are contained in
their Labour Ordinances of 1952 and 1948 respec
tively. These laws prohibit the employment of
females between 10 p.m. and 7 a.m. , of young per
sons (under 16) between 10 p.m. and 6 a.m. , and
those 16 to 18 between 10 p.m. and 7 a.m. In a
serious emergency when the public interest demands
it the respective state governments may suspend
the restrictions on nightwork in so far as they
affect young persons 16 years and over and women
(secs. 74, 75, and 76 in Sabah's Labour Ordinance
and sections 75 , 76, and 77 in Sarawak's Labour
Ordinance ) .
Some collective bargaining agreements in Sarawak
and Sabah contain provisions requiring premium
pay for work after regular working hours. The
premium payment is usually time and one-half for
each hour of work .
63
Overtime Premium
Minimum overtime premiums for overtime work
in peninsular Malaysia are limited to shop assist
ants under the provisions of the Wages Regulation
(Shop Assistants') Order of 1963 as set up under
the Wages Councils Ordinance of 1947 (sec. 12) .
This order stipulates that work in excess of 8 hours
a day shall be paid at one-and-a-quarter times the
hourly rate (sec . 5) . The Employment Ordinance
of 1955 is silent on overtime premiums ; however,
the Employment (Amendment) Act of 1961 (an
act to amend the Employment Ordinance of 1955,
Parts XII, Days and Hours of Work, and XVII,
Offenses and Penalties, specifically sec. 96) which
has not yet been declared in force by the Minister
for Labour, provides for overtime at one and one
half times the normal pay for work on the seventh
day, except for shift workers on a 56 -hour week 42
who must be paid at least one -and -a -quarter times
the normal pay for work on the seventh day.
In practice, peninsular Malaysian employers usually
pay time-and -a -half overtime premiums on regular
working days, including Saturdays . Overtime on
Sundays and public holidays is at double time.
Usually, collective bargaining agreements contain
detailed provisions on overtime premiums.
Singapore employers are required by the provi
sions of the Labour, Clerks' Employment, and Shop
Assistants' Employment Ordinances of 1955 , 1957,
and 1957, respectively, to pay time and a half for
overtime work, and double time for Sunday or
another rest day substituted (by mutual consent)
therefor, and on holidays.
Many of Singapore's collective bargaining agree
ments contain clauses on overtime premiums. Some
provide for time and a half for work on Saturdays.
Generally, the practice is to pay time and a half for
all overtime, and double time for work on Sundays
and holidays.
Sarawak's Labour Ordinance of 1952 and Sabah's
Labour Ordinance of 1948 contain similar provi
sions. Employers are required to pay time and a
half for all overtime and for work on Sundays, and
double time for all work on holidays. Most of the
collective bargaining agreements in Sarawak and
Sabah contain provisions which meet or exceed the
minimum statutory requirements; for example, some
42 The Employment Ordinance provides that no laborer (worker) may be
compelled to work for more than 6 days in any week or for an aggregate
of more than 48 hours over the same period. The same applies to shift
workers, but they may be required to work a 56-hour week ; however, if
during the week following a proportionate reduction in work is mandatory
to bring the average down to 48 hours (Pt. XII, sec . 59 (4) ) .
64
provide for double time for work on Sundays. The
general practice is to pay overtime premiums of
time and a half for overtime on regular work days,
and double time for work on Sundays and public
holidays .
Paid Leave
Apart from paid holidays, and apart from paid
leave given by the government to public servants,
the statutory provisions on paid leave for certain
areas of mainland Malaysia 43 are embodied in the
Wages Regulation (Shop Assistants') Order of 1963 ,
established according to the provisions of the Wages
Councils Ordinance of 1947 (sec . 12 ) . Section 7 of
the order stipulates that a worker is entitled to 10
days' leave a year on full pay for each completed
year of employment (exclusive of the statutory
holidays under the Weekly Holidays Ordinance of
1950) . A worker who has not completed a year of
employment is entitled to annual leave on full pay
in proportion to the number of completed months'
employment, and all annual leave must be granted
by the end of the calendar year. Otherwise, paid
leave is a subject for collective bargaining.
Generally, mainland Malaysia's collective bar
gaining agreements contain clauses on paid annual
leave. Considerable variation exists in the number
of days provided-i.e. , from 7 days to 1 month
when annual leave may be taken, and whether such
leave may be accumulated . Usually, annual leave
is set at a time mutually satisfactory to employer
and employee. The collective bargaining agree
ments also specify the maximum time limits (gen
erally 2 to 4 years) that annual leave may be
accumulated . Annual paid leave is usually based
on length of service .
Other than mainland Malaysia's Wages Regula
tion (Shop Assistants') Order of 1963 which stipu
lates that workers shall be entitled to 15 days' sick
leave a year on full pay (for those who have not
completed a full year's employment, sick leave is in
proportion to the completed months of service) ,
there are no statutory provisions concerning paid
sick leave.
Paid sick leave in mainland Malaysia is a subject
for collective bargaining, and most collective agree
ments contain provisions on sick leave, with con
siderable variation. For example, some collective
43 The towns of Seremban, Johore Bahru, Kota Bharu, Alor Star,
Juantan, the city of Georgetown, the municipalities of Malacca and Ipoh,
and the Federal Capital of Kuala Lumpur .
agreements provide up to 30 days' full paid sick
leave, and an additional 30 to 120 days at half pay ,
depending on the length of service; others provide
for 28 days' paid sick leave. Some provide for
additional sick leave beyond the days stated in the
agreement, depending on the circumstances of each
case . In addition, some collective agreements pro
vide for a maximum of 12 months' sick leave at
full pay and 12 months at half pay, depending on
the person's length of service with the employer, for
prolonged illness (usually on a case-by-case basis
for tuberculosis, leukemia, cancer, and paralysis ).
Mainland Malaysia's Employment Ordinance of
1955 requires employers to provide maternity leave
to certain female workers as follows: Any woman
( 1 ) skilled or unskilled, who is engaged in manual
work under a contract of service other than as a
domestic servant; (2) who works as a driver of, or
attendant on, a mechanically propelled vehicle;
provided her wages do not exceed M $ 400 (US$ 132)
a month , any woman (3) employed in retail trade
or business ; (4) serving residents or visitors in a
boarding or lodging house; (5) serving members or
visitors in a club, society, trade union, or lodge ; (6)
employed as an usherette, ticket seller, caretaker or
servant at a theater or cinema ; and (7) working as
a day watchman, elevator operator, or hairdresser.
Female workers in mainland Malaysia who are
entitled by law to maternity allowances (at least
M $2.20 per day ) are also entitled to be on leave
from work for 30 days immediately before and 30
days after confinement, during which time they
receive the maternity allowance, provided they were
employed at any time during the 4 months preceding
confinement, and were employed by the same em
ployer for a total of 90 days or more during the 9
months immediately before confinement. Where
women had worked for more than one employer
during the above periods, the employer who pays
the maternity allowance may recover from such
other employers, as a civil debt, an amount propor
tionate to the number of days worked for each
other employer during the 9 months preceding
confinement.
Most collective bargaining agreements in mainland
Malaysia specify how and when such leave shall be
granted. Usually, an application , supported by a
certificate from a registered medical practitioner and
subject to verification by a company doctor, must
be submitted as soon as pregnancy is established .
Generally, maternity leave is at full pay for 2 months
to female employees or workers who have completed
a minimum of 12 months' continuous service;
maternity leave may commence only after comple
tion of the seventh month of pregnancy . Most
employers pay the second month of the maternity
leave only after the employee or worker returns to
work. If the employee or worker fails to resume
work without notification and without a recommen
dation from a registered medical practitioner,
employers can assume that the employment has
been terminated without notice . Usually, any
absence on account of illness during the first 7
months of pregnancy or after the maternity leave
ends is treated as normal sick leave .
Apart from the established public holidays,
employers in Singapore are required to provide at
least 7 days ' paid annual leave (at ordinary rate of
pay) to all workmen 44 according to the provisions of
Singapore's Labour Ordinance of 1955 (Pt. IV, sec .
47) . The Clerks' Employment Ordinance of 1957
provides that employers must allow 7 days ' paid
leave annually for industrial clerks (any person
employed in clerical work complementary or super
visory to workmen and whose salary is not more than
M$500 (US$ 165) per month, unless otherwise set by
the Minister for Labour; industrial clerks include
telephone operators, office boys , and other categories
that the Minister for Labour may designate) and
14 days' paid leave annually for clerks (any person
employed in or about the business of an office whose
salary is not more than M$500 per month unless
otherwise set by the Minister for Labour ; does not
include management personnel, workmen , or domes
tic servants) . The Shop Assistants' Employment
Ordinance of 1957 requires employers to provide 7
days' paid annual leave to shop assistants (any
person employed in or about the business of a shop
other than in an office or clerical department or in
a position of management, whose salary is not more
than M $ 400 per month unless otherwise set by the
Minister for Labour) .
Most collective bargaining agreements in Singa
pore contain detailed provisions concerning annual
leave , many of which exceed the statutory mini
mums. A graduated scale of days of leave varies in
proportion to years of service . As an example , a
collective agreement may provide for 14 days of
leave after completion of 1 year's service, 16 days for
44 Workman is here defined as an artificer and journeyman or any person
engaged in manual labor who has entered into or works under a contract of
service with an employer; the term includes any person , other than clerical
staff, employed in the operation or maintenance of mechanically propelled
vehicles used for passenger transportation or for commercial purposes,
and any person employed partly for manual labor and partly for the purpose
of supervising in person any workman in the performance of his work. It
does not include a seaman or a domestic servant (Labour Ordinance of
1955, sec . 2) .
65
 2 to 4 years, 18 days for 5 to 9 years, 21 days for 10
to 19 years, and 24 days for 20 or more years of
service. The extent of paid annual leave varies
considerably, and in most instances leave must be
taken in one continuous and mutually agreed upon
period . Some agreements also allow for accumula
tion of annual leave for a maximum of 3 consecutive
years, after which the leave is forfeited .
Singapore's Labour, Clerks' Employment, and
Shop Assistants' Employment Ordinances provide
for 28 days of paid sick leave per annum, provided
the employee or worker has worked for the employer
for 12 months or more, and his physician certifies
the sick leave to be necessary .
Generally , the extent of sick leave is spelled out in
the agreement. Some collective agreements exceed
the minimum statutory requirements by providing
for more days with full pay, depending on length of
service, as well as up to 120 days at half pay.
Moreover, some collective agreements contain
prolonged illness clauses (for tuberculosis) which
amount to as many as 12 months' fully paid sick
leave and an additional 12 months at half pay,
depending on length of service .
Female clerks, female industrial clerks, and female
shop assistants (Labour Ordinance of 1955 , Pt. X,
secs. 98-100) are not entitled to paid maternity leave.
Other women workers are entitled to a total of 8
weeks' maternity leave , 4 weeks before and 4 weeks
after confinement. If a woman has worked for 180
days within the preceeding year, the employer is
required to pay her M $ 4 per day during her mater
nity leave; or if she has worked not less than 90 days
in the preceding 6 months, the pay is to be M$2 per
day.
Most collective bargaining agreements in Singa
pore contain clauses on maternity leave either meet
ing or exceeding the statutory requirements; how
ever, most agreements stipulate that maternity leave
eligibility begins only after a minimum service of 1
year with the employer. Nearly all collective agree
ments note that leave required for abortion, mis
carriage, etc. , before completion of the seventh
month of pregnancy is to be treated as normal sick
leave rather than maternity leave.
Many employers in Singapore also grant " com
passionate leave," varying from as little as 3 days
to as much as 21 days, for death of a family member,
and in other instances where emergencies arise
(usually determined by management) . Usually,
such leave is granted at the worker's regular rate of
pay .
66
Sarawak's Labour Ordinance of 1952, and Sabah's
Labour Ordinance of 1948, are silent on annual and
sick leave, thereby leaving such matters to collec
tive bargaining or to the employer . Generally ,
most employers grant annual leave ranging from
7 days per year for daily rated workers to 14 days
per year for junior clerical and other salaried staff.
Many small employers take the position that there
are sufficient public holidays to substitute for annual
leave.
A number of collective bargaining agreements in
Sarawak and Sabah provide for paid annual, sick,
and “ compassionate ” leave of from 14 to 21 days
depending on length of service ( 14 days for 1 to 7
years and 21 days for 7 or more years of service) .
Sick leave, usually not exceeding 28 days with pay
and upon certification of a medical practitioner, is
also provided for in some collective bargaining
agreements. Additional sick leave may be granted
by the employer, depending on the circumstances of
each case . “ Compassionate leave” is usually
specified for emergencies and for death or serious
illness of a member of the worker's immediate
family.
Employers in Sarawak and Sabah are required to
provide maternity benefits of 4 weeks before and 4
weeks after confinement to all female workers under
Sarawak's Labour Ordinance of 1952 and Sabah's
Labour Ordinance of 1948. The benefit is deter
mined by length of service in the year immediately
preceding confinement. For example, if the em
ployee has worked 180 days within the preceding
year, maternity leave pay is one-sixth of her average
earnings 45 during the year preceding confinement
leave; or if she has worked not less than 90 days in
the preceding 6 months, maternity leave pay will
be one-sixth of her earnings during the 6 months
preceding confinement.
Periodic Rest Day Premium
Peninsular Malaysia's Employment Ordinance of
1955 prohibits employment on more than 6 days
in any one week without 1 day of rest (secs. 54 and
58) . The Employment (Amendment) Act of 1961 ,
not yet in force, reaffirms the prohibition on work
for more than 6 days in any one week, but stipulates
that any worker who , with the consent of his em
ployer, works for more than 6 days in any one week,
45 Earnings include wages, and any allowances, and the value of any
food, fuel, or quarters supplied to the worker, but do not include overtime
pay or value of any travel allowance, or contribution paid by the employer
toward any pension or provident fund. Labour (Maternity Benefits)
Rules Rules of July 1954, Section (2) for Sarawak .
must be paid at least one and a half times his customary for employers to grant paid holidays on
normal wage for such work (sec. 3) . The Weekly all national or State holidays, including the following:
Holidays Ordinance of 1950, as amended, provides
Official birthday anniversary of His Majesty the
for a weekly rest day with pay for persons employed Yang di-Pertuan Agong June 6
in shops, restaurants, and theaters. In addition, Malaysia Day -- August 31
every shop not exempted 46 must remain closed on Official birthday of the ruler or governor of the
substate concerned .. Variable
either Friday or Sunday. The exempted shops do
not have to be closed on any special day, but the There are some 4 to 6 additional festival holidays
employees must have 1 day off each week. (Chinese, Indian, and Muslim) which are agreed
Generally, Sunday is considered a weekly holiday, upon between management and labor. Collective
except for Muslims, who recognize Friday as their bargaining agreements usually provide for public
sabbath. Some collective bargaining agreements holidays , but refer to such holidays only in general
have clauses which provide for as much as double terms .
time for any work on such days. There is at least one exception to the standard
In Singapore, the Labour, Clerks' Employment, practice on holidays in mainland Malaysia. Al
and Shop Assistants' Employment Ordinances all though the general practice is from 3 to 9 paid
require employers to grant 1 rest day per week. holidays per year, a large number of Chinese tin
This is not necessarily Sunday; some firms close on mining enterprises have no paid legal holidays.
Friday, the Muslim holy day, instead. The Clerks' Instead , many Chinese owners give their mine
Employment Ordinance and the Shop Assistants ' workers elaborate feasts, including luxury foods,
Employment Ordinance provide that no employer cigarettes, and alcohol, on Chinese festival days.
may compel a clerk , an industrial clerk, or a shop Premiums of time and a half and double time,
assistant to work on a rest day ; the Labour Ordi however, are paid to those workers who must work
nance, however, allows work on rest days if the on such festival days.
nature of the work necessitates shifts. All three
ordinances require employers to pay double time for Singapore's Labour Ordinance of 1955 requires
rest-day work . An employer and an employee may an employer to grant 11 paid holidays annually to
substitute another day for the usual rest day by workmen ; the Clerks' Employment Ordinance of
agreement if the substitute day is within 3 days 1957 stipulates 16 paid holidays for clerks and 11
(before or after) of the usual rest day. paid holidays for industrial clerks; and the Shop
Assistants' Employment Ordinance of 1957 provides
In practice, most employers in Singapore pay 11 paid holidays for shop assistants. However, as
double the ordinary rate of pay or more for work
a matter of practicality, many employers grant
performed on a rest day. identical paid holidays to all employees and workers.
The Labour Ordinances of Sarawak and Sabah
The paid holidays for workers, industrial clerks, and
require employers to pay a minimum of one-and shop assistants are :
a -half times the ordinary rate of pay to all who Name Religion, if any Date
work on their rest day—usually Sunday, or another Chinese New Year's Day- Variable.
rest day mutually agreed upon. Thaipusam
Good Friday
Hindu
Christian
January 18.
Variable.
Some collective bargaining agreements in Sarawak Labour Day - May 1 .
Wesak Day --- Buddhist Variable.
and Sabah contain provisions on rest days. It is State National Day and the Birthday of
the general practice, where necessary to employ the Yang di-Pertuan Agong- June 2.
Hari Raya Puasa Muslim Variable.
workers on Sunday or the agreed -upon day of rest, to Hari Raya Haji . Muslim Variable.
pay from time and a half to double time for such Prophet Mohammed's Birthday - Muslim July 11 .
work . Malaysia Day August 31 .
Deepavali.. Hindu October 23 .
Christmas Christian December 25.
Holiday Premium
Additional paid holidays for clerks are :
Mainland Malaysia's Employment Ordinance of New Year's Day
1955 does not list public holidays. However, it is The day after Chinese New Year's Day
The day after Good Friday
46 Exempted shops include gas stations and motor vehicle repair shops, Easter Monday
funeral establishments, pharmacies, ship supply shops, livery stables, shops
producing ice by artificial means, shops selling or distributing newspapers, First Monday in August
and grocery stores selling perishable foodstuffs. The day after Christmas

67
 Whereas workmen , industrial clerks, and sales
assistants have Labour Day as a paid holiday, clerks
do not . Another holiday is any “ polling day” for
the election of Legislative Assembly members. If a
holiday falls on a Sunday, the law establishes the
following Monday as a paid holiday. Apart from
the holidays listed , Singapore has two bank holi
days , usually in July and December , but government
offices and businesses stay open on these days.
Few collective bargaining agreements in Singapore
mention public holidays other than in general
terms. Labor and management may by agreement
substitute any other day or days for any one or more
days listed officially as public holidays.
Employers in Sabah and Sarawak are required ,
under the provisions of the Labour Ordinances of
the respective states, to give their employees and
workers all public holidays with pay and , if work is
absolutely necessary because of an emergency , such
Chapter XII. Wages and Supplemental Payments
Base Pay
Malaysia has no nationwide or industrywide
standards for the determination of pay. Some
companies in Singapore and in the newly formed
industrial areas of peninsular Malaysia have
elaborate job descriptions and corresponding wage
gradations, while others have no system of job
classification for fixing and adjusting wages . In
peninsular Malaysia , wages in the European-owned
plantations, tin mines, commercial firms, and banks
are fairly well standardized by industrywide collec
tive agreements. There are no general minimum
wage laws in any part of Malaysia. However,
statutory provisions exist for the establishment of
wage councils to fix minimum wages and conditions
of employment where adequate machinery for collec
tive bargaining does not already exist. For example ,
peninsular Malaysia's Wages Councils Ordinance of
1947 allows the establishment of a wage council 47
to determine minimum remunerations and submit
recommendations to the Minister for Labour for
fixing minimum wage rates. Thus far only a few
wage councils have been established in peninsular
Malaysia. Sabah also has a Wages Councils Ordi
47 A wage council consists of three independent persons and as many
labor and management representatives selected by the government as are
necessary to represent their respective sides in the determination of
minimum remuneration for the workers affected .
68
work must be paid for at double time . The public
holidays include :
New Year's Day -- January 1
Chinese New Year's Day - Variable
Good Friday - Variable
Hari Raya Puasa - Variable
State National Day and the Birthday of the Yang di
Pertuan Agong June 2
Malaysia Day August 31
Christmas Day .. December 25
By agreement between labor and management,
any other day or days may be substituted for any
one or more of the days prescribed ; and , if any of the
public holidays falls on a Sunday or other rest day,
the day following immediately thereafter is sub
stituted .
The collective bargaining agreements in Sarawak
and Sabah usually contain a general clause referring
to public holidays as those declared by the respective
States .
nance ( 1960) which, although less comprehensive
than peninsular Malaysia's, has a similar purpose ,
and can be invoked when necessary , usually where
no collective bargaining machinery exists. Singa
pore's statutory provisions on wage fixing are con
tained in the Industrial Relations Ordinance of
1960 whereby , under section 38 , the Industrial
Arbitration Court can fix wages and salaries for the
purpose of settling a dispute or preventing further
disputes. Under the Labour Ordinance of 1955
(sec . 76 ( 1 ) ) Singapore's Minister for Labour can
prescribe minimum wage rates for children ( 12-14
years) or young persons ( 14-16) in any industry,
type of employment, or area . Otherwise , the Singa
pore Government has no part in the determination
of wages. Sarawak has no law relating to establish
ment of wages .
Except as otherwise noted by law, the levels of
pay depend on : ( 1 ) Employer-employee /worker
negotiation ; (2) employer-union collective bargain
ing; and (3) arbitration. Generally, from the em
ployer's standpoint, pay in Malaysia depends on
the degree of responsibility, difficulty of the job,
skill, education, and other occupational qualifica
tions of the employee or worker, area practice on
pay for similar occupations , and , in some instances ,
seniority. Social status is not a factor. Family
status is not relevant except in family-owned enter
prises , although there is some nepotism , especially
 TABLE 20. PENINSULAR MALAYSIA : AVERAGE DAILY AND MONTHLY EARNINGS ON RUBBER, COCONUT,
OIL PALM, AND TEA ESTATES, BY OCCUPATION , JULY 1962
[In Malaysian dollars 2)

Average Average Average Average Average Average

Estate and occupation daily rate of days monthly Estate and occupation daily rate of days monthly
pay worked earnings pay worked earnings

RUBBER OIL PALM

Liii

Foremen . 3.80 28 130.00 Foremen . 3.70 26 120.00

Tappers 2.80 26 86.00 Harvesters 3.20 22 97.00
Weeders 2.50 24 59.00 Weeders .-- 2.45 22 62.00
Arsenite sprayers 3.35 24 90.00 Arsenite sprayers . 3.30 21 93.00
Factory workers . 3.35 27 107.00 Transporters 3.00 23 82.00
!I

Pruners . 3.50 24 104.00

COCONUT Factory workers . 3.85 26 135.00
Foremen . 3.40 26 106.00
Harvesters 3.05 26 115.00 TEA
Weeders . 2.25 23 51.00 Foremen . 3.90 27 118.00
Huskers 2.40 2672 101.00 Pluckers 3.00 23 71.00
)
3
(

Huskers and splitters . 2072 96.00 Pruners . 3.20 24 87.00

Kiln workers . 2.85 25 74.00 Weeders . 2.65 22 67.00
Transporters 2.55 25 73.00 Factory workers. 2.50 24 89.00

1 Data based on a sample survey of 18, 44, 66, and 50 percent of rubber,
coconut, oil palm and tea estates , respectively.
2 M$1 = US $0.333.
3 Sample too small to obtain a reasonable average .
Note : Normal hours of work on estates were 7 to 8 hours per day. The
rubber estates are those of 100 acres and over while other estates are 25
acres and over .
SOURCE : Federation of Malaysia, States of Malaya, Department of
Statistics, Monthly Statistical Bulletin of the States of Malaya, September
1964 (Kuala Lumpur, 1964) , table 6. 1 , p. 136.

where hiring is conducted through informal channels
where a foreman may give preference to kinfolk
for available jobs. On the whole , management has
not been subjected to much pressure from govern
ment, political parties, or labor unions, especially
in Sarawak and Sabah, in the establishment of
base pay . However, the employer's freedom of
action in fixing base pay is becoming increasingly
subject to union endorsement.
Where statutory provisions exist for the fixing of
pay under certain circumstances , local and foreign
employers are treated equally, but public opinion,
labor unions, and both the national and state
governments, tacitly expect foreign employers to
be pacesetters in wage levels .
Salaries and wages vary in different parts of
Malaysia, but those in peninsular Malaysia and
Singapore are above the levels of many Asian coun
tries . As of July 1962 , tappers on peninsular Malay
sian rubber estates received an average monthly wage
of M$86 ; unskilled factory workers received M$89–
M$ 135 per month (table 20) . This pay did not
include fringe benefits which included medical
attention , housing on estates, and , in much of the
tin industry, free food amounting in value to about
M$37 per month.48
In a collective bargaining agreement dated July
27 , 1964, between the NUPW and the MPIEA ,
the wages of tappers employed by estates which are
members of the MPIEA were established on the
basis of a “ guaranteed factor," " output factor,"
and a " price bonus,” retroactive to February 1 ,
1964. According to this agreement,
the guaranteed factor was set at M$2.55 a day while the
average monthly price of rubber falls between 60 and 70
cents a pound based on the average of the daily noon buyers'
price for rubber in No. 1 bales f. o . b . Singapore, for the
month ending on the 20th of the preceding month, provided
that the guaranteed factor shall be increased or decreased by
10 cents for every 10 points or part thereof by which the
retail price index published by the Federation of Malaysia
Department of Statistics, rises above 125 or falls below 90 .
In addition , tappers receive an " output factor”
increase ranging from 8 to 12 cents per pound of
dry rubber in excess of an average of 4 to 14 pounds
of rubber, depending on whether the rubber area
is a low , high , or medium tapping area . Also ,
tappers receive a " price bonus” of 2 cents per day
worked for each whole cent by which the average
monthly price of rubber exceeds 70 cents a pound,
and provided that the " guaranteed factor” is
increased or decreased according to the retail price
index.49
The wages of plantation field workers, based on
the same average monthly price of rubber as appli
cable to the " guaranteed factor” above, according
to the provisions of the same NUPW/MPIEA agree
ment, were set as follows :
Malaysian dollar
Adult male workers:
Under 55 years - 3.10
55 years and over 2.90

48 Unless otherwise noted, the data on salaries or wages throughout the

remainder of this section are for base pay only. They do not include 49 Wage trends in peninsular Malaysia are influenced bythe volume of the
rubber and tin tradeand by the price these commodities bring in the world
fringe benefits. market .

69
 Malaysian dollars Monthly wage or Salary
Industry Occupation (Malaysian dollars)
Adult female workers: Chemical .------- Debt collector and assistant
Under 50 years - 2.50 cashier .-- 325- 340
50 years and over . 2.30 Debtor's clerk .- 310- 345
2.30 Cashier .---- 270- 330
!
Young persons (under 16 years )-- Records supervisor.-- 230- 295
Handicapped workers . 2.30
Accounting machine operator. 210- 235
Typist ---- 210- 225
Field workers receive the same “ price bonus” as the Assistant records clerk .--- 135- 180
Copy typist..
tappers. The wage provisions of the NUPW/ Telephone operator .
120- 150
170
MPIEA agreement remain in effect at least until Chief clerk .---- 260- 322
January 1966 . Petroleum ---- Manual workers- 170- 219
Pumpman, painter, crane
Peninsular Malaysia's tin enterprises paid con operator and driver .--- 200- 263
siderably higher wages in 1962 than the plantations Clerk, key punch operator,
typist, telephone operator,
(table 21 ) . In addition, the majority of the Chinese service station mechanic,
tin employers provided free food amounting in value sign painter, carpenter and
+
to about M$37 per month per person . Medical machinist ---- 240 , 345
Calculating machine operator,
benefits and hospital facilities were also available to employee relations clerk ,
most tin workers . and IBM machine operator . 300- 480
Audit clerk, payroll clerk, ship
Apart from the plantations and the tin industry, ping clerk, cashier, drafts
man, stenographer, and
samples (according to collective agreements) of some marketing clerk and cashier. 375- 625
salaries and wages paid by other industries for Senior clerk in marketing,
shipping and retail... 505- 835
various occupations in 1963–64, were as follows : Section head, operations as
Monthly wage or salary sistant, marketing expense
Industry Occupation (Malaysian dollars) analyst, systems analyst,
Banking - Nonclerical - 110- 241 travel services representa
Clerical .. 220- 790 tive, and office assistant.- 715-1,250

TABLE 21. PENINSULAR MALAYSIA: AVERAGE DAILY AND MONTHLY EARNINGS IN THE TIN INDUSTRY, BY OCCUPATION, JULY 1962
(In Malaysian dollars 1)
1
Average Average Average Average Average Average
Occupation daily rate of days monthly Occupation daily rate of days monthly
pay worked earnings pay worked earnings

TIN DREDGES CHINESE TIN MINES

Foremen . 12.90 26 446 Kepalas (foremen) 219
Kepalas (usually foremen of Assistant kepalas - (2) 156
Chinese tin workers) -- 6.60 2672 203 Clerks .- (3) 143
!!!

Workshop crew : Cooks . 1.50 95

i

Skilled (blacksmiths, Watchmen . (3) 93

fitters, turners, car Engine drivers:
penters, welders , 1st class certificate . (3) 29 160
electricians, and 2d class certificate . 28 113
patternmakers) . 7.90 26 244 No certificate .. 30 91
Semiskilled (hammermen , Chargemen :
and assistants to the With certificate .. (3) 29 160
skilled workers) . 5.80 2672 166 No certificate . (3) 30 80
Unskilled 4.70 2512 135 Excavator and bulldozer drivers . 5.80 29 141
Outside workers : Laborers :
Drivers . 6.95 26 202 Pong Sau 4 2.40 24 117
Unskilled men . 4.85 2542 136 Chap Kung and Kongsi
Unskilled women . 3.95 2672 105 Kung 5 1.85 27 104
Dredge crew: Female Chinese . 1.85 27 87
Skilled (includes charge Male Indian .. 2.30 28 116
men , boilermakers , Pok Chau workers:6
welders, and fitters) 7.90 26 237 Male (Chinese) 30 173
Semiskilled (includes Female (Chinese) . 8 27 125
steam engine drivers
and firemen ) 5.88 26 % 170
Unskilled .. 4.65 26 130
Truck drivers. 5.75 2572 166
Tin ore washers :
Men .. 5.45 26 165
Women . 4.75 2742 143
Apprentices . 4.70 26 136

1 One Malaysian dollar = US $ 0.333.
2 Paid by month only .
3 Sample too small to obtain a reasonable average .
4 The Pong Sau workers are more experienced in mining operations
than the Chap Kung and Kongsi Kong workers. Each mine usually has
1 or 2 Pong Sau workers, who act as general assistants, adaptable to any
manual mining operation required. Usually, they are classified as semi
skilled workers.
5 Chap Kung and Kongsi Kung workers are unskilled . Chap Kung
workers usually perform the more permanent work , and Kongsi Kung
worker3 the miscellaneous jobs. The earnings of these workers include
payments for special or emergency work done outside normal working
hours for which higher job rates are paid .
6 For a definition of the Pok Chau System see section on Hiring, p. 59.
7 Not available.
Note : Data based on a sample survey of 13 percent of Chinese tin mines
and 29 percent of the tin dredges.
SOURCE : Federation of Malaysia , States of Malaya, Department of
Statistics, Monthly Statistical Bulletin of the States of Malaya, September
1964 (Kuala Lumpur, 1964) , table 6. 2 , p. 137.

70
 Monthly wage orsalary
(Malaysian dollars ) Daily wages in 1963 ranged from M$2.83 for
Air conditioning - Serviceman .. 1704 260 unskilled workers to about M$12 for skilled workers,
Apprentice serviceman . 120- 145 as follows:
Carpenter---- 200- 215 Daily wage scale
Manual worker--- 110- 120 (Malaysian dollars)
Draftsman 295- 550 Turner ( lathe operator ). 6.92–11.10
1 Clerk .. 150- 550 Fitter.-- 5.27-10.04
Driver ... 144- 180
Salesman . 150- 310 Welder .. 5. 20- 8.81
Mechanic .. 4.17- 8.75
Managerial personnel receive M$700 per month Electrician . 5.90-10.13
and up. Generally, salaries and wages are highest Foreman . 8.05-11.62
Truckdriver 2.83- 4.67
in machinery and metal products manufacture,
construction, printing and publishing, and petroleum Many of the collective bargaining agreements
industries. currently in effect contain detailed wage rates by
Salaries and wages in Singapore are generally occupational grouping, and , in a number of agree
ments, even the names of the workers are listed with
higher than in peninsular Malaysia; they differ not their rates of pay . Wide variations exist in rates of
only according to skill level, but also by industry. pay for what appear to be similar occupations, except
According to the Singapore Labour Department's in the case of unskilled workers, whose rates of pay
Annual Report for 1961, the average weekly earnings are generally similar.
(base pay) for all workers at that time, by industry,
were as follows: Management personnel in Singapore receive
M $ 1,100 - M $ 1,200 and up per month . Generally,
Average weekly earnings women in management and nonmanagement po
Industry (Malaysian dollars)
All workers ----- 38.54 sitions are paid less than men , especially in non
Transport, storage, and communications. 43.05 management positions.
Utilities 40.49
Mining and quarrying- 39.81 Wage and salary levels in Sarawak and Sabah are
Manufacturing 39.54
Commerce . 37.21
generally lower than in peninsular Malaysia and
Services--- 36.67 Singapore. They have not changed materially since
Construction .-- 32.99
Agriculture, hunting, forestry , and fishing 22.39
1962 and 1963. According to appendix I, which
shows the prevailing rates of pay, by industry, in
In July 1962, the Singapore Department of Labour Sarawak's nongovernment establishments as of
conducted a sample survey covering some 92,000 January 1963 , the highest daily rates of pay were in
wage and salary earners in 52 principal industries. construction, where painters received M$8 per day,
The average weekly earnings for all wage and salary and in manufacturing. In the manufacture of wood
earners were M $42.82 as against M$38.54 in 1961 . and cork products, carpenters earned M $ 5 – M $ 10 per
Moreover, in regard to average earnings, the 1962 day, and in the manufacture of transport equipment
survey revealed that about 20 percent of the workers mechanics earned M$6.48–M$8.05 per day. Other
earned M$30 and under a week while about 33 high-paying industries in Sarawak include stone
percent earned between M$31 and M $45 per week , quarrying, where greasers received M $ 4.50 – M $ 5.50
and about 29 percent earned M $ 46 to M$56 per per day, and metal mining, where blasters received
week . The remainder (about 17 percent) earned an M $ 4 - M $ 6 per day. Monthly rates of pay were
average of M$51 and over a week . highest for carpenters in industries manufacturing
furniture and fixtures. The average daily wage for
Data presented by Singapore's Economic De
government daily rated personnel in Sarawak in
velopment Board show that monthly salaries for January 1963 was M $ 4 for unskilled , M$6 for
white collar workers in 1963 ranged from M$230 to semiskilled , and M$ 10 for skilled workers .
M $ 422, as follows:
Salary per month Some collective bargaining agreements in Sarawak
(Malaysian dollars)
General clerk .. 230 contain detailed provisions on job classifications
Accounts clerk . 335 and grades, defining the minimum duties and the
Bookkeeper 330 range of salaries or wages applicable to each classifi
422
Secretary ( stenographer) cation. At least eight collective agreements in
Sales demonstrator . 290
Draftsman . 330 Sarawak contain a clause in an appendix which
Copy typist - 260 provides for combining, as of December 31 , 1963,
260
Storekeeper the basic “ salary” with the cost -of-living and
71 1
 OOOOOOOOOOOOOOOOOOOOOOOOOOOO
TABLE 22. SABAH : AVERAGE DAILY WAGES, BY OCCUPATION AND MAIN INDUSTRY, 1962

Area Area
Hours Hours
Occupation by industry worked Occupation by industry worked
per day West coast , per day West coast ,
East coast Interior and East coast Interior and
Labuan Labuan

Agriculture estates : Sawmill :

Rubber : Master carpenters . 9.39 12.50
Tappers- 3.79 4.01 Engine drivers . 7.00 6.83
Rubber packers . 8 3.28 3.37 Launch engineers. 6.98
Rubber graders . 8 3.52 3.55 Boatmen . 5.24

.........
Factory workers . 8 3.83 4.06 Fitters . 10.64 10.72
Field workers . 8 2.86 3.53 Locomotive drivers .. 10.00 8.50
Mandors .- 8 6.06 5.28 11.39 11.00

OOOOOOOOOOOO
Bulldozer drivers .-
Coconut : Lumber squarers . 7.56 7.00
Harvesters . 7 6.25 Motorboat drivers .. 5.67 5.00
Field workers. 7 3.50 Tractor drivers .. 9.07 10.12
Hemp: Truckdrivers. 8.50 7.83
Fellers .. 4.11 Mill sawyers 9.54 7.17
Strippers . 4.15 Raftsmen .. 6.07 5.91
Peelers 4.53 Lumber yard workers . 5.00 4.40
Carriers . 4.50 Lumber camp workers . 4.68 5.00
Dryers . 3.93 Lumber concerns :
Balers . 4.36 Raftsmen .. 8 6.07 5.91
Other employments: Lumber haulers . 8 6.64 6.70
Public Works : Building construction :
00

OO
Carpenters 7.45 7.00 Master carpenters . 9.83 10.40
Fitters ... 9.29 8.25 Carpenters .. 7.33 7.98
Engine drivers. 8.33 Masons. 8.06 8.16
Truckdrivers 5.16 5.65 Fitters . 8.25 8.80
Laborers . 4.00 3.56 Blacksmiths . 7.12 7.26
Watchmen . 3.84 3.04 Concreters 8.06 8.16
Mandors. 5.08 Plumbers 10.00 8.83
Painters .. 8.33 7.69
Foremen . 10.00 10.00
Laborers . 5.25 4.68

SOURCE : Government Printing Office, North Borneo (now Sabah) , 1963) , table III , pp. 22–23 .
Report of the Department of Labour and Welfare for the Year 1962 ( Jesselton ,

marriage allowances, where payable, into a " con Most collective bargaining agreements in Malay
solidated salary.” sia contain clauses on bonuses, allowances, and
other benefits, but because of the many variations
In Sabah, almost all workers in the plantation throughout the country it is impossible to deter
and lumber industries are paid on a piece - rate mine, on a general basis, the proportion of base pay
basis, with the rates governed to some extent by as distinguished from premium pay , bonuses, etc.
world market prices of the commodities. Wages in
the lumber industry are generally higher than those Basic monthly salaries of government officials in
in agriculture, and in the towns and districts of the Malaysia are established according to divisions
(table 23) . Generally , superscale officials are
east coast, where the lumber industry predominates, university honor graduates, especially in peninsular
both wage rates and the cost of living are generally Malaysia. Other division I and division II officers
higher than in other areas of Sabah (table 22) . The
must hold at least a B.A. degree . Division III
highest daily wages in Sabah in 1962 were paid to
master carpenters, bulldozer drivers, fitters and
personnel must have education at least equivalent
to high school in the United States . Division IV
tractor drivers in the sawmill industry, and master personnel may or may not be high school graduates.
carpenters and foremen in the building construction
industry. Clerks, depending on their duties , In Sarawak, some personnel, scattered throughout
the various divisions, are professional and semi
responsibilities, and length of service, as of 1964,
received from M $ 150 to M $625 per month ; ap
professional; they include nurses, police, and prison
officials. Generally, salaries are higher in Sabah
prentices from M$95 to M$135 per month. Manage and Sarawak because these States are considered
ment personnel in Sabah were paid M $775 per
month and up. hardship posts.
The wage structure of peninsular Malaysia's
Some collective bargaining agreements in Sabah daily rated government personnel is the same in
contain provisions similar to those in Sarawak on both the National and State governments, and is
job classifications and grades, defining the mini based on the Malayan Daily-Rated Staff Manual of
mum duties in each classification and the range of 1956. Generally , the wages of daily rated personnel
salaries or wages applicable to a particular classifi are comparable to those in similar occupations in
cation . private industry .
72
 TABLE 23. MALAYSIA: APPROXIMATE BASIC MONTHLY which are usually provided by employers only to
SALARIES OF GOVERNMENT PERSONNEL, 1965 their uniformed staff, such as bill collectors, meter
[ In Malaysian dollars)
readers, messengers, and plant police. Only a few
Division Peninsular Singapore Sabah Sarawak collective bargaining agreements contain clauses
Malaysia
that provide for a gratuity payment in case of death
Division 1 : to an employee or worker, or in illness, or upon
Super scale : retirement. In the few instances where such pro
Maximum . 1,970 2,075 2,420 2,420
Minimum .. 1,107 1,520 1,470 1,470 visions exist, a minimum period of employment is
Others:
Maximum . 1,240 1,420 1,420 1,420
Minimum. 554 470 660 660 specified ; 5 to 7 years for a medical payment and
Division II :
Maximum 813 940 1,050 1,170 generally longer for payments in case of death or
Minimum .
Division III :
268 175 250 250 retirement. Payments are generally calculated
Maximum ..
Minimum .
751
85
760
122
620
135
620
135
either as 1 or 2 weeks' salary or wage per year of
Division IV:
Maximum . 250 400 350 350 employment, or a percentage of the person's last
Minimum . 71 87 100 85 salary or wage.
DivisionV :1
Maximum .
Minimum . 3 Some employers in Malaysia pay allowances for
special qualifications (advanced training, operation
1 Sarawak is the only area that has division V personnel. Professional of special equipment, etc.) ; others offer a higher
and semiprofessional personnel, including nurses, prison officials, and police,
receive from M $ 90 to M$865 per month. base pay instead . If an employee or worker
2 Not available.
NOTE : The salaries shown are still (April 1965) in effect. acquires new qualifications by on -the -job training
SOURCES: Peninsular Malaysia - Embassy of Malaysia, Washington, or night classes, these capabilities are a factor
D.C. Singapore - Government Printing Office, Singapore Civil Service
Manual of Salaries and Allowances, 1964 (Singapore , 1964) . Sabah considered in promotion. Employers in Malaysia
Department of Labour and Welfare. Public Service Salary Groups and
Scales ( Jesselton , Sabah 1964) . Sarawak - Government Printing Office . pay no hardship post differential, but some em
Sarawak Government Staff Lists 1963, Parts I - III (Kuching , 1962-63).
ployers pay additional amounts to employed
personnel suffering unusual hardship judged solely
Supplemental Payments on the basis of the merits of each case. Generally,
no allowances are paid for the cost of tools, but
Malaysia has no laws which require employers to employers usually provide the necessary tools. No
pay bonuses to their employees or workers ; however,
allowances are paid for travel to and from work;
most collective agreements contain clauses on however, a number of collective agreements contain
bonuses.50 Bonuses are seldom based on perform
clauses which specify that transportation or payment
ance, seniority, or cost of living.51 Many agree
ments specify annual bonuses, generally fixed at
thereof will be provided by the employer for those
working overtime outside the regular hours of bus
about 1 month's salary or wage. Some collective or other transportation service .
agreements provide as much as 212 months' salary
or wage as a bonus, while others stipulate that the Withholdings and Deductions
bonus shall not be less than 1 month's salary or
wage per year. Still others determine the bonus
The labor laws in Malaysia are quite detailed on
by a detailed sliding scale according to the amount
of profit made by the establishment in the particular withholdings and deductions from pay of workers
and employees. For example, under peninsular
year, but with a guaranteed minimum. Generally, Malaysia's Employment Ordinance of 1955 (Pt. IV,
the bonus is paid at the end of a calendar year, at sec. 24) , employers may make only the following
the end of a company's fiscal year, or prior to a major deductions from pay :
festival - such as Chinese New Year for Chinese
1. At the written request of the employee, payment to any
employees, Hari Raya Puasa for Muslims , Deepavali
registered trade union, or cooperative thrift and loan society,
for Hindus, and Christmas for Christians . of any sums owed for subscriptions, entrance fees, install
The most common supplemental benefits other ments on loans, interest, or other dues.
than bonus or cash payment are those pertaining to 2. Any overpayment made during the preceding 3 months
uniforms, shoes, and clothes for inclement weather, as the result of the employer's mistake.
3. The indemnity due an employer by the employed person
who terminates his contract of employment without notice,
50 Singapore's Industrial Relations Ordinance of 1960 stipulates that and deductions for the recovery of advances of wages from
bonuses are a proper subject for collective bargaining and also for determi such persons, usually not exceeding 1 month's wages.
nation by arbitration in the Industrial Arbitration Court ( sec. 38 (a)) . 4. Deductions authorized by any other written law, includ
51 Some collective bargaining contracts, however, especially in Singapore,
have clauses on temporary cost-of- living allowances which provide as much ing deductions for income tax purposes if requested by the
as 10 percent of base pay. employee.

73
 5. Deductions made with the prior permission of the
Commissioner for Labour as the Commissioner may specify,
provided that the Commissioner shall not permit any deduc
tion at the written request of the worker or employee for
payments into any superannuation plan, provident fund, or
thrift scheme established for his benefit; payment or payments
to a third party on the employee's behalf ; rental or accom
modation and cost of services, food and meals provided by
the employer to the worker or employee at the latter's request
or under the terms of his employment contract — unless the
Commissioner for Labour is satisfied that the making of such
payment or the provision of such accommodation , services,
food or meals is for the benefit of the worker or employee.
6. Where wage or salary earner obtains foodstuffs, provi
sions or other goods on credit from a shop operated by a
cooperative society registered under the Cooperative Societies
Ordinance of 1948, his employer may, upon written request ,
and in agreement with the manager of the cooperative shop,
make deductions from his wage or salary not to exceed the
amount of such credit , and pay the manager in satisfaction
of the employed person's debt.
The total amount deducted from wages in any one
month may not exceed 50 percent of the wages
earned during that month except for a deduction (1)
for indemnity due an employer because of termina
tion of employment without notice, or (2) from the
final payment of any wages due upon termination of
the employment contract.
Singapore's Labour Ordinance of 1955, Clerks'
Employment Ordinance of 1957, and Shop Assist
ants' Employment Ordinance of 1957, list the
deductions employers may make. These include
deductions for income tax, for the Central Provident
Fund, and for retirement funds or any lawful plan
established for the benefit of the employee or worker
and approved by the Commissioner for Labour .
They also include disciplinary deductions for
quitting without notice, for negligent loss or damage,
and for unauthorized absence from work, and
reimbursement deductions for the actual cost of
meals supplied by the employer at the request of the
employee, for housing, services and amenities sup
plied by the employer, and for the recovery of
advances, loans, and overpayments of salary or
wages. The employer may also make deductions for
subscriptions, entrance fees, loan installments, in
terest, and other dues payable by the employee or
worker to any registered cooperative society.
Of these deductions, none is compulsory except
that for the Provident Fund . Singapore, like
peninsular Malaysia, has no system for withholding
income tax from wages except at the request of the
employee or worker. Employers must make
deductions ordered by a court or other competent
authority (Commissioner for Labour). They may
not deduct for cost of tools. Deductions for damage
74
to , or loss of, goods, and for loss of money, may not
exceed 25 percent of salary in any one month for
clerks and industrial clerks, or 25 percent of wages
or M$50, whichever is less, for workmen and shop
assistants. Total deductions may not exceed 50
percent of salary or wage in any one month .
Sarawak's Labour Ordinance of 1955, and Sabah's
Labour Ordinance of 1948 as amended, list the
deductions employers may make from the pay of
their employed personnel. These include deductions
for any retirement scheme, provident fund, or
thrift plan established for the benefit of the employed
person and approved by the Commissioner for
Labour. They also include deductions made at the
written request of the worker or employee for the
purpose of remittance to a specified member of his
family ; deductions of any overpayment in salary or
wages because of the employer's mistake ; and
deductions for the recovery of advances on salary
or wages or for the cost of maintenance in hospital
of the employed person or any of his dependents,
provided that the employer continues to pay not
less than one- half the employed person's usual wage.
The employer may also make deductions ( 1) for
goods and services , including dwelling houses,
provided for the benefit of, and with the consent of,
the employee or worker, and approved by the Com
missioner for Labour, and (2) for damage to or loss
of goods entrusted to the employed person for
custody, if such damage or loss is attributable to
neglect or default. The total deductions may not
exceed 50 percent of wages or salary in any one
month .
Generally, employers in Malaysia observe the
statutory provisions on deductions. In practice ,
they make other deductions (including income tax
deductions ) only on government approval and with
the approval of the employed person.
Pay Changes
Pay increases in recognition of length of service,
efficiency, or increased responsibility are normally a
matter for negotiation either between employer and
employee or between employer and union.52 Em
ployers in Malaysia normally base pay increases
and promotions 53 on level of responsibility, seniority ,
demonstrated quality of performance, and amount of
52 Singapore's Industrial Relations Ordinance of 1960 makes pay in
creases a subject for collective bargaining, conciliation, and arbitration.
53 In many instances promotions are made on a probationary basis, and
higher pay does not begin until the probationary period (30 days to 6
months) has been satisfactorily completed . Usually, the salary or wage
is retroactive to the first day of promotion.
training. Cost of living may be a consideration for
pay increases. Most firms, however, have no formal
performance ratings ; instead they rely on informal
evaluations by supervisors. Some firms offer
incentive awards, while others may emphasize as an
incentive the opportunity for pay increases and
promotions. A monthly or, more customarily, an
annual attendance bonus to reduce absenteeism
may be paid. Some firms pay annual bonuses based
on length of service. Most prefer piecework rates,
thus linking remuneration directly to production.
Changes to duties involving less responsibility
may be made without difficulty if no reduction in
salary or wage is entailed, if the new job title
carries either equal or greater prestige, and if there is
no loss of face — which is particularly significant in
connection with morale. In practice, employers
keenly aware of the necessity to respect matters of
" face” generally make every attempt to avoid
demotions unless there is need for disciplinary
measures, in which case the matter is handled ac
cording to the provisions of a collective agreement,
an employment contract, or company rules on
discipline.
Pay Period Frequency
Peninsular Malaysia's Employment Ordinance of
1955 provides that an employment contract may
specify pay periods not exceeding 1 month. Em
ployers are required to pay their workers not later
than the seventh day after the last day of any pay
period unless permission is obtained from the Com
missioner for Labour for an extension of time .
Peninsular Malaysian employers usually pay on a
weekly, semimonthly (most favored ), or monthly
basis.
Under Singapore's Labour, Clerks' Employment,
and Shop Assistants' Employment Ordinances
employers must pay their workers and employees at
least once a month, but employers may establish
semimonthly, fortnightly, weekly, daily, or other
pay periods of less than 1 month . Many Singapore
employers pay industrial clerks weekly, every 10
days, fortnightly, or semimonthly ; clerks fortnightly ,
semimonthly , or monthly; and technical, profes
sional, and managerial personnel, monthly.
The Labour Ordinances of Sarawak and Sabah
require that where the wages of a worker are payable
monthly payment shall be made not later than 10
days after the expiration of the period for which
they are due . Each employment contract in
Sarawak and Sabah must contain a clause which
stipulates the pay period. Employers may establish
semimonthly, fortnightly, weekly, daily, or other
pay periods; usually, they pay their daily rated
personnel on a weekly or semimonthly basis, and
their technical, professional, and managerial person
nel on a semimonthly or monthly basis.
Travel and Transportation Expenses
No laws require employers to provide transporta
tion or to pay travel expenses of employees or
workers to and from work. Generally, government
and private industry either provide transportation
or reimburse employees or workers for the actual
cost of transportation and other expenses incurred
by them in the performance of duty away from their
normal place of work. Government reimbursements
are based on the rank of the person involved and the
distance traveled .
Many collective bargaining agreements contain
provisions on transportation . In most instances the
employer is to provide transportation or reimburse
ment to workers and employees who work overtime
and are unable to travel to and from work by bus
outside the normal operating hours of such buses.
In addition , many contracts stipulate that the
employer will provide transportation, or reimburse
the expense of transportation, to personnel who
work on rest days and paid public holidays. Some
agreements indicate specifically the amount of
allowances or reimbursement for transportation.
When personal automobiles are used, the allowances
range from 20 to 25 cents per mile, regardless of the
number of miles, or 25 cents per mile for the first
100 miles and 20 cents for each mile over 100 miles,
or 10 cents a mile for personal motorcycles or
scooters, or actual bus fare, or a flat rate of as much
as M $60 per month for transportation expense .
In addition to transportation allowances, several
collective bargaining agreements contain clauses on
subsistence allowances (when in travel status).
75
 Chapter XIII. Health, Safety , and Workmen's Compensation
Health and Sanitation
In many instances, health measures in Malaysia
are imposed by the local government in the exercise
of its powers to license industrial or commercial
undertakings. A factory, restaurant, or theater
may be subject to certain conditions of construction,
safety, and ventilation prescribed in the building
bylaws of the local government, and building design
may require approval of the local government acting
on the advice of the area's health officer.
In peninsular Malaysia, in addition to any local
government requirements on health and sanitation ,
the Rump Labour Code of 1933 (hereafter cited as
the Labour Code) permits officers of the Department
of Labour and Industrial Relations to set standards
for living accommodations available to workers in
the plantation, quarry, and tin industries. All new
site and building plans must be approved, and if
construction is not in accordance with government
specifications the labor officials may, on advice of
the area's health officer, order modifications or
even demolition. It is not incumbent on an estate
manager to provide living accommodation, but if he
does, it must conform to minimum standards on
water supply , sanitary arrangements, refuse disposal ,
and antimalarial facilities.
The Commissioner for Labour is empowered under
the Labour Code to direct an employer to supply a
specific quantity of wholesome drinking water as
recommended by health authorities .
Most of the larger agricultural estates have their
own hospitals, principally for the treatment of
minor ills of estate personnel. Employers are
required to staff the hospitals with enough medical
practitioners and other health personnel to provide
medical treatment, including diet in hospitals , and to
supply medicines .
All factories in peninsular Malaysia are required to
conform to the provisions of the Machinery Ordi
nance of 1953 and the Machinery (Safety , Health,
and Welfare ) Regulations of 1956. The Machinery
Ordinance of 1953 gives the Minister for Labour
authority to issue regulations for operation of
machinery to ensure , among other things, the health
and welfare of the operators. According to regula
tions, conditions and facilities in factories should
meet the following standards: (1) Effective means for
drainage of floors; (2) effective and suitable ventila
tion ; (3) maintenance of temperature which will
76
ensure reasonable conditions of comfort and prevent
injury to health ; (4) protection of personnel from
exposure to the elements; (5) cleanliness, to be
ensured by daily removal of rubbish, refuse , and other
waste matter, by lime washing or painting of the
walls , and weekly washing (hosing) of floors; (6)
spaciousness - specifically, in each work area , at
least 25 square feet of clear floor space per person
and at least 10 feet clear height between floor and
lowest part of ceiling (including cross beams) ; (7)
sufficient and suitable lighting ; (8) suitable protec
tive clothing , and appliances to protect against
glare, dust, fumes, and exhaust gases ; (9) a first aid
box in charge of a responsible person who (if the
installation employs more than 50 persons) must be
trained in first aid treatment, and , where more than
150 persons are employed , a suitable first aid room
with a table and couch ; ( 10) an adequate supply of
potable water from a public source ; ( 11 ) adequate
washing facilities, kept in a clean and orderly
condition ; ( 12) sufficient and suitable sanitary
conveniences, maintained and kept clean and reason
ably arranged for persons of each sex; ( 13) seating
accommodations for employed persons whose work can
be as effectively performed sitting as standing ; and
( 14) medical examination of any person employed in
any installation at the request of any labor or health
inspection officer. Penalties are provided for non
compliance . Collective bargaining provisions on
medical attention as well as medication at the
employer's expense are common in peninsular
Malaysia.
Although government installations and many
modern industrial establishments meet these require
ments , many others do not. Some leeway exists in
interpreting such statutory words as " effective ,'
" suitable ," " sufficient,” “ adequate,” etc. Many
employers , however, provide better medical facilities
than the statute requires , as well as free medical
examinations, and free medicine . Some few em
ployers maintain clinics .
In Singapore , apart from some health and sanita
tion requirements (building construction and potable
water supply ) enforced by local government, the
Factories Ordinance of 1958 governs health and
sanitation in factories . The statutory provisions in
reference to health and sanitation are similar in
many respects to those in peninsular Malaysia's
Machinery (Safety, Health, and Welfare) Regula
tions of 1956. As in peninsular Malaysia, govern
 ment installations and some industrial and com
mercial establishments meet the requirements on
health and sanitation , but many others do not.
There is the same leeway in interpreting statutory
words. Many Singapore employers also provide
better medical facilities than required , and many
provide free medical examinations.
As in peninsular Malaysia, almost all collective
bargaining agreements in Singapore provide for
medical attention and drugs, prescribed by a doctor,
at the employer's expense . A large number of
collective agreements also provide that the employer
will furnish hospitalization (second- or third-class
accommodations), depending on the employee's
occupation. In some agreements, the employer's
liability for hospitalization benefits is limited to 28
days; usually, such eligibility begins after a minimum
of 1 year's service. Provisions in collective agree
ments for surgical attention required by workers and
employees are more varied than those for medical
attention. Though some agreements stipulate that
all such expenses shall be met by the employer,
others limit his liability to a maximum amount, e.g. ,
M $500, and in at least one agreement, to 50 percent
of the cost for clerical and 25 percent for production
personnel. At least one agreement, instead of
specifying medical and hospital benefits in detail,
stipulates that the employer shall meet all “ relevant
expenses.” Dental expenses are generally outside the
purview of collective agreements. A few employers
provide free lunches to their employees.
Apart from the health and sanitation requirements
enforced by government officials, and Sabah's
Public Health Ordinance of 1960 (covering all public
health ), no laws in Sabah or Sarawak deal exclusively
with health and sanitation in places of employment.
Under the provisions of section 4(3) of Sarawak's
Labour Ordinance of 1952 and section 4 (4) of
Sabah's Labour Ordinance of 1948, as amended , the
respective Commissioner for Labour or the health
officer may require employers to take certain steps
toward remedying defects observed in " plant,
layout, working methods, supervision, medical or
sanitary provision or other matters at any place of
employment which he may have reasonable cause to
believe constitute a threat to the health or safety of
the workers.”
In Sarawak, according to the Commissioner for
Labour, some of the outstanding deficiencies in
many factories are inadequate or nonexistent
sanitation, and inadequate ventilation and lighting
facilities. Some employers in Sarawak, and also in
Sabah , provide free medical examinations, medical
attention, and up to 28 days' hospitalization or a
maximum of M $ 500 for that purpose. ( These
conditions are included in several collective bar
gaining agreements in Sarawak and Sabah .)
Neither the laws nor the various government
agencies concerned with labor require foreign
employers to maintain higher standards than local
employers. Some of the best health and sanitation
facilities in employment areas, however, are found in
foreign -owned enterprises.
Safety Conditions and Required Precautions
Peninsular Malaysia's Machinery Ordinance of
1953, as amended, with the pertinent regulations,
establishes the statutory provisions on safety of
workers in industries employing mechanical power.
The Machinery Ordinance and its pertinent regula
tions confer wide powers on government inspectors
of machinery to order safety devices installed and
maintained, and to ensure by periodic inspections
that this is done. There are provisions on floors,
stairways, ladders, and means of access; ventilation
and overcrowding; exposure to the elements; fire
precautions; volatile flammable substances; danger
ous liquids; confined spaces, fumes and dust ;
protective clothing; prohibition of meals in certain
places ; water valves; pressure valves; compressors;
and steam pipe connections. Similar safeguards
exist under the mining laws 54 and rules, which aim
at eliminating such accidents as landslides, explo
sions, etc.
Despite the detailed statutory provisions on
safety, Malaysian Government labor officials have
indicated that there is a general lack of safety
consciousness among peninsular Malaysian em
ployers and employees and workers alike . More
over , government labor officials reported that many
employers are still not " fully conversant” with the
requirements of the Machinery Ordinance of 1953
even though the law has been in force since that
time .
Singapore's Factories Ordinance of 1958 governs
health and safety in Singapore factories. Safety
devices for machinery are required in factories
employing 10 or more people and using power, or
other potentially dangerous, equipment. It specifies
certain other safety precautions, but empowers
54 The mining laws include: The Mining Enactments; the Mineral Ores
Enactments; the Chinese Tin Mines (Rehabilitation Loans) Ordinance;
the Tin Control Ordinance of 1954; the Tin Control Regulations of 1955;
the Tin Control (Buffer Stock) Regulations of 1956; and various substate
legislation related to mining.
77
 inspectors generally to exercise their judgment.
These precautions require that moving parts of
machinery must be securely guarded, as must vessels
containing harmful liquid , and potentially danger
ous devices or parts of machinery must be enclosed .
Efficient starting and stopping devices are manda
tory. All lifting devices must be examined period
ically by government -recognized (registered) inspec
tors; overhead traveling cranes must not approach
within 20 feet of places where persons are
working; openings in the floor must be fenced ;
stairs must have guard rails. If dangerous fumes
might be present, adequate exits must be provided,
testing must be done , suitable breathing apparatus
worn , and employees trained in artificial respiration.
Steam boilers in Singapore must have safety
valves and gages; steam receivers must have auto
matic devices to ensure safe working pressure, and
valves and gages must be examined every 24 months.
Other detailed requirements are specified for valves,
gages, and compressors, to ensure safe pressure
levels. All gas installations, including the connect
ing pipes, must be of sound construction and properly
maintained if the gas is combustible.
Singapore's factories must have readily accessible,
adequate and suitable fire extinguishers. The
Factories Ordinance also requires fire escapes, open
passageways, doors opening outward , plainly marked
fire exits, and training of employees and workers in
fire routines.
Sarawak and Sabah do not yet have any compre
hensive legislation dealing exclusively with safety
in work areas. Sarawak's Labour Ordinance of
1952 (sec. 4 (3) ) and Sabah's Labour Ordinance of
1948 (sec. 4 (4) ) require employers to take steps
considered necessary to remedy defects observed
(by inspectors) in plant, layout, working methods ,
supervision, medical or sanitary provisions, or
other areas at any place of employment, if the Com
missioner for Labour has reasonable cause. to believe
there is a threat to the health or safety of the
workers.
In addition to the general provision on safety in
the Labour Ordinance, Sabah has a Machinery
Ordinance (1920) which contains provisions on
worker safety. The rules under the Machinery
Ordinance provide for the inspection of power
driven machinery and registration of operators, to
ensure that adequate safety standards are main
tained . The Machinery Ordinance, according to
government labor officials, is “ very much out of
date.”
78
Sabah's Commissioner for Labour and Welfare is
Chief Inspector of Machinery. His powers under
the Machinery Ordinance are exercised through the
inspection officers of the Department of Labour and
Welfare, with occasional help from " experts ”
called in from other government departments. All
inspection officers are given departmental instruc
tion on safety in the operation of the types of
machinery most commonly encountered in the
course of their inspection visits.
According to government labor officials and union
leaders, many employers in Sarawak and Sabah
take inadequate safety precautions or none at all,
largely because there is no adequate legal obligation
for them to employ safety measures. Some, how
ever, provide excellent safety measures and maintain
high safety standards, but such employers are in the
minority.
Although neither the labor laws nor the various
government labor agencies in Malaysia require
foreign employers to maintain higher standards,
they are in fact pacesetters in safety standards.
Accident and Disease Compensation
Workmen's compensation laws are in force in all
four parts of Malaysia. Peninsular Malaysia's
Workmen's Compensation Ordinance of 1952 , as
amended , Singapore's Workmen's Compensation
Ordinance of 1955 , as amended, Sarawak's Work
men's Compensation Ordinance of 1957, as amended,
and Sabah's Workmen's Compensation Ordinance
of 1955, as amended, are similar to the workmen's
compensation laws in the United States. All apply
to personal injury by accident arising out of and in
the course of employment, and fix employer liability.
However, they do not cover casual workers, domestic
servants, nonmanual workers whose earnings exceed
M$400 per month (M$500 per month in Sarawak ),
outworkers ( persons to whom articles or materials
are given for processing off the premises), police
officers, any member of the family of the employer
who dwells with him in his home, and tributers
(persons who work on shares).
The heads of the various labor ministries or labor
departments may require that employers be insured
by an approved insurer, and many employers
throughout Malaysia are. Employers may, instead
of insuring their liability for workmen's compensa
tion, deposit such sums of money with the govern
ment labor agency, or furnish such other security,
as may be approved by the government; the deposit
or other security is to be used by the government to
pay compensation to the depositors' employees as
necessary
The maximum payment for death under the pro
visions of the Workmen's Compensation Ordinances
of peninsular Malaysia, Singapore, Sarawak , and
Sabah, is M$7,200 by lump-sum payment. For
permanent total disability , the maximum payment
is M$9,600 depending on the age of the employed
person ;55 an additional 25 percent of the amount
payable to a person with permanent total disability
may be claimed when the disabled person must have
the constant help of another person , if this is
certified by a doctor.
The Workmen's Compensation Ordinances of
peninsular Malaysia , Singapore, Sarawak, and Sabah
contain provisions for permanent partial disability.
The sum payable is equal to the percentage (as
assessed by a physician) of the compensation payable
in the case of permanent total disability which is
proportionate to the permanent loss of earning
capacity caused by the injury .56 The types of
injury and the minimum percentage of loss of earning
capacity are as follows:
Minimum percentage
of loss of earning
Injury capacity
Loss of an arm above or at the elbow ... 70
Loss of an arm below the elbow .. 60
Loss of a leg above or at the knee ... 60
Loss of a leg below the knee ....
Permanent total loss of hearing ---
50
50
Permanent total loss of hearing in one ear. 20
Loss of sight of one eye ... 30
Loss of thumb ... 25
Loss of one joint of thumb.- 10
Loss of index finger---- 10
5
Loss of any finger other than index finger .
Loss of great toe----- 10
Loss of all toes of one foot --- 20
NOTE : Complete and permanent loss of the use of any listed limb or
member is deemed equivalent at least to the loss of that limb or member.
Where temporary disability, whether total or partial,
results from an injury, the employer is required to
pay the injured person M $65 or an amount equal
to one-third of his monthly earnings, whichever is
less, on every 15th day after the injury for the
entire period of disablement, or for 5 years, which
ever is shorter. Employers are also required to pay
compensation for occupation-connected diseases con
tracted by their employees or workers; the amount of
55 Where the employed person is 18 years old or more, he is entitled to a
lump sum equal to 48 months' earnings or M $ 9,600, whichever is less; if
he is 16 but not over 18 years, he is entitled to a lump sum equal to 72
months' earnings or M $ 9,600, whichever is less. If the employed person is
under 16, he is entitled to a lump sum equal to 96 months' earnings or
M $ 9,600, whichever is less .
56 Earnings include, in addition to actual money earnings, any privilege
or benefit whose value can be estimated in money, except travel allowances
and contributions by the employer to any pension or provident fund.
compensation depends on whether the disease
causes death or disability.
The employed person must notify his employer
within 7 days after an accident has occured and must
file for compensation within 6 months from the date
of the accident ; the statutes provide that failure to
meet these deadlines is not a bar to claims if reason
able cause for failure exists. The employer must
notify the Commissioner for Labour within 10 days
after the accident. The statutes make the employer
liable for injuries sustained by workers of independ
ent contractors but require that he be indemnified
by such contractors. The employer must file returns
in the Ministry or Department of Labour showing
compensation paid.
The Commissioner for Labour in peninsular
Malaysia, Singapore, Sarawak , or Sabah may con
duct an inquiry if any question arises under the
provisions of the Workmen's Compensation Ordi
nance of the area concerned . In the event it cannot
be settled at this level, it shall be decided (except in
Sabah) by an arbitrator - usually the President of
the Sessions Court in Peninsular Malaysia, the
Official Assignee and Public Trustee in Singapore,
and the Commissioner for Labour in Sarawak. The
arbitrator's decision is not appealable unless a judge
certifies that it involves a question of law which it is
desirable in the public interest to have determined by
the High Court. A workmen's compensation case
thus brought to the High Court is appealable to the
Court of Appeal. In Sabah, questions arising under
the Workmen's Compensation Ordinance are decided
by the High Court ; a decision of the High Court
certified by a judge as involving a question of law
may be submitted to the Court of Appeal.
Peninsular Malaysia had 14,213 industrial acci
dents in 1961. Of these, 13,164 resulted in temporary
disability, 767 in permanent partial disability, and 10
in permanent total disability ; 272 were fatal. For
the first 8 months of 1964, Singapore accidents
reached 5,118, of which 59 were fatal, 296 resulted in
permanent disability, and 4,763 caused temporary
disability. From September 1962 through December
1963, Sarawak had a total of 441 industrial accidents,
of which 14 were fatal, 59 resulted in permanent, and
368 in temporary , incapacity. Sabah had a total of
854 reported accidents in 1961 (810 in 1962) , of
which approximately 37 were fatal (58 in 1962) .
In 1961 , most accidents in peninsular Malaysia
were on the rubber estates (6,201 ) , in the construc
tion industry ( 1,348) , in the water transport industry
(897) , on the oil palm estates (715) , and in the
79
1
sawmill industry (698) . Over 50 percent of the
accidents in Sarawak and Sabah occurred in the
logging and sawmilling industry in 1962 and 1963.
According to government labor officials, the accident
rate in logging and sawmilling is aggravated by the
fact that much of the felling of trees is done by
inexperienced workers under inexperienced super
Chapter XIV . Social Insurance
Government Systems of Insurance
Malaysia does not yet have an overall social
security program. In peninsular Malaysia, apart
from a pension program for government employees
and some privately operated programs for employed
personnel, the main social security measures are an
employees' provident fund (intended principally as a
program for compulsory savings) and workmen's
compensation . In addition , maternity benefits are
provided under the Employment Ordinance of 1955,
and health benefits stipulated under the provisions
of the Labour Code for workers in mines and
quarries, and on rubber estates.
The Employees' Provident Fund Ordinance was
introduced in 1951. Its chief objective is to afford
protection against loss of earnings because of old
age ; it also affords some benefits in cases of invalidity
and death. As of May 1964, there were 27,243
employers and 1,404,629 employees registered in
the Fund .
The Fund is controlled by the tripartite 18 -mem
ber Employees' Provident Fund Board appointed
for 3-year terms by the Minister for Finance . It
is a statutory corporation with full power to control
its internal administration .
In general, persons in peninsular Malaysia over
16 whose remuneration does not exceed M$500 per
month must become contributors to the Fund at a
specified rate (roughly 10 percent of the employee's
wages—5 percent is paid by the employer and 5
percent is deducted from the wage or salary of the
employed person ). Maritime fishermen are ex
cluded. If a worker's remuneration is increased and
exceeds M $ 500 a month, after he has become a
member, he may continue his membership . The
rate of contribution to the Fund by employee and
employer is specified in the Ordinance. For example,
if the employee's remuneration is M$70 a month,
employer and employee each contribute M $4.50;
if M$ 130 a month, M$7 ; if M $ 240 a month, M$ 13
and for M $ 380 a month and above, each contributes
80
visors. Moreover, they declare, the prevailing
system of payment by piece rates (in those indus
tries) “ means that safety measures are apt to be
sacrificed to greater output.” In proportion to the
number of workers employed, the accident rate in
Sabah is generally lower in large firms, which have
higher standards of care and supervision .
M$20. Contributions by both employer and
employee are credited to the latter's account, and
at the end of the accounting year each account is
credited with interest at the rate prevailing in the
preceding year. A minimum interest rate of 212
percent is guaranteed by the National Government.
The accumulated contributions plus interest can
be withdrawn only when the Employees' Provident
Fund Board has established that the employee has
died, has reached the age of 55, is medically in
capacitated for employment, or is about to leave the
country with no intention of returning. The
employee may then withdraw the sum of his own
and his employer's contributions. The only circum
stance (apart from an overpayment) in which the
employer can secure any part of the sum due the
employee is if the latter has been found guilty of
criminal breach of trust (i.e. ,theft, misappropria
tion, or embezzlement of his employer's property );
in such a case, a court order is necessary before the
Board can pay any money in the account to the
employer.
The Commissioner for Labour and his officers
exercise the powers of “ inspectors ” for enforcing
the Employees' Provident Fund Ordinance of
peninsular Malaysia. They may investigate places
of employment to ensure compliance. Penalties are
provided for noncompliance.
Employers in peninsular Malaysia who have
privately established provident funds or pension
programs providing higher benefits than those of
the Employees' Provident Fund may apply to the
Employees' Provident Fund Board for declaration
of such funds or programs as " approved funds. '
Employers who have established “ approved funds”
are exempt from paying contributions to the Em
ployees' Provident Fund so long as they pay to the
approved fund . The Employees' Provident Fund
Ordinance makes provision for the transfer of con
tributions, plus interest, between the various provi
dent fund or retirement plans or the Employees'
Provident Fund itself when an employee changes his
employment (there are formalities and safeguards
before such transfer can be made). The majority
of Federal and substate government employees in
peninsular Malaysia do not contribute to the
Employees' Provident Fund ; they are covered by
peninsular Malaysia's Pensions Ordinance of 1951 ,
as amended .
The South Indian Labour Fund Ordinance,
enacted in 1958, established a fund in peninsular
Malaysia for the following purposes : ( 1) Repatriation
and assistance for South Indian 57 workers and their
dependents or orphans eligible for such repatriation ;
(2) maintenance of aged or " decrepit” South
Indian workers and their dependents or orphans;
(3) acquisition, construction, maintenance, and
liquidation of housing areas for South Indian workers
either in peninsular Malaysia or elsewhere (India) ;
(4) help for South Indian workers in need of assist
ance ; and (5) any other purpose for the benefit of
South Indian workers, which may from time to
time be authorized by the South Indian Labour
Fund Board, after consultation with and approval
of the Minister for Labour.
The South Indian Labour Fund Board, chair
maned by the Commissioner for Labour, is a
statutory body comprising 13 representative and 13
alternate members whose terms of office are for 3
years. The 13 representatives are : ( 1) 7 persons
nominated by associations representing employers
in the planting industry; (2) 2 persons nominated
by the Minister for Labour representing the Indian
community; (3) 2 persons nominated by the Minister
for Labour representing the Indian workers; and
(4) 2 persons nominated by the Minister for Labour
representing the government.
The Fund's resources consist largely of dividends
on monies invested in local and foreign stocks.
As of December 1963 , a total of 22,765 58 South
Indians, including 16,851 adults and 5,914 minors,
had been repatriated.
In Singapore, the Central Provident Fund
( established by the Central Provident Fund Ordi
nance of 1955) constitutes the only statutory form of
old age insurance. As of 1961 , there were 325,000
employees or workers participating in the fund .
57 South Indian means any person whose mother tongue is, or the mother
tongue of either of whose parents was, Tamil, Telegu, Malayalam , Kanarese,
or Oriya; and who was born in or is descended from persons who were born
in South India.
58 The total represents repatriation from 1948 to December 1963. Ap
proximately 25 percent of the total have been repatriated since 1958 .
Singapore's Central Provident Fund is in fact a
form of compulsory savings. All employers are
required to pay a monthly contribution for each
employee or worker; they may not contract with
their employees or workers not to do so . Employer
and employee or worker each contributes an amount
equal to 5 percent of the wage 59 or salary, except
when the employed person's wage is less than
M $ 200 per month, in which case the worker does
not contribute (table 24) .
TABLE 24. SINGAPORE : EMPLOYER AND EMPLOYEE
CONTRIBUTIONS TO THE CENTRAL PROVIDENT FUND
Monthly rate of contributions
Monthly wage as percent of wage
(in Malaysian dollars 1)
Employer Employee
M$10 to M$ 199 . 5 percent of wage.
M $ 200 to M $ 499. 5 percent 2 of wage . 5 percent 2 of wage.
M $ 500 and over- M $ 25 .- M $ 25
1 One Malaysian dollar = US $0.33.
2 Employees who earn between M $200 and M $ 210.50 per month do not
contribute 5 percent but only the amount by which their wages exceed
M $ 200 per month, e.g., an employee earning M $ 205 pays onlyM $ 5per
month as his share of the contribution. His employer, however, con
tributes a sum equal to 5 percent of the employee's wage (M$10.25) , so that
the total contribution payable in such a case is M $ 15.25 per month .
An employee who has reached the age of 55 may
apply for the withdrawal of his money from the
fund. A person under 55 may apply for withdrawal
from the fund under circumstances generally
similar to those applying to withdrawals from penin
sular Malaysia's Employees' Provident Fund . If a
member dies before he has withdrawn his money
from the fund , the beneficiaries he has nominated
will receive it. Interest at not less than 212 percent
is credited annually to each member's account.
Singapore's Central Provident Fund is adminis
tered by a Central Provident Fund Board consisting
of a chairman and six other persons, including two
members representing the Singapore Government,
two members representing employers, and two
members representing employees or workers; all
members are appointed for 3 -year terms by the
chief executive of Singapore.
Singapore's Central Provident Fund is more
liberal than peninsular Malaysia's Employees'
Provident Fund, including, for example, the fact
that on wages or salary of less than M$200 the em
ployer pays the entire contribution .
Singapore wage and salary earners are subject to
workmen's compensation and to lump- sum payments
59 For Central Provident Fund purposes, “ wages ” include basic pay ,
shift pay, piecework earnings, commission, allowances paid for food, rent,
or cost of living, and bonuses other than bonuses paid at the discretion of
the employer .
81
from the Central Provident Fund . Civil servants
have Widows' and Orphans' Pensions Ordinance
benefits. Singapore's Labour Ordinance contains
provisions on maternity benefits. The Singapore
Government has a free medical program which
extends to pregnancies.
Sarawak and Sabah have no social security
legislation for persons in private industry apart from
workmen's compensation laws and the provisions on
maternity benefits contained in the Labour Ordi
nances of both states, and in Sabah’s Public Health
Ordinance of 1960. This ordinance is a comprehen
sive modern code of law on all aspects of public
health .
In peninsular Malaysia and Singapore, Depart
ments of Social Welfare concentrate on care of
children and of the aged and disabled , training of
the physically handicapped, general welfare and
relief, support of voluntary organizations, and
development of youth activities. In Sabah and
Sarawak, Social Welfare Councils have been set up
to provide similar services and aid . The work of
voluntary social welfare bodies is also of significant
importance ; these are often supported partially by
government grants. Throughout Malaysia , free
medical treatment can be obtained by those who
need it .
Private Insurance and Retirement Systems
Many employers in Malaysia have their own
retirement systems which, in the case of peninsular
Malaysia and Singapore , are equal to or more liberal
than those provided by law. Retirement or pension
plans vary considerably; benefits usually are based
on length of service and in some instances on the
salary or wage at the time of retirement (usually at
age 55) . Retirement benefits are paid in a lump sum.
Many collective bargaining agreements throughout
Malaysia contain provisions on retirement; a few
examples from existing collective agreements in the
various parts of Malaysia provide some indication of
the extent of benefits.
In peninsular Malaysia, one agreement provides
for retirement benefits to all workers covered by it
who have worked on the estate for not less than 15
years, at the rate of M$25 for every completed year
of service. Another peninsular Malaysian collective
agreement provides benefits upon termination of
work , except for misconduct or breach of contract,
as follows:
82
Length of employment Benefit 1
6 months to 12 months.-- 100 percent of 1 month's salary.
1 year but less than 10 . An additional 55 percent of 1 month's
salary for each year after the first.
10 years but less than 16 .----- An additional 70 percent of 1 month's
salary for each year above 9.
16 years but less than 20 ------ An additional 90 percent of 1 month's
salary for each year above 15.
20 years and over An additional 100 percent of 1 month's
salary for each year above 19.
1 The maximum may not in any case exceed 18 months' salary.
The same agreement also stipulates that where an
employed person, through no negligence or miscon
duct on his part, becomes physically unfit to perform
his job satisfactorily, and such physical disability is
certified by a company -approved medical practi
tioner, the company may consider (but is not re
quired to) a medical termination which would pro
vide the following benefits:
Length of employment Benefit 1
6 months to 12 months...- 100 percent of 1 month's salary.
1 year but less than 10 .------- An additional 65 percent of 1 month's
salary for each year after the first.
10 years but less than 16 .----- An additional 80 percent of 1 month's
salary for each year above 9 .
16 years and over ... An additional 100 perecnt of 1 month's
salary for each year above 15.
1 The maximum may not exceed 18 months' salary.
Still other peninsular Malaysian agreements specify
only that a retirement benefit will be paid, the
amount to be decided by peninsular Malaysia's
Industrial Court in accordance with the provisions
of the Industrial Courts Ordinance, and any award of
the Court to be binding on both parties.
Some labor unions in peninsular Malaysia have
also established benevolent funds to provide finan
cial assistance to members and their dependents in
the event of retirement, including resignation, or
on the death of any member. Generally, members
make a fixed monthly contribution to the fund , and
benefits are payable after membership of at least
2 years . The amount of benefit varies with the
length of membership in the fund, and is made up
of the amount credited to the member's account
from his monthly contributions together with an
additional contribution from all members of the
fund ranging from 30 cents to M $3 per member.
Benefits from the benevolent funds may also include
educational scholarships and study grants for
members and their dependents.
In Singapore, a number of employers provide a
" gratuity benefit " in the event of retirement (at
age 55) , death, or termination of employment on
medical grounds. The benefits vary considerably
and are usually determined by length of service.
Generally, benefits are calculated as either 1 or 2
weeks' salary or wage per year of service, or a
percentage of the monthly salary or wage. The salary
or wage on which the benefits are calculated is
generally the last received.
Many of the collective bargaining agreements in
Singapore contain clauses on gratuity benefits.
Some are general, to the effect that the retirement or
gratuity benefit will be determined between employer
and union at the time an employee or worker retires.
Others stipulate the benefit provided in detail.
Still others provide a sliding scale of benefits, in
creasing with the number of years of employment.
An upper limit is generally fixed ; the maximum
amount, in at least one instance, reached 35 months'
salary. Usually, the agreements specify a minimum
employment period necessary for benefit eligibility .
Several agreements fix 5 to 7 years for medical
benefits and 5 years or more for death and retire
ment benefits.
One agreement in Singapore stipulates 3 weeks'
pay for each year of employment, based on the last
salary received . Still another agreement provides
benefits for retirement, death, or medical retirement
ranging from 112 months' salary after less than 5
years of employment to 5 months' salary after 20
years. Retirement benefits in Singapore are paid in
a lump sum. By mutual agreement, employees or
workers may be employed beyond the 55 -year age
limit, up to age 60. Some unions in Singapore also
have credit and mutual benefit funds which pay
small sickness, death, or unemployment benefits.
A few employers in Sarawak and Sabah have
established provident funds for their regular
employees or workers. The benefits vary consider
ably, generally based on length of employment.
Retirement age is 55 and can be extended to age
60 by mutual agreement. Some employers also pay
benefits for retirement for medical reasons and for
death . Benefit payments are usually in a lump sum.
A few collective bargaining agreements in Sarawak
and Sabah contain clauses on retirement benefits
after a minimum of 5 years' service. The retirement
benefit is calculated on the basis of 10 percent of
the total basic salary or wage (excluding overtime,
bonus, commissions, and allowances) earned at the
date of retirement.
At least one collective agreement in Sabah pro
vides for the following employer and employee
contributions to the “ local staff provident fund ” :
Contributions (percent)
Length of employment
( continuous) Company Employee
Un er 11 years . 10
11-20 years-
1212
15
21 years and over .
Contributions to this " local staff fund ” are cal
culated on the basic wage or salary only, exclusive
of commission , overtime, and other allowances.
Benefits are payable on retirement after 5 years'
service. The agreement also specifies a retirement
benefit because of ill health after 5 years' service,
amounting to 25 percent of the last month's salary
for each year of service.
Government employees 60 throughout Malaysia
receive retirement pensions under noncontributory
pension plans. Retirement is compulsory for both
men and women at age 60, according to the provi
sions of the Pensions Ordinance of 1951 as amended.
Men may retire at age 55 on application. Retire
ment of women may be required at age 45 ; they may
also apply to retire at that age. Earlier retirement
is provided under the following circumstances : ( 1)
On medical grounds; (2) on reaching age 45 in the
case of police officers below the rank of assistant
superintendent of police and prison officers below
the rank of superintendent; and (3) in the case of
women officials, on marriage. The rate of govern
ment pension depends on the length of qualifying
employment and the amount of pay. Up to 25
percent of the pension may be committed for a
lump sum.
Officials holding nonpensionable posts in the
government service receive a lump -sum payment,
subject to a qualifying employment period of 10
years. In Sarawak, the payment amounts to 1
month's pay for each year of service. Some non
pensionable employees in peninsular Malaysia are
required to become members of the Employees'
Provident Fund on the same terms as nongovern
ment employees in the Fund. Protection against
injury or occupational disease is also available to all
government employees and their survivors in the
event of death or permanent disability. Govern
ment employees are entitled to medical leave with
full pay up to 90 days per year, with extensions up
to an additional 90 days for such diseases as tuber
culosis and leprosy . There is also a compulsory
contributory Widows' and Orphans' Pensions
Scheme for those pensionable employees who are
monogamous. Medical treatment is available for
all government officials and their families free of
charge, but prescribed charges are made for treat
ment in government hospitals.
60 Federal and State officers in those positions declared by the government
to be pensionable positions, which include permanent government per
5 sonnel. The remaining government personnel, such as persons serving in
temporary positions, daily rated personnel, and certain clerical personnel in
712
various government departments, are in nonpensionable positions, and do
10 not come under the provisions of the Pension Ordinance.
83
 The government retirement plan for pensionable ment income on a monthly basis instead of a lump
personnel is generally considered more liberal than sum payment. Moreover, many employees and
most private plans ; the benefits are generally greater, workers in private industry are not protected by
and the employee is assured of a continuing retire any pension plan .

84
 Appendix A. Principal labor laws of Malaysia, 1964
I. Peninsular Malaysia
The Rump Labour Code (Chapter 154 of the Laws of the
Federated Malay States) , April 25, '1933.
Wages Councils Ordinance, 1947.
Wages Regulation (Shop Assistants) Order, 1963.
The Children and Young Persons Ordinance, 1947.
( Administered and enforced partly by the Ministry of
Labour and partly by the Department of Social Welfare .)
Industrial Courts Ordinance, 1948.
Industrial Court and Courts of Inquiry Rules ( these rules
are identical with the Industrial Court and Courts of
Inquiry Rules, 1941, which were established under the
repealed Industrial Courts Enactment, 1940) .
Trade Disputes Ordinance, 1949.
Trade Disputes (Notice) Regulations, 1951 .
Trade Disputes (Amendment) Ordinance, 1956 .
Arbitration Ordinance, 1950.
Weekly Holidays Ordinance, 1950.
Weekly Holidays Rules, 1951 .
Weekly Holidays (Amendment) Ordinance, 1957.
Weekly Holidays (Amendment) Act, 1961.
Weekly Holidays (Amendment) Rules, 1961 .
Pensions Ordinance, 1951 (Government)
Pensions Regulations, 1957 (Government)
Pensions (Special Provisions) Ordinance, 1955 (Government)
Pensions Regulations, 1957 (Government)
Pensions (Amendment) Regulations, 1957 (Government)
Pensions (Special Provisions) (Amendment) Ordinance,
1957 (Government)
Pensions (Amendment) Regulations, 1958 (Government)
Pensions (Temporary Provisions) Ordinance 1958 (Govern
ment)
Pensions (Public Authorities Act) , 1962 (Government)
Employees' Provident Fund Ordinance, 1951 .
Employees' Provident Fund Regulations, 1952.
Employees' Provident Fund Rules, 1952.
Employees' Provident Fund (Amendment) (No.2) Act, 1960.
Employees' Provident Fund (Amendment) Rules, 1962 .
Employees' Provident Fund (Amendment) Regulations,
1963.
Employees' Provident Fund (Amendment) Rules, 1963.
Employees' Provident Fund First Schedule (Amendment)
Order, 1963.
Employees' Provident Fund (Amendment) Act, 1963.
Employees' Provident Fund ( First Schedule Amendment)
Order, 1964.
Employees' Provident Fund (Amendment) October 1964.
Workmen's Compensation Ordinance, 1952.
Workmen's Compensation Regulations, 1953 .
Workmen's Compensation (Amendment) Ordinance, 1956.
Change in the principal labor laws are shown in appendix J.
Workmen's Compensation (Amendment) Act, 1960.
Workmen's Compensation ( Amendment) Regulations, 1961.
Machinery Ordinance, 1953.
Machinery (Safety, Health, and Welfare) Regulations, 1956.
Machinery (Administration ) Regulations, 1957.
Machinery (Steam Boiler and Unfired Pressure Vessel)
Regulations, 1957.
Machinery (Amendment) Ordinance, 1959.
Machinery ( Administration ) (Amendment ) Regulations,
1962.
Employment Information Ordinance, 1953.
Employment Ordinance, 1955.
Employment (Amendment) Ordinance, 1956.
Employment Regulations, 1957.
Employment (Procedure- Reciprocal Provisions) Regula
tions, 1957.
Employment (Employment of Women ) (Female Con
ductors) Regulations, 1958.
Employment (Amendment) Act, 1961 .
South Indian Labour Fund Ordinance, 1958.
Trade Unions Ordinance, 1959.
Trade Unions Regulations, 1959.
II. Singapore
Trade Unions Ordinance, 1941 .
Trade Unions (Amendment) Ordinance, 1959.
Trade Unions (Amendment) Ordinance, 1963.
Trade Disputes Ordinance, 1941 .
Trade Disputes (Amendment) Ordinance, 1960 .
Arbitration Ordinance, 1953.
Workmen's Compensation Ordinance, 1955 .
Workmen's Compensation (Amendment) Ordinance, 1957.
(Effective from April 1955.)
Central Provident Fund Ordinance, 1955.
Central ProvidentFund (Amendment No.2) Ordinance, 1955.
Central Provident Fund (Amendment) Ordinance, 1957.
Central Provident Fund (Amendment) Ordinance, 1963.
Central Provident Fund Rules, 1964.
Criminal Law ( Temporary Provisions ), 1955.
Labour Ordinance, 1955.
Labour (Amendment) Ordinance, 1957.
Clerks' Employment Ordinance, 1957.
Shop Assistants' Employment Ordinance, 1957.
Seamen's Registration Board Ordinance, 1957.
Employment Agency Ordinance, 1958.
Factories Ordinance, 1958.
Factories (Amendment) Ordinance, 1959.
Industrial Relations Ordinance, 1960.
Industrial Relations (Amendment) Ordinance, 1962.
Economic Defence Ordinance, 1963.
Economic Defence ( Direction of Employment) Ordinance,
1963.
85
 Appendix A. Principal labor laws of Malaysia, 1964 — Continued
III. Sarawak Gaming Ordinance, 1930 .
Trade Unions and Trade Disputes Ordinance, 1947.
Trade Unions Ordinance, 1948. Trade Unions Regulations, 1949.
Trade Unions Regulations, 1948. Trade Unions and Trade Disputes (Amendment) Ordinance,
Trade Unions (Application of Funds) Notification , 1961 . 1949 .
Trade Unions (Amendment) Ordinance, 1961 . Trade Unions and Trade Disputes (Amendment ) Ordinance,
Trade Unions (Amendment) Ordinance, 1962. 1960 .

Trade Disputes Ordinance, 1948 . Trade Unions and Trade Disputes (Amendment ) Ordinance ,
Labour Ordinance, 1952. 1963 .
Weekly Holidays Ordinance, 1956. Labour Ordinance, 1948.
Workmen's Compensation Ordinance, 1957. Labour (Amendment) Ordinance, 1955.
Workmen's Compensation (Amendment) Ordinance, 1960. Labour (Amendment) Ordinance, 1957.
Essential Services Arbitration Ordinance, 1958. Labour (Amendment) Ordinance, 1959.
Workmen's Compensation Ordinance, 1955.
IV. Sabah 2 Workmen's Compensation (Amendment) Ordinance, 1957.
Essential Services Arbitration Ordinance, 1959.
Machinery Ordinance, 1920.
Wages Councils Ordinance, 1960.
Merchant Shipping Ordinance, 1960 .
2 Peninsular Malaysia's Trade Unions Ordinance was extended to Sabah
and Sarawak in April and August 1965 , respectively . Public Health Ordinance, 1960.

86
 Appendix B. Mainland Malaysia: Federations of trade unions and
their affiliates, December 1963
1. Federation of Malay Teachers' Unions, Federation of Federation Broadcasting Staff Union .
Malaya. ( Kesatuan Persekutuan Guru2 1 Melayu, Perseku Public Works Department Storekeepers' Union, Federation
tuan Tanah Melayu - K.P.G.M ., P.T.M. ). of Malaya.
Affiliates: Kesatuan Pegawai2 Hutan Melayu Sa -Malaya.
Kesatuan Guru2 Melayu Perak . Kelantan Clerical Services Union.
Kesatuan Guru2 Melayu Perlis. Federation Armed Forces Civilian Staff Union .
Kesatuan Guru2 Melayu Kedah . Immigration Service Union, Federation of Malaya.
Malay Teachers' Union, Penang and Province Wellesley. Employment Exchange Staff Union.
Kesatuan Guru2 Melayu Johore. Dental Services Union, Federation of Malaya.
Malacca Malay Teachers' Union ( Kesatuan Guru2 Melayu Central Mental Hospital Employees' Union.
Melaka ) . National Union of Teachers, Federation of Malaya.
Kesatuan Guru2 Sekolah Kebangsaan Pahang. Malayan Veterinary Assistants' Union.
Malay Teachers' Union Kelantan ( Kesatuan Guru2 Melayu Kesatuan Pegawai2 Petempatan, Persekutuan Tanah
Kelantan ). Melayu ( Settlement Officers' Union, Federation of
Kesatuan Guru2 Melayu Trengganu . Malaya ) .
Kesatuan Guru2 Melayu Negri Sembilan . Persatuan Pegawai2 Petempatan , Johore
2. Federation of Government Junior Staff Unions, Federation ( Johore Settlement Officers' Association ).
of Malaya. The Government Medical Staff Union, Perak.
Affiliates: Government Marine Officers' Union, Federation of Malaya .
Government Junior Staff Union, Kedah / Perlis. Government Medical and Health Employees' National
Government Junior Staff Union, Penang and Province Trade Union ( 1939 ).
Wellesley. Union of Asian Field Officers, Department of Mines,
3. Congress of Unions of Employees in the Public and Civil Federation of Malaya.
Services ( CUEPACS ). State Civil Service Association, Federation of Malaya.
Affiliates : Pahang Medical Staff Union.
Union of Post Office Workers . Senior Officers' Association, Malayan Railway.
Labour Officers Union of the Federation of Malaya. Kesatuan Kebangsaan Pegawai2 Pentadbir Pelajaran,,
Malayan Film Unit Staff Association . Persekutuan Tanah Melayu .
Game Department Employees' Union . National Union of Hospital Assistants, Federation of
Malayan Nurses' Union. Malaya.
Malayan Technical Services Union . Road Transport Department Senior Officers' Association
Income Tax Officers' Union . ( 1960 ) .
Police Administrative and Clerical Services Union. The Union of Social Workers ( 1957).
Laboratory Assistants' Union. The Assistant Customs Officers' Association, Federation of
Customs Services Union, Federation of Malaya . Malaya.
Anti-Malarial Staff Union .
Kesatuan Pekerja2 Laut Kerajaan , Persekutuan Tanah
Government Printing Department Employees' Union . Melayu.
Federation X-Ray Staff Union .
Civil Aviation Air Traffic Control Services Union. Government Junior Staff Union, Kedah and Perlis.
Social Welfare Assistants' Union, Federation of Malaya . Union of Postal Uniformed Staff, Federation of Malaya.
Government Temporary Officers' Union, Federation of Kesatuan Pekerja2 Obatan dan Kesihatan , Negri Sembilan .
Malaya. Kesatuan Pekerja2 Perkhidmatan Bomba, Persekutuan Tanah
Town Council and Rural Board Overseers' Union , Federa Melayu .
tion of Malaya. National Union of Government Office Workers , Federation
Executive Officers' Union, Federation of Malaya. of Malaya .
Road Transport Examiners' Union . The Selangor Government Medical Services Union.
Government Junior Staff Union, Perak. Public Health Inspectors' Union, Federation of Malaya.
Chinese Affairs Officers' Union, Federation of Malaya . National Union of Telecoms Employees, Federation of
Malaya.
1 The plural of a word in the Malay language is indicated by the number The Government Bookkeepers' Union, Federation of
2 following the word. Malaya .

87
 Appendix B. Mainland Malaysia: Federations of trade unions and
their affiliates, December 1963—Continued
Affiliates — Continued
The Government Storekeepers' Union, Federation of
Malaya.
Kesatuan Kebangsaan Pekerja2 Gaji Hari Kerajaan ,
Persekutuan Tanah Al elayu .
Educational Institutions Division IV and Daily Rated
Employees Union, Federation of Malaya.
Union of Cooperative Inspectors, Federation of Malaya .
National Union of Government Dispensers.
88
Railwaymen's Union of Malaya.
Technical College Teaching Staff Association .
The Medical Services Union, Malacca .
Audit Officers' Union , Federation of Malaya .
Amalgamated Union of Employees in Government Clerical
and Allied Services.
SOURCE : States of Malaya , Annual Report of the Trade Unions Registry,
1963 ( Kuala Lumpur, 1964 ), pp. 41-43.
 Appendix C. Mainland Malaysian trade unions with
membership exceeding 2,000, December 1963
Name of union Membership

iiiiii
iiiii
National Union of Plantation Workers (NUPW) . 120,265
Railwaymen's Union of Malaya ----- 10,896
National Union of CommercialWorkers 9 , 297
War Department Civilian Staff Association .. 7,233

!!
National MiningWorkers' Union of Malaya. 4,985
The East Coast Mining Industry Workers' Union . 4,045
Government Medical and Health Employees' National Trade Union (1959). 3,878
Malayan Technical Services Union ... 3,763
National Union of Bank Employees 3,730
Kesatuan Kebangsaan Guru2 Sekolah Kebangsaan, Persekutuan Tanah Melayu . 3 , 196
National Union of Telecoms Employees. 3,054
Central Electricity Board Employees' Union -- 2,922
Harbour Trade Union , Port Swettenham. 2,622
Transport Workers' Union , Federation of Malaya .. 2,528
NationalUnion of Teachers, Federation of Malaya 1 2,478
Women Teachers ' Union , Federation of Malaya- 2,368
Government Workers' Union , Kedah / Perlis. 2,226
All Malayan Estates Staff Union ... 2,049
Public Works Department Employees' Union of Perak .. 2,022

1 Affiliated with the International Federation of Free Teachers' Union SOURCE : States of Malaya, Annual Report of the Trade Unions Registry,
(IFFT) . 1963 (Kuala Lumpur, 1964 ), 3.

89
 Appendix D. Singapore: Registered trade unions, September 1964
Union Affiliation 1 Estimated
membership

Singapore Harbour Board Staff Association ... NTUC ... 5,700

Singapore Transport Vessels Workers' Association .. (2) -- 1,400
Malay Seamen's Union of Singapore .. NTUC .. 160
Singapore Chinese Lady - Dress Makers Employees' Association . Independent. 60
Singapore Hairdressers ' Union .. (2) 750
The Confederation of Singapore Engineering Tradesmen .. ( 3) 600
Singapore Teachers ' Union NTUC . 4,100
Singapore Cigar Workers' Union.. Independent. 70
The Naval Base Labour Union . NTUC.. 10,000
Singapore Gold and Silver Smith Union . ( 2) . 300
Singapore General Printing Workers' Union .. NTUC (3)
Singapore Godown Labourers' Union ..... NTUC 290
Singapore Stevedores' Union . NTUC 1,000
Public Daily Rated Butchers Workers' Union . NTUC . 60
Singapore Interpreters' Union ... Independent. 80
Singapore Tailors' Union .. (2) 600
Singapore Hing Suah Porters ' Union .. ( 2) - 250

iiiii
Public Daily Rated Sewerage Workers' Union. NTUC 950

iiiiii
Public Daily Rated Cleansing Workers' Union . NTUC . 2,310
Public Daily Rated Nightsoil Employees' Union NTUC 600
The Singapore Printing Employees' Union ... NTUC 650
Rattan Workmen's Benevolent Union .. NTUC . 200
AmalgamatedMalayan Pineapple Workers' Union . (2) . 400
Singapore Coffee Shop Employees' Union .. (2) 300
Singapore Traction Company Employees' Union . NTUC.. 3,300
80
Singapore Undertakers’ Service Association ... Independent.
Independent 160
Singapore Chinese Newspaper Distributors' Association .
Singapore Rubber Commission Import and Export Labour Union .. NTUC ... (5)
Air Ministry Local Staff Union ... Independent . 4,500
Public Daily Rated Water Workers' Union . NTUC . 1,450
Public Daily Rated Health Workers' Union . NTUC . 1,265
iiiiii

Singapore Admiralty Local Staff Union .. NTUC . 530

Aiiii
Public Daily Rated Road Workers' Union . NTUC . 1,360
Chinese Tailors' Union .-- Independent . 750
iiii

The Singapore Government Administrative and Clerical Services Union . Independent. 1,700
Singapore Rattan Workers' Union .. (2) . 180
ii
10ii

Public Daily Rated Electrical Workers' Union . 2,500

I

NTUC ..
10,000

ii
Army Civil Services Union .-- Independent; PSI .
Public Daily Rated Transport Workers' Union .. NTUC .. 820
Singapore Medical Workers' Union .. NTUC .. 1,000
Malayan Gold and Silver Workers' Union, Singapore Branch . Independent 320
Singapore Malay Teachers' Union ... Independent. 440
Singapore Dance Hostesses' Association . Independent . 300
Public Daily Rated Architectural Workers' Union.. NTUC .... 800
Singapore Merchant Navy Officers' Association . Independent 100
The Musicians' Union of Singapore .. NTUC .. 225
Singapore Tong Loke Shoemakers' Union .. ( 2) 250
The Singapore Tamil Teachers' Union ... NTUC 100
250
Singapore Granite Quarry Workers' Union. ( 2) ---
iiii

Malaysian Ship Officers' Union ... Independent . 500

ii
ii

Singapore Sawmill Workers' Union . ( 2) 1,100

2,200
i

The Singapore Taxi Drivers' Union . (2)

600
Singapore Shoe Employees' Union .. (2)
Public Daily Rated Gas Workers' Union ... NTUC 260
NTUC . 960
Public Daily Rated Housing and Development Board Workers ' Union. 90
The Singapore Government SecretarialStaff Association ... Independent.
440
The Chinese Middle Schools Teachers' Union of Singapore . Independent .
The Union of Chinese School Teachers, Singapore .- NTUC .. 3,000
Malavan Teochew Theatrical Trade Union .. NTUC . 170
The Singapore Bank Employees' Union .-- . NTUC . 3,150
Public Daily Rated General Store Workers' Union . NTUC. 850
Singapore Government Technical Services Union .. Independent . 1,000
520
The Singapore Electrical and Wireless Employees' Union . (2)
1,400
Singapore Wood Workers' Union --- (2)
Singapore Vessel Workers' Union .. (2) (3)
iiiiiii

Singapore Fish Merchants' Employees' Union . (2) 310

440
Singapore Cycle and Motor Workers' Union. (2)
2,600
The IndustrialWorkers' Union of Singapore . (2)
750
Mansfield Local Employees' Union .. NTUC .
950
The Singapore Bookshops Publication and Printing Press Workers' Union ..
!!!!!!

( 2)
The Singapore Motor Workshops Employees' Union ... (2) 2,200
220
Singapore Europeans' Employees' Union ... (2)
3,700
Singapore Textiles and General Merchants' Emplovees ' Union . (2)
180
TheSingapore Pork -Butcher Shops and Abattoir Workers' Union. NTUC
NTUC 150
Islay Kerr Local Employees' Union .. 800
The Singapore Insurance Companies' Employees'Union . NTUC .
The Singapore Resturants, Bars , Eating and Coffee Shops Employees' Union . ( 2) . 1,020
The Singapore Cable and Wireless Staff Union ... NTUC ; PTTI 520
Reuters Local Employees' Union, Singapore . Independent . 80
60
Singapore Rattan Workers' Mutual Aid Union . (2)

See footnotes at end of appendix.

90
 Appendix D. Singapore: Registered trade unions, September 1964
-Continued
Union Affiliation 1 Estimated
membership

The Singapore Catering Services, Staff and Workers' Trade Union ... ( 2). 1,500
The Commissioner-General's Local Employees' Union ... NTUC . 250
Singapore Rubber Employees' Union .. ( 3) 1,500
Singapore Union ofBrewery , Bakery,Confectionery, Canning and Drinks Workers (2) . 90
Singapore Union of Workers of Boat- Building Industry 290
Singapore Metal Manufacturing Workers' Union ... (2) 50
Singapore Marine Products Workers' Union ... (2) . 1,100
Singapore Toddy Tappers' Union. NTUC. 75
Racecourse General Employees' Union . NTUC .
Singapore Firewood and CharcoalWorkers' Union . NTUC .
The Singapore Commercial House and Factory Employees' Union . 3,200
The Singapore Metal Box Workers' Union . ( 2) 350
Singapore Solicitors' Staff Association .. Independent . 250
Public Daily Rated Market and Hawkers Workers' Union . NTUC . 200
Ship Cleaning Workers' Union, Singapore (2) 410
Senior Officers' Association of the Public Services Independent . 90
The Singapore Manual and Mercantile Workers' Union. NTUC; IFCCTE . 20,000
Malayan Airways /Qantas Empire Airways Local Employees' Union . NTUC ; ITF 1,700
Singapore GovernmentMedical and Dental Officers' Association . Independent 230
The Malayan Airways- Pilots'Association of Singapore . Independent 100
The United Workers of Petroleum Industry NTUC ; IFPCW 2,800
Singapore National Union of Journalists. NTUC .. 110
Pioneer Industries Employees' Union ... NTUC . 300
The Singapore Bank Officers' Association . NTUC .. 50
The Amalgamated Union of Public Employees . NTUC ; PTTI; 30,000
and PSI

1 The abbreviations used are as follows: PSI—Public Services International.

NTUC — National Trades Union Congress.
IFCCTE - International Federation of Commercial , Clerical, and Tech
nical Employees.
ITF - International Transport Workers' Federation .
IFPCW - International Federation of Petroleum and Chemical Workers.
PTTI — Postal, Telegraph , and Telephone International.
2 Affiliated with the Singapore Association of Trade Unions which is not
registered by the Singapore Government.
3 Not available.
SOURCE: Ministry of Labour, Singapore, for list of unions. Affiliations
and membership data from official sources.

91
 Appendix E. Sarawak: Registered trade unions, October 1964
Union Membership

Total .. 14,068

Kuching Commercial Employees' Union 1 280

Kuching Municipal Employees' Union 219
Kuching Port Authority Staff Union -- 139
Sibu Commercial Houses Clerical Employees' Union 1 94
Senior Government Officers' Association of Sarawak . 283
Sarawak Government Asian Officers' Union .- 3,173
Sarawak Public Works Department Workers' Union.. 2 , 203
Sarawak Electricity Supply Corporation Employees' Union 70
Borneo Airways Employees' Union . 32
Kuching Bank Employees' Union ... 100
35
Sarawak Lands and Surveys Workers' Union .. 400
Sarawak Postal and Telecoms Employees' Union . 330
Kuching Water Board Employees' Union ... 780
Sarawak Shell Employees' Union .
Sibu Coffee Shop Employees' Union 2 66
Sibu Rejang River Stevedores' Union . 85
Sibu Carpentry Workers ' Union ? 96
Sibu All-Trade Employees' Union ? 1,661
Sarikei Hire Motor Vehicle Drivers' Union ? 55
Sibu Drivers' Union 2 60
Sarikei All- Trade Employees ' Union ? 94
Kuching Printing Workers ' Union 2 82

Piiii
Sarawak 1st Division Workers' and Labourers' Union 2 2,233
Sarawak 1st Division Building Workers' Union 2 301
234
Bus Employees' Union , 1st Division .-

)
3
(
Sarawak Wharf Labourers' Unions Federation 3
Sibu Wharf and Port Labourers' Union 2 323
Kuching Wharf and Port Labourers ' Union 2 370
Dalat Wharf Labourers' Union .... 17
Kapit Wharf Labourers' Union 18
12
Song Wharf Labourers' Union .. 16
Bintulu Wharf Labourers' Union .
Miri Wharf Labourers' Union ... 71
Binatang Wharf Labourers' Union . 31
Saribas Wharf Labourers' Union .. 12
11
Limbang Wharf Labourers' Union . 9
Baram Wharf Labourers' Union ..
Mukah Wharf Labourers' Union . 14
Sarikei Wharf Labourers' Union . 47
12
Saratok Wharf Labourers' Union ..

1 The Kuching Commercial Employees' Union and the Sibu Commercial
Houses Clerical Employees' Union have since merged to become the
Sarawak Commercial Employees'Union .
2 Communist or Communist influenced .
3 Not available.
Note : Sarawak trade unions have no international trade union affilia
tions.
SOURCE : Government of Sarawak, Department of Labour. Annual Re
port of the Department of Labor, Sept. 1962- December 1963 (Kuching Sarawak ,
1964 ).

92
 Appendix F. Sabah : Registered trade unions, October 1964
Union Membership 1

Total.-- 8,365

Tongkang Association of Sandakan .. 83

North Borneo Civil Service Union .. 1,898
Sabah Commercial Employees' Union .. 2,002
Sabah Teachers' Union ... 894
Sandakan District Rubber Estate Workers ' Union 75
Sandakan District Road Vehicle Drivers' Union .. 126
Jesselton District Shop Workers' Union . 368
Sandakan District Coffee Shop , Bar and Restaurant Union 120
Sandakan District Shop Assistant Union ... 150
Jesselton District Land Transport Workers' Union . 262
Borneo Airways Employees' Union .- 94
Tawau District Road Vehicle Drivers' Union . 330
Railway Workers' Union. 375
Jesselton Newspapers and Printers' Union.. 107
Tawau District Shop Workers' Union .. 122
Sandakan District Printing and Pressmen's Union .. 108
Sabah Public Works DepartmentWorkers' Union ... 135
Jesselton District Mechanical and Electrical Workers' Union . 40
Department of Agriculture Workers' Union , Tuaran ... 60
Jesselton District Coffee Shop, Bars and RestaurantEmployees' Union . 100
Sabah Posts and Telecoms Employees' Union -- 170
Sabah Government Native Teachers' Union ... 400
Jesselton Painters' Union ... 70
Sabah Timber Workers' Union . 124
Sabah Customs and Excise Employees' Union .. 152

1 Membership figures are for 1963. SOURCE : Department of Labour and Welfare, Jesselton, Sabah, October
1964 .

93
 Appendix G. Mainland Malaysia: Employers' organizations, August 1964
State Organization and address

Johore ... Johore Transport Employers' Association , 10 Jalan Tengku Azizah , Johore Bahru .
Malacca ------ South Malaya Printing Employers' Association, 31 Newcome Road, Malacca.
Penang Bakery Owners' Association, Penang and Province Wellesley , 114 Transfer Road , Penang .
The Lighter Owners' Association (1960) Penang , 6 Kampong Kolam , Penang.
The Stevedore Employers' Association, Penang and Province Wellesley, 11 Bishop Street, Penang.
Perak Firewood and Charcoal Trade Association, Taiping, 151 Market ( Second floor), Taiping.
Perak Printing Press Association, 89 Brewster Road (First floor), Ipoh.
Perak Timber Merchants' Association, 2 Jalan Che Tak , Ipoh .
The Malayan Mining Employers' Association , 1 Post Office Road, Ipoh.
Selangor... Central Malaya Printing Employers' Association , 149 Petaling Street, Kuala Lumpur.
Malayan Commercial Banks' Association , The Chartered Bank, Kuala Lumpur.
Selangor Timber Trade Employers' Association , 336A Lorong Haji Taib Satu , Off Batu Road, Kuala Lumpur.
The Malayan Planting Industries Employers' Association (Third floor), Mansion House, High Street,Kuala Lumpur.
The Selangor Shoe and Leather Goods Employers' Association, 62- D (Second floor) (Room 2) , Jalan Sultan , Kuala Lumpur .
The Federation of Malaya Employers' Consultative Association (MECA) is registered as a society. Malayan Bank Building, Jalan Bandar,
Kuala Lumpur.

Note : With the exception of the MECA , the employers' organizations SOURCE: States of Malaya Annual Report of the Trade Unions Registry,
in Malaya are registered as " trade unions." 1963 (Kuala Lumpur, 1964), pp. 27-39; and Ministry of Labour, Monthly
Report of the Ministry of Labour, August 1964 (Kuala Lumpur , 1964 ), p. 40

94
1
Appendix H. Singapore: Employers' organizations, August 1964
Organization and address
Singapore Hire Car Association,
25 , Beach Road, Singapore, 7.
The Singapore Sawmillers' Association,
341 - B , Beach Road , Singapore, 7.
Singapore Chinese Lady- Dress Makers Employers ' Association ,
53 - A , Bras Basah Road , Singapore, 7 .
Chinese Shoe Merchants' Association ,
5 , Malabar Street, Singapore, 7 .
Singapore Chinese Loading and Unloading Contractors' Association ,
38 - A , Pekin Street, Singapore, 1 .
Taxi Transport Association ,
7 , Muar Road, Singapore , 7.
Singapore Sauce Manufacturers' Association,
76 - A , Robinson Road , Singapore , 1 .
Singapore Chinese Gold and Silver Merchants Association,
38 - C North Canal Road , Singapore, 1 .
Singapore Chinese Druggists Association,
119, Tyrwhitt Road, Singapore , 8.
Sim Lim Siong Giap Kong Huay,
341 - A , Beach Road, Singapore, 7.
Singapore Firewood Merchants' Association,
26, Sumbawa Road , (1st Floor), Singapore, 7.
Kheng Keow Coffee Merchants Restaurant and Bar-Owners' Association ,
8-10, Malabar Street, Singapore, 7 .
Singapore Importers' and Exporters'Association ,
76 - C , Robinson Road, Singapore, 1 .
Singapore Bakery Trade Association,
78 , Waterloo Street, Singapore, 7 .
Singapore Chinese Dry Cleaning Owners' Association,
2 Cuppage Road, Singapore , 9 .
Singapore Chinese Bus Owners' Association,
945 - B , Serangoon Road, Singapore, 12.
Firewood and Charcoal Dealers' Association ,
64-A , Palembang Road , Singapore , 7 .
Singapore Chinese Engineering Merchants' Association,
3 - B , Hamilton Road , Singapore, 8.
Singapore Chinese Textiles and Sundries Importers' Union,
148, Neil Road, Singapore , 2.
Foochow Coffee Restaurant and Bar Merchants' Association, Singapore,
64 - B , Queen Street, Singapore, 7.
Singapore Lighter Owners' Association ,
12 - A , Bonham Building, Singapore, 1 .
Singapore Cheohern Kimkuay Hiangswa Union,
19 - A , Carpenter Street, ( 1st Floor ), Singapore , 1 .
Singapore Chinese Laundry Owners' Association ,
77, Neil Road , Singapore, 2.
Beach Road Market Vegetables and Fruit Dealers ' Association ,
129, Beach Road, (1st Floor ), Singapore, 7.
The Singapore Building Materials Suppliers' Association ,
92 - A , Syed Alwi Road , Singapore , 8 .
Singapore Fruits and Vegetables Importers' and Exporters' Association ,
17 - A , Upper Circular Road , Singapore, 1 .
Singapore Wholesale Fish Merchants' Association ,
14-A , Tew Chew Street, Singapore, 1 .
The Singapore Employers' Federation,
Room No. 1, 23 - A , Amber Mansions Orchard Road , Singapore , 9.
SOURCE : Ministry of Labour, Singapore, October 1964.
Organization and address
Singapore Cantonese Jewellers ' Association ,
8 - B , Tras Street, (2nd Floor ), Singapore, 2 .
United Motorsampan Association ,
95-B , Boon Tat Street, Singapore, 1.
Singapore Chinese Barber Employers' Union
436 - B , Victoria Street, (2nd Floor), Singapore, 7.
Singapore Siam Importers' and Exporters' Association ,
46 - C , South Bridge Road , Singapore, 1 .
The Master Printers' Association,
65 - A , Hill Street, Singapore, 6 .
The Singapore Contractors' Association,
150 , Neil Road, Singapore , 2 .
Singapore Rubber Millers' Union,
117 - A , Cecil Street , Singapore, 1 .
Singapore Motor Tyre Dealers' Association,
43-C , Jalan Besar , Singapore, 8.
The Singapore Bicycle Dealers'Association,
8 - A , Bugis Street, ( 3rd Floor ), Singapore, 7.
Singapore Public House Owners' Association ,
62 - B , Race Course Road, Singapore, 8.
Singapore Shipping Association ,
48 Cecil Street, Singapore, 1.
Theatrical Association of Malaya ,
50 - A , New Bridge Road, Singapore, 1.
The Singapore Furniture Manufacturers' Association,
232-B, Geylang Road, Singapore, 14 .
Singapore Maritime Employers' Federation,
Tinlayson House, (5th Floor), 4, Rafies Quay, Singapore, 1 .
Singapore Chinese Wooden Box and Case Manufacturers' Association,
521 -B , Havelock Road, Singapore , 3 .
The Singapore Restaurant Merchants' Association,
8, Smith Street, Singapore, 1 .
Association of ChineseWheatFlour Merchants of Singapore ,
Eastern Mansion Flaton No. 26, Block A - 4 , Ground Floor, Meyer
Road, Singapore, 15.
Federation ofBrick and Tile Manufacturers of Singapore,
28 - A , South Canal Road , Singapore, 1 .
Singapore Petroleum Products Dealers’ Association,
276 - B , Race Course Road, Singapore, 8.
The Singapore Rubber Goods Manufacturers' and Traders’ Association
434 - C , Victoria Street, Singapore, 7 .
Motor Traders' Association of Malaya,
45 , Orchard Road, Singapore, 9 .
TheGranite Quarry Owners' and Employers' Association of Singapore,
96 , Market Street , Singapore , 1 .
Singapore Sanitary Contractors' Association ,
77, Pagoda Street, Singapore, 1.
Singapore Permanent Hair-Waving Employers' Association,
71 - B , Westerhout Road , (Lorong 20 ), Geylang, Singapore, 14.
The Singapore Electrical Contractors' Association,
365 - D , Serangoon Road, Singapore, 8.
Singapore Shipwright Contractors'Association,
28 - A , South Canal Road, Singapore , 1 .
95
 Appendix I. Sarawak : Rates of pay by industry in nongovernment
establishments, January 1963
[In Malaysian dollars)

Wage rate
Industry
Hourly Daily Weekly Monthly

Agriculture:
Tapper 2.50– 4.00
Smokehouse worker 2.00- 4.50
Forestry (Logging ) :
Timber measurer . 165.00–200.00
Sawyer .. 155.00–190.00
Sawmiller 180.00–185.00
Logger1
Metalmining (except iron ore mining) :
Blaster .. 4.00- 6.00
Manual worker . 2.50- 3.50
Crude petroleum and natural gas :
Marine --- 69.60–93.12
Oil production 1.46-1.79
Driver .. 1.46–1.67
Stone quarrying, clay and sand pits :
Blaster ... 249.00
Greaser . 4.50- 5.50
Manual worker 3.30– 8.00
iii

Food manufacturing :
Rice miller .. 170.00–220.00
Oven man . 3.90– 5.00
Flour mixer . 3.40- 3.90
!!

Biscuit packer 3.40

Beverage industries:
Syrup mixer . 200.00
Bottle packer . 70.00
Bottle washer .. 2.00
Tobacco manufacturers :
Packer (female worker ). 4.50
Manufacturers of wood and cork (sawmill):
Carpenter--- 5.00-12.00
General worker . 4.00- 8.00
Timber sawyer . 5.00-12.00
Manufacture of furniture and fixtures:
Carpenter ... 280.00-420.00
French polisher . 190.00-234.00
Printing and publishing :
Compositor 156.00-310.00
1211

Pressman .- 170.00–250.00
Manufacture of rubber products:
Rubber grader 2.00- 3.00
--- t

Rubber scrapper .
!!!

2.00- 2.70
Rubber packer . 2.00
Manufacture of chemicals and chemical products :
Packer , 2.50- 4.25
-

Manual worker 4.50- 5.00

Manufacture of metal products:
Welder . 5.00- 8.50
Tin maker . 100.00
Tin plate chopper 2.70– 3.70
Tin cutter 3.10- 3.40
Manufacture of transport equipment :
Driver ... 125.00
Mechanic . 6.48- 8.05
Greaser . 2.00- 2.40
Construction :
Painter.. 8.00
i

Mason . 5.00- 8.00

Carpenter 5.00- 8.00
Electricity, gas and steam :
Wireman. 115.00-230.00
Meter reader 145.00–285.00
Engine fitter . 100.00–190.00
Manual worker . 0.55
Water and sanitary service :
Pipe fitter ... 111.02-135.98
Main pipe layer 118.30–130.00
Manual worker .. 4.40- 5.00
Transport :
Mechanic 1.60– 7.00
Driver . 6.00– 7.50
!!

Conductor . 4.00- 4.50

See footnotes at end of appendix .

96
 Appendix I. Sarawak : Rates of pay by industry in nongovernment
establishments, January 1963 — Continued
[In Malaysian dollars)

Wage rate
Industry

Hourly Daily Weekly Monthly

Community service :
Gardener.. 3.40
Conservation worker . 3.90- 7.00

!!
Public health inspector . 3.40- 4.60
Business service:
Clerical staff .. 125.00-485.00
Mechanic .. 110.00-285.00
Storekeeper. 130.00-460.00
Recreation service:
Manual worker . 3.50- 5.00
Gardener ... 100.00

1 Piece rates at 14.50 per ton . Report of the Department of Labour, September 1962 – December 1963
SOURCE : Government of Sarawak, Department of Labour. Annual (Kuching, Sarawak , 1964) , appendix II, table II (Unpublished ).

97
 Appendix J. Changes in labor legislation affecting industrial
relations and trade unions in Malaysia
The year 1965 has been momentous in Malaysia,
not only because of the secession of Singapore, but
also because of newly enacted labor regulations
relating to industrial relations (under authority of
Malaysia's Emergency (Essential Powers) Act of
1964 which gives the government certain powers
because of the confrontation with Indonesia ).
The enactment of the new regulations changes the
National Government's approach to industrial
relations and the trade union movement from what
was essentially one of laissez faire to rather strict
control, particularly over strikes and other industrial
action in 15 sectors of private and public services and
industries declared “ essential” under the Essential
( Trade Disputes in the Essential Services) Regula
tions, 1965, published in the government's Gazette
on September 23, 1965.
The Essential (Trade Disputes in the Essential
Services) Regulations, 1965, applicable throughout
Malaysia, repealed two other laws, both enacted
May 14, 1965—The Essential (Prohibition of
Strikes and Proscribed Industrial Actions) Regula
tions, 1965, and the Essential (Arbitration in the
Essential Services) Regulations, 1965. The former
prohibited all forms of industrial action, including
strikes, in some 23 government departments and
services such as public utilities, medical and health
services, defense, civil defense, police, prisons,
immigration , public works, mines, information,
radio and television, and fire services, among others.
The latter law prohibited strikes or other industrial
action in 16 sectors of private and quasi- government
employment unless the Minister for Labour, after
21 days, decided not to refer the dispute to com
pulsory arbitration . The 16 sectors included the
employees of municipalities and local authorities,
wage and salary earners engaged in the coconut, palm
oil, and pineapple industries, and employees of
banks, newspapers, and the rubber industry, among
others. The latter law also provided for an Industrial
Arbitration Tribunal “ For the purpose of settling
trade disputes in essential services, which cannot
otherwise be determined ...” (art. 3) .
The new law, the Essential (Trade Disputes in the
Essential Services) Regulations, 1965, achieves
essentially the same objective as the two superseded
laws of May 14, 1965, but is less severe. Under the
new law, the number of categories of public and
98
private services and industries declared “ essential
has been reduced to 15 as follows :
All forms of transport
Banks
Ports and related services
Rubber planting and processing
Mining and smelting
Timber, logging, and sawmilling
Rice mills and depots
Postal, telegraph, and telephone service
Gas, electricity, and water services
Medical and health services
Fire services
Petroleum industry
Departments of Information , Broadcasting, and Television
Department of Civil Defense
Government Printing Department
The services and industries, omitted from the ne
regulations which had been included under th
former ones, include : Civilian employees of the polic
and prisons ; National Government departments
customs, public works, civil aviation, drainage
irrigation, mines, and welfare ; employees of muni
ipalities and local authorities; and workers engage
in the coconut, palm oil, and pineapple industries.
Under the new law , the Minister for Labour mus
make every effort to settle industrial disputes in th
scheduled essential services either through his ow
initiative or by notice of either party to the dispute
If, after 21 days , his efforts are unsuccessful, th
Minister, within 7 days, “may ” refer the dispute t
the Industrial Arbitration Tribunal , which has bee
reconstituted under this law (the Tribunal consists o
a chairman, a panel of independent persons, a pane
of persons representing employers, and a panela
persons representing workmen; all are appointed by
the Minister for Labour); the working Tribuna
consists of the chairman and three members (on
from each of the three panels) . Decisions ar
reached by a majority vote, or in the failure of
majority decision, by the chairman. Parties to
dispute are permitted representation by counsel
In case of a dispute in the national or state govern
ments, the consent of the appropriate Head of Stat
must be obtained by the Minister for Labour before
dispute can be referred to the Tribunal.
The awards of the Tribunal are " final and con
clusive and shall not be challenged, appealed against
reviewed , quashed, or called in question in any
court ” (art. 9) . Decisions are to be made without
delay and, where practicable, within 30 days from
the date of reference of the dispute to the tribunal.
Strikes are prohibited ( 1 ) during the 21-day period
a dispute in an essential service is being mediated by
the Minister for Labour, or the 7 days ' subsequent
period during which he may decide to refer a dispute
to arbitration ; (2) after a dispute has been referred to
the Industrial Arbitration Tribunal; (3) after the
Head of State has withheld consent to refer a dispute
in a government service to the Tribunal ; and (4)
during the term of an award or agreement made
under this regulation.
Penalties are provided for noncompliance ; they
include imprisonment not exceeding 1 year or a fine
not exceeding M $ 1,000, or both.
Malaysia enacted several other laws in 1965
which bear directly on labor, as follows :
1. Port Workers (Regulation of Employment)
Order, 1965 (August 5, 1965)—was enacted “ to
ensure greater regularity of employment for port
workers and to secure that an adequate number of
port workers is available for the efficient performance
of port work .” Thus far, the order is applicable
only to the stevedores at the port of Penang.
2. Industrial Courts (Amendment) Act , 1965
(August 9, 1965) . This law amends Peninsular
Malaysia's Industrial Courts Ordinance so as to :
(a) " enable the minister to intervene in and take
such measures as he may consider necessary to the
settlement of any existing or apprehended trade
dispute, whether or not such dispute has been
reported to him ;" (b) " provide for some additional
and less formal machinery to deal with disputes
which are not of sufficient importance or complexity
as to justify reference to a formal court of inquiry; "
and (c) “ vest the powers of intervention in disputes
with the minister rather than with the Commissioner
for Labour.”
3. The Trade Unions Act , 1965 (August 9 , 1965 ) .
The law provides wider definition to the Trade
Unions Ordinance of 1959 (now applicable to Sabah
and Sarawak ). Under the Trade Unions Ordinance
of 1959, any seven persons were able to form a trade
union and there was no provision to prevent dis
senting groups within a trade union from forming
their own trade unions. Under the Trade Unions
Act of 1965, the national registrar of trade unions is
empowered “ to refuse to register, or to cancel the
registration of, any trade union where he is satisfied
that there is in existence a trade union in respect of
the trade, occupation, or industry concerned and it
is not in the interest of the workmen in that trade,
occupation, or industry that there be other similar
trade unions . Under clause 5 of the new law, any
registered trade union is prohibited from forming
with any other trade union a joint consultative or
other body except with the prior permission of the
registrar of trade unions. Clause 6 of the new law
" prohibits the employment by trade unions of
persons who are not resident in the States of Malaya,
or who hold office in or are employed by, any other
trade union .”
4. Modification of Laws( Trade Unions)
(Sarawak) (Modification and Extension) Order,
1965 (August 19, 1965) . This law provides for
the extension of Peninsular Malaysia's Trade Unions
Ordinance of 1959 to Sarawak . The extension of this
law to Sarawak as extended earlier to Sabah, pro
vides the National Government with full authority
in regulating trade union organization and activities
in Malaysia's eastern region.
99
 Sources of Information on Malaysia and Singapore
The Country, its Government, and its Workers
General

Official sources of general information are :

Borneo Literature Bureau . Life in a Longhouse by Hedda Morrison . Printed by Yee Tin Tong Printing
Press, Ltd., Hong Kong. 1962 .
An excellent account of Iban life in a longhouse. Bilingual (English and Malay)
Department of Broadcasting. North Borneo Today. Jesselton , North Borneo (now Sabah ). No date.
Brief description of the people, government, and economy of Sabah .

Economic Development Board . Guide to the Establishment of Industry in Singapore, Malaysia. Singapore .
May 1964.
Brief information on procedural matters likely to be of interest to prospective industrial entrepreneurs
and investors considering the establishment of a manufacturing enterprise in Singapore. Contains informa
tion on business registration , incorporation of companies, banking and insurance business, foreign exchange,
excise duties, certificate of fitness for occupation, labor legislation, provident fund program , and import and
export controls.

Economic Development Board . Industrial Opportunities in Singapore. Printed by the Straits Times Press,
Ltd. Singapore. August 1962 .
An introduction to Singapore, its existing industries, financial services, labor, living conditions, and its
trade by principal countries from 1956 through 1960. In English .

Embassy of Malaysia. Backgrounder. Malaysia Information Service. Washington, D.C. January 1964 .
A series of pamphlets presenting essentially the same material as that contained in Malaysia in Brief.
In English .

Government of Singapore. Social Transformation in Singapore. A Ministry of Culture publication. Singa

pore . 1964.
A brief description of the institutions of social transformation in Singapore. Also describes Singapore's
health, education, industrialization, and labor courts. In English .
Government Printer. An Introduction to Sibu and the Third Division . Information Service of Sarawak .
1964.
Description of the population in Sibu, public holidays, and religion . In English .

Annual Report of the Medical and Health Department, 1963. Kuching, Sarawak . 1964 .

Census of Population, North Borneo, August 1960. Kuching, Sarawak .

Tables on North Borneo's (Sabah's ) population .

Commission of Inquiry Into Education, Singapore: Final Report. Singapore . 1964 .

A detailed description of education in Singapore. Includes statistics. In English.

Estimates of Federal Expenditure in respect of Malaya for the year 1964. Kuala Lumpur . 1963.
Volume 1 .
Statistical data on Malaya's statement of accounts, estimates of revenue, and summaries of the estimates
of expenditure with comparisons between 1963 and 1964, and actual expenditures for 1962 .

100
 Federation of Malaya: Official Yearbook, 1951. Kuala Lumpur. December 1960.
A survey of Malaya's geography, climate, demography, government, industrial training, employment
services, provident funds and pensions, industrial disputes, labor unions, employer organizations, education,
health, national economy, and armed forces. In English.

Indonesian Intentions Towards Malaysia. Kuala Lumpur. April 1964. In English .

A brief historical development of Indonesia's relations with Malaya, Singapore, Sabah and Sarawak
since 1945 .

Invest in North Borneo . Jesselton, Sabah (formerly North Borneo ) . 1961 .

General survey of geography, climate, population, religion, literacy, indigenous peoples, Chinese,
Europeans, administration, labor supply, labor legislation, wages, and cooperative organizations. In English .

Malaysia : Agreement concluded between the Federation of Malaya, United Kingdom of Great Britain
and Northern Ireland , North Borneo, Sarawak and Singapore. Kuala Lumpur. 1963. In English.
The Official agreement establishing Malaysia. Includes the Constitutions of Sabah, Sarawak and
Singapore, and financial arrangements between the states and the National Government.

Malaysia and the World. Published by the Ministry of Culture, Singapore. 1964. In English .
Two speeches by Mr. S. Rajaratnam, Singapore's Minister for Culture, entitled " Malaysia and the
Changing Patterns of World Politics " , and " What is wrong with Big Brother ” , related to the political con
frontation with Indonesia .

Malaysia's Case In the United Nations Securiiy Council . Documents reproduced from the official
record of the Security Council proceedings. Published by Malaysia's Ministry of External Affairs. Kuala
Lumpur. 1964.
Statements made by Dato' Dr. Ismail bin Data' Abdul Rahman, leader of the Malaysian Delegation
to the United Nations Security Council, and statements by the leaders of the other delegations in the meetings
of the Security Council from September 9 to 17, 1964. The statements concern the political confrontation
with Indonesia, specifically Indonesian troop landings in South Malaya in early September 1964.

Malaysia in Brief. Department of Information, Kuala Lumpur. September 16, 1963.

A brief guide to Malaysia presenting its territories and people, central and state governments, economic
framework, national development, and labor and industrial relations. In English .

Our Government, Our Rights, Our Duties. Sarawak Information Service. Kuching, Sarawak. 1964.
A description of the government of Sarawak . In English.

Report of the Commission of Inquiry Into Vocational and Technical Education in Singapore. Singa
pore. 1961 .
Detailed report on in - service training, vocational and technical training, and manpower. In English .

Sarawak Annual Report, 1962. Kuching, Sarawak . 1963.

Information similar to that contained in the Federation of Malaya Official Yearbook above . In English.

Sarawak Government Staff List, 1963. Parts 1 , 2, and 3. Kuching, Sarawak. 1963 .

Singapore Civil Service: Manual of Salaries and Allowances, 1964. Singapore. 1964. In English.

Some Facts About Sarawak . Kuching, Sarawak. 1964.

An excellent brief account of the multiracial population in Sarawak . In English .

State of Sabah Annual Report, 1963. Jesselton, Sabah. 1964.

Information similar to that contained in the State of Singapore Annual Report below. In English.

State of Singapore Annual Report, 1962. Singapore . 1964 .

Survey of Singapore's history and administration, population, economy, culture, education, health, and
labor and welfare . In English .

State of Singapore Directory, May 1964. Singapore. 1964.

A detailed directory of the Government of Singapore, including the Ministry of Labour. In English.

101
 The Battle For Merger. A Ministry of Culture Series on: Towards Socialism , Vol. V. Singapore.
No date.
A series of 12 radio talks between September 13, 1961 , and October 9, 1961 , on the struggle for inde
pendence through merger between Singapore and the Federation of Malaya, presented by Lee Kuan Yew ,
Prime Minister of Singapore .

.
The Constitution of the State of Sabah . Colony of North Borneo, Government Gazette, Extraordi
nary, Vol . XVIII, No. 44. Jesselton . August 19, 1963. In English.

The Federal Consiitution . Attorney General's Chambers. Kuala Lumpur. March 30, 1964. In
English .

Her Majesty's Stationery Office. Iban Agriculture: A Report on the Shifting Cultivation of Hill Rice by the
Iban of Sarawak. Colonial Office, Colonial Research Studies No. 18. London. 1955 .

The Federation of Malaysia. Central Office of Information. Reference Pamphlet 56. London .
1963 .

In addition to the government sources on general information, there are numerous

quasi-governmental and nongovernmental sources which provide excellent coverage, either
complete or partial, on various aspects of Malaysia. These sources include :
Davies, Derek, ed ., Far East Economic Review . Marina House, Hong Kong. Various issues for 1963, 1964 ,
and 1965 .
A journal of trade, industry, finance, transportation, and public affairs in East and South Asia . Articles
on Malaysia. Published weekly in English.

First National City Bank . Malaysia. New York . 1964 .

A brief economic geography of Malaysia .

Gullik, J.M. Malaya. Ernest Benn Ltd. , London. 1963 .

Hanna, Willard A. Malaysia , A Federation in Prospect . In American Universities Field Staff Reports Service ,
Southeast Asia Series, Volume X, Nos. 1-6 and 11-17 ; Volume XI , Nos. 2-3, 5-6 , and 11-14 ; and Volume
XII, No. 12. American Universities Field Staff, Inc. Madison Avenue, New York. 1963–64.

Hock , Tjoa Soei. Institutional Background to Modern Economic and Social Development in Malaya. Govern
ment Printing Office, Kuala Lumpur. 1963 .
Leifer, Michael. “ Communal Violence in Singapore." An article in Asian Survey, Volume IV, No. 10,
October 1964. Published monthly at Berkeley, California, by the Institute of International Studies,
University of California .

McKie, Ronald. The Emergence of Malaysia. Harcourt, Brace and World, Inc. New York. 1963 .
Mills, Lennox A. Malaya : A Political and Economic Appraisal. University of Minnesota Press. 1958.
Milne, R.S. "Malaysia ” . An article in Asian Survey, Volume IV, No. 2, February 1964. The Asian Survey
is published monthly at Berkeley, California, by the Institute of International Studies, University of
California .
The article concerns the political development of Malaysia.
New York Times. Malaysia, Another Year of Progress. August 30, 1964.
An overall brief review of Malaysia's establishment, economy, health services, and education .
Ooi, Jin-Bee . Land, People and Economy in Malaya. Longmans, Green and Company Ltd. London . 1963 .

Phillips, William T. “ Malaysian Development ” . In SAIS Review , Autumn 1964 ; Doris F. Jackson , ed .
School of Advanced International Studies of the Johns Hopkins University. Washington, D.C. 1964.
The article is on the development of Malaysia.

Rueff, Jacques, Chairman. Report on the Economic Aspects of Malaysia. Report by a mission of the Inter
national Bank for Reconstruction and Development . Kuala Lumpur, Government Printing Office, 1963 .
A report on the economic framework of Malaysia and its effect on the merger of Malaya, Singapore,

102
Sabah and Sarawak into one country. In English .

Shadbolt, Maurice. " In Storied Lands of Malaysia ,” National Geographic Magazine, November 1963.
Washington, D.C.
A general description of Malaysia and its peoples.

Silcock, T.H. , ed ., Readings in Malayan Economics. Published by Donald Moore for Far Eastern Universities
Press, Ltd. , Singapore, 1961 .
Contains a group of articles on economic growth in peninsular Malaysia, and on rubber and tin .

Straits Times Press (Malaya) Ltd. Singapore Trade. Published in cooperation with the Ministry of Finance,
Singapore. Anson Road , Singapore. Various issues for 1963 and 1964.
Published monthly. Describes various aspects of Singapore's trade and economic development. In
English .

Sutter, John 0. " Report from Sabah ” . In SAIS Review , Autumn 1964; Doris F. Jackson , ed . School of
Advanced International Studies of the Johns Hopkins University. Washington, D.C. 1964.
A brief description of confrontation, native peoples, and education .
The Malay Mail. Malaysia : Yearbook, 1963–64. Jalan Pudu, Kuala Lumpur. 1964 .
An excellent overall account of the geography, peoples, politics, government (national and local ),
economy, health, education, and history of Malaysia. In English .

Tourist Promotion Board . Singapore 1964: A Guide for Businessmen and Visitors. Raffles Place, Singapore.
A brief outline of Singapore's geography, government, population, social welfare, housing, communica
tions, cooperative development, and industrialization. In English.

U.S. Department of Agriculture. A Survey of Agriculture in Malaysia. Prepared by the Economic Research
Service, Foreign Regional Analysis Division. Washington , D.C. October 1964.

U.S. Department of Commerce. Basic Data on the Economy of Malaysia. In Overseas Business Reports
prepared by the Bureau of International Commerce. Washington, D.C. March 1964.

Wang, Gungwu, ed . Malaysia, A Survey. Published by Frederick A. Praeger, New York. 1964.
An account of Malaysia's natural and human structure, historical background, society and culture, and
economic development.

Worsnop, Richard L. Malaysia Federation : Union of Convenience. In Editorial Research Reports, Richard
M. Boeckel, editor. Volume 2 , 1963. Washington , D.C. 1963.

Data on labor are published in English, either monthly, quarterly or annually, by the
various labor agencies of government, namely the Ministry of Labour, Malaysia, the Labour
Department, Singapore, the Department of Labour and Welfare, Sabah, and the Department
of Labour, Sarawak . In addition, the national government and the governments of
Singapore, Sarawak and Sabah have published annual yearbooks or annual reports which
contain chapters relating to labor for the year concerned. The Ministry of Labour,
Malaysia, has also published at least one special report directly related to labor. These
publications may be obtained from the Government Printing Office or from the particular
agency responsible for their publication:
The government publications on labor include:
Department of Labour. Annual Report of the Department of Labour, Sarawak, September 1962 - December
1963. Prepared by H.J. Cheesley, Commissioner for Labour, Sarawak . Unpublished.
Information on labor supply and demand , unemployment training, wages movements, hours of work,
annual leave, recruitment, trade unions, negotiating and consultative machinery, trade disputes, safety and 1

welfare, health, social security, women and children , and labor legislation . Contains tables on wages, trade
unions, workmen's compensation, and government training overseas. In English.
Department of Labour and Industrial Relations. Federation of Malaya Report on Employmeni, Unemploy
ment and Underemployment, 1962. Department of Statistics, Federation of Malaya. Kuala Lumpur.
June 1963.

103
 A detailed study on employment, unemployment and underemployment in Malaya in 1962. Many
statistical tables on employment . In English .

Department of Labour and Welfare . Summarized Quarterly Labour Returns. Jesselton, Sabah .
Mainly statistical data on labor force by ethnic group, geographic location, and distribution by industry,
estate, and government. Issued quarterly . In English .
Federation of Malaysia. Monthly Statistical Bulletin of the States of Malaya. Department of Statistics.
Kuala Lumpur. Issued monthly.
Data on employees by industry, by occupational groups, and labor force turnover, average wage rates,
and hours and days worked in the tin industry. Issued monthly. In English.

Quarterly Development Statistics, States of Malaya. Department of Statistics, Kuala Lumpur.

Issued quarterly.
Contained tables on labor and social welfare with information on employment exchanges, training
centers, and apprentices. Published quarterly. In English .
Government Printer. Annual Report of the Labour Department, 1961. Department of Labour. Singapore.
1962 .
Detailed information on the Department of Labour, industrial relations and trade disputes, employ
ment, trade unions, Labour Court, safety, health and welfare, and workmen's compensation . Contains
tables. In English.

Annual Report of the Ministry of Labour, 1961. Ministry of Labour. Federation of Malaya.
Kuala Lumpur. 1963.
A detailed report of the Ministry of Labour, its organization and function, industrial relations, labor
legislation, trade unions, enforcement, safety, health, and welfare. Contains tables on wages, disputes, etc.
In English .

Government Gazette — Industrial Relations Supplement. State of Singapore. Various dates through
1963, 1964, and 1965.
These are in effect official printed copies of just collective bargaining agreements which have been regis
tered with and certified by Singapore's Industrial Arbitration Court. The collective agreements published
in the Government Gazette present detailed clauses on working conditions and set the pattern of employer
employee relationship for the duration of the agreement. Many contain tables on salaries, wages , and incre
ments for the employees or wage earners covered by the agreement.

Report of the Department of Labour and Welfare, 1962. Department of Labour and Welfare .
Jesselton , Sabah, 1963 .
A general review of the activities of the Department of Labour and Welfare, including industrial rela
tions, living conditions, women and young persons, legislation, international labor conventions, and health ,
safety, and welfare. Contains tables on the labor force, wages, accidents, compensation, and trade unions .
In English.

States of Malaya, Annual Report of the Trade Unions Registry, 1963. Registrar of Trade Unions.
Kuala Lumpur. 1964.
Describes trade union membership and lists the trade unions in Malaya. In English.
Minister for Labour. The Third Report of the President of the Industrial Arbitration Court, 1963. Ministry
of Labour, Singapore. 1964.
Statistical details of the activities of the Industrial Arbitration Court in 1963. In English.
Ministry of Labour. Monthly Report of the Ministry of Labour. Kuala Lumpur. Issued monthly.
Detailed data on a monthly basis for employment, enforcement, industrial relations, unions, negotiations ,
agreements, disputes, strikes, arbitration, wages council, and joint industrial relations machinery. Issued
monthly. In English.
Singapore Labour Department. Monthly Report. Singapore. Published monthly in English .
Date on industrial relations, employment exchanges, training, unions, labor court, workmen's compen
sation , labor inspections, children and young persons, and enforcement. Includes tables on disputes, strikes,
and cases handled by the Labour Court. Published regularly .
Nongovernment publications on labor include :
Gamba, Charles. Labour Law in Malaya. Background to Malaya Series No. 8. Published by Donald
Moore, Singapore. 1957.

104
 A general review of the laws concerning labor in Malaya and Singapore and their application to trade
union development and settlement of disputes. Also describes the systems of wage payment for Chinese and
Indian workers. In English.

The National Union of Plantation Workers. Donald Moore, Eastern Universities Press. Sing
apore, 1962 .

The Origins of Trade Unionism in Malaya. Donald Moore, Eastern Universities Press. Singapore,
1962.

International Labor Office. The Trade Union Situation in the Federation of Malaya. Report of a mission
from the International Labor Office, Geneva, 1962.
An excellent account of the trade union movement in Malaya with data on membership, structure,
characteristics, trade union legislation, employer organizations, and labor disputes. In English .
Prevention and Settlement of Industrial Disputes in Asia. Geneva. 1962. (Labor-Management
Relations Series No. 15. )
A detailed account of the prevention and settlement of disputes in Malaya and Singapore, including data
on the government agencies involved .

Yearbook of Labour Statistics, 1963. Geneva, Switzerland, 1963 .

Josey, Alex. Trade Unionism in Malaya. Donald Moore, Eastern Universities Press. Singapore. 1958 .
Malayan Trades Union Congress. Annual Report 1962–1963. Kuala Lumpur. 1963.

Malaysian Trades Union Congress. Report of the General Council of the Malaysian Trades Union Congress,
1963–64. Kuala Lumpur. Presumably 1964.

National Union of Plantation Workers. 2nd Triennial Report for 1959–1962. Petaling Jaya, Selangor,
Malaya. 1962.
A detailed report of the activities of the National Union of Plantation Workers in Malaya. Among other
things, data are presented on industrial relations, social insurance, and the relation of the NUPW with the
government.

☆ U.S. Government Printing Office: 1965—781815

105
3
 The Division of Foreign Labor Conditions has also issued
Report
number Title Price

241 Labor Law and Practice in Austria (September 1963) . 40 €

218 Labor Law and Practice in Bolivia (November 1962) 30¢
227 Labor Law and Practice in Ceylon ( November 1962) 35€
217 Labor Law and Practice in Colombia (October 1962) - 35€
220 Labor Law and Practice in Costa Rica (November 1962) . 30 ¢
242 Labor Law and Practice in Ecuador (February 1963) . 35€
280 Labor Law and Practice in El Salvador (March 1964) - 306
223 Labor Law and Practice in Guatemala (December 1962) 25€

--
244 Labor Law and Practice in Haiti (August 1963) . 40 €

189 Labor Law and Practice in Honduras (September 1961) . 30¢

276 Labor Law and Practice in Iran (May 1964) 40¢

221 Labor Law and Practice in Iraq (November 1962) 30€

240 Labor Law and Practice in Mexico (November 1963) -- 45€

282 Labor Law and Practice in Morocco (September 1964 ). 45€

265 Labor Law and Practice in Nicaragua (January 1964 ). 50¢

271 Labor Law and Practice in Pakistan ( December 1964)---- 45¢

253 Labor Law and Practice in the Philippines (October 1963) 50€

269 Labor Law and Practice in Saudi Arabia (April 1964) 35€
285 Labor Law and Practice in Sweden (December 1964) 40 €

268 Labor Law and Practice in Taiwan (Formosa) ( April 1964) ---- 45€
267 Labor Law and Practice in Thailand (March 1964 ) 40¢
258 Labor Law and Practice in the Trust Territory of New Guinea (Under Australian
Administration ) (July 1964) 50 €
239 Labor Law and Practice in Turkey (March 1963) -- 45¢
264 Labor Law and Practice in the Union of Burma (April 1964) . 40¢
270 Labor Law and Practice in the U.S.S.R. (July 1964)-- 50€

275 Labor Law and Practice in the United Arab Republic ( Egypt) (December
1964 ) --- 50¢
212 Labor Law and Practice in Venezuela (December 1961 ) . 30€

250 Labor Law and Practice in Yugoslavia (July 1963) . 40€