CSG3: Malaysia & Laos

A Case Study of Socio-Cultural Issues Faced

in Malaysia and Lao PDR

Submitted by:

Chua, Chrystel Ayna

Dela Cruz, Ma. Theresa Anne A.
Deveraturda, Jason Patrick D.
Espiridion, Karen Angela D.
Lim, Angelie Sofia U.
Somcio, Thea Marie Jesusa C.
Soquerata, Jullian S.
Ventosa, Roxanne Angela C.
Verga, Shaun Barnard V.

Submitted to:

Ms. Aurora M. Penaflor

Submitted on:

December 1, 2023
 Table of Contents

Socio-Cultural Issues..................................................................................................................... 2
Malaysia:....................................................................................................................................2
Ethnocentrism in the region................................................................................................. 2
Wealth Gap and Income inequality......................................................................................2
Laos:...........................................................................................................................................3
Insufficient Minimum Wage................................................................................................ 3
Unfavorable Working Conditions........................................................................................ 3
Negative Impacts of Infrastructure and Investment Projects...............................................4
Recommendations given by the ASEAN......................................................................................4
Malaysia:....................................................................................................................................4
Wealth Gap and Income Inequality......................................................................................5
Laos:...........................................................................................................................................5
Insufficient Minimum Wage................................................................................................ 5
Unfavorable Working Conditions........................................................................................ 5
Negative Impacts of Infrastructure and Investment Projects...............................................6
Plan of Action................................................................................................................................. 7
Malaysia:....................................................................................................................................7
Ethnocentrism in the region................................................................................................. 7
Wealth gap and income inequality....................................................................................... 7
Laos:...........................................................................................................................................8
Insufficient minimum wage................................................................................................. 8
Unfavorable Working Conditions........................................................................................ 9
Negative Impacts of Infrastructure and Investment Projects...............................................9
Conclusion.................................................................................................................................... 10
References:....................................................................................................................................12

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 Socio-Cultural Issues

Malaysia:
Ethnocentrism in the region

Malaysia as a country has been facing one of the aftereffects of colonialism, in which the
people of the colonized country have imprinted a racial identity in which a specific race is better
than the others. Malaysia, with the majority of its population being Malays, has the notion that
smaller races like Chinese and Indians are second to them.

With the Malays getting the majority of votes, racial-based ethnocentrism became a trend
in the country and even in their politics, where it led to more harm than unity as the politics only
considered the opinions of the majority who were inclined to the benefit of the Malays. As such,
“racial voting blocs allow undemocratic administrations to remain in power, only amplifying
their exclusion from political participation" (Jaafar, 2021). This means that only those with
power cling to the votes of the majority, and in turn, the poor and marginalized get left out.

Another reason for this is that, with the current technological advances, social media has
exacerbated the level of ethnocentrism to the point where the division of the multicultural
regions of Malaysia gets split because of some dumb ideology left by the colonizers. Social
media became a widespread medium used to communicate the gap between the different races in
the country. The contribution of the presence of social media as a medium resulted in the
Malaysian people being normalized to the idea of ethnocentrism (Omar et al., 2012). In turn, it
resulted in the Malaysians being divided into their own races.

Wealth Gap and Income inequality

Another issue of Malaysia is the large wealth gap and income inequality among its
citizens. Wealth gap is not necessarily a new issue faced by ASEAN member states as it has been
a longstanding problem brought by factors such as globalization and Unfair labor policies.

GINI Index is used to measure the statistical dispersion of the inequality happening inside
the economy of the said country, basically measuring how a country distributes its income to its
working population equally. In the ASEAN region, Data gathered from the World Bank which is
then calculated by the World Economics results in the GINI coefficient (index) ranging from 0,
having low levels of equality, to 100, having high levels of equality. According to the World
Economics computations for the 2019 GINI index, Malaysia scored around 59.7 in the GINI
index, 4th to last of the ASEAN member states in the list. This can be interpreted as Malaysia
having unequal distribution of wealth to its citizens, which poses a lot of social issues.

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Laos:
Insufficient Minimum Wage

The monthly minimum wage for workers in the Lao PDR continues to be insufficient to
ensure an adequate standard of living amid soaring inflation in the country.

In June 2022, it was announced by the government that the monthly minimum wage
would be increased from 1.1 million kip (around US$74) to 1.2 million kip (around US$81). In
May 2023, the minimum wage was increased again to 1.3 million kip (around US$85).
Meanwhile, according to official statistics, year-on year inflation reached 12.81% in May 2022
and continued to rise to 41.3% in March of 2023- the highest rate ever recorded since the year
2000.(Pongkhao, 2023)

Due to the rapidly rising cost of living, including food, daily necessities, and gasoline,
more Lao national workers have crossed the border to Thailand in search of better paying
jobs.(Gerin, 2022)

Unfavorable Working Conditions

Workers employed by Chinese companies, or joint ventures in which Chinese companies

have a significant holding, have been subjected to unsafe conditions and unfair practices.

For instance, on 10 May 2020, four miners (two Lao and two Chinese) were killed in an
explosion at a coal mine operated by a Chinese company in Ta Oy District, Salavan Province. On
26 July 2020, an ethnic Hmong worker was subjected to electric shocks, had his hands and feet
1ed, and was severely beaten at a Chinese-run banana plantation in Hin Heuap District, Vientiane
Province, after he complained of long work hours. In April and May 2021, two Lao workers at
China’s VS Company-owned banana plantation in Borikhan District, Bolikhamxay Province,
died after experiencing severe breathing difficulties. Co-workers suspected their illness was
caused by prolonged exposure to chemicals used on the farm. In April 2021, it was reported that
the owner of a cement plant operated by the Chinese company Guestown-Lao in Nam Bak
District, Luang Prabang Province, failed to pay a month’s wages to more than 200 workers
following the plant’s closure in late November 2020.

In addition, there have been consistent reports of human rights violations committed with
impunity in the Chinese-run Golden Triangle Special Economic Zone (SEZ) in Ton Pheung
District, Bokeo Province. (Pdr, L,2023)

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Negative Impacts of Infrastructure and Investment Projects

The government has regularly failed to comply with its obligations under Article 11 of
the International Covenant on Economic, Social and Cultural Rights (ICESCR) to respect and
fulfill the right to an adequate standard of living, including adequate housing, of individuals and
communities affected by infrastructure and investment projects. The negative impacts of such
projects have involved land confiscation, forced relocation, and resettlement.

According to Lao PDR authorities, the construction of the 417 km high-speed railway
connecting Boten to Vientiane forced 4411 families to relocate to make way for the project. The
compensation by the Lao government for land confiscation, damages, and resettlement was slow
and inadequate. As of January 2019 – more than two years after the start of the project – many of
the affected villagers and families had not received any compensation for their loss or land,
livelihood, and income, forcing some dispossessed farmers to migrate to neighboring Thailand in
search of jobs.

In addition, the right to an adequate standard of living has remained unfulfilled for
survivors of the July 2018 deadly collapse of the Xe-Pian Xe-Namnoy dam in Attapeu Province
and ensuing flooding, which killed at least 71 people and displaced more than 7,000 residents
from their homes. Construction of permanent houses for displaced survivors in Sanamxay
District only began in July 2020, two years after the dam collapse. However, by the end of 2022,
the houses had yet to be completed. As a result, survivors of the disaster have had to live in
temporary shelters with poor conditions, including lack of proper ventilation, absence of clean
water, and unsanitary conditions. (Pdr, L,2023)

Recommendations given by the ASEAN

Malaysia:
Ethnocentrism in the region

Collaborating with ASEAN member states to implement cross-border cultural exchange

programs aligns with the ASEAN Socio-Cultural Community Blueprint, fostering mutual
understanding and celebrating diversity. This initiative aims to promote a shared regional
identity, fostering unity and reducing ethnocentrism. Integrating multicultural education
initiatives into the national curriculum, as outlined in the Blueprint, can cultivate a sense of
common identity and values in Malaysia. By fostering an understanding of diverse histories and
contributions, the nation can work towards reducing the impact of ethnocentrism, contributing to
a more inclusive society. Additionally, forging collaborative media campaigns with ASEAN

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partners to counteract negative narratives on social media supports positive cultural exchanges,
aligning with the Blueprint's objectives.

Wealth Gap and Income Inequality

Addressing inequality in Malaysia necessitates strengthening social protection

schemes/programs. Comprehensive coverage, including unemployment benefits and healthcare,
directly mitigates income inequality, safeguarding vulnerable groups. Investing in education, as
suggested in the ASEAN framework, becomes crucial to reducing disparities and enhancing
opportunities for all. Allocating sufficient resources to provide quality education in economically
disadvantaged areas contributes to long-term socioeconomic equality. Advocating for targeted
policies addressing Gini Index disparities and implementing progressive tax reforms can address
the wealth gap and income inequality, aligning with the goal of achieving a more equitable and
inclusive society in Malaysia.

Laos:
Insufficient Minimum Wage

According to the ASEAN Guidelines on Good Industrial Relations Practices, it is

recommended that nations improve their legal framework and basis for good industrial relations
practices in order to guarantee and protect the basic rights of workers. ASEAN guidelines also
state that building mutual trust and respect between workers and management is helpful in
productive discussion and arriving at a general consensus regarding fair wages and working
conditions. In addition, ASEAN heavily promotes dignity at work and emphasis on best practices
as workers and employees have the right to pursue their material well-being in conditions of
freedom and dignity, and of economic security and equal opportunity. In terms of effective labor
dispute settlement, ASEAN guidelines state that workers and employers have the right and
obligation to resolve disputes or grievances in good faith. It must be ensured that employers
should fulfill the workers’ rights properly.

Unfavorable Working Conditions

The specific instance that is happening between the Laotian workers and the Chinese
firms are not directly addressed by the ASEAN in any formal record but in general, these types
of matters are handled by a specific committee within ASEAN. This committee is the ASEAN
Labour Inspection Committee (ALICOM). ALICOM is responsible for monitoring and

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inspecting labor conditions in member nations to guarantee conformity with international labor
standards.

In particular, ALICOM came up with the ALICOM Work Plan 2022-2030 which sets its
strategic goals and objectives for the following decade. The work plan focuses on developing the
competencies of labour inspectors, strengthening of labour inspection in informal sectors and
SMEs, strengthening labour inspection in hard-to-reach sectors (agriculture, fisheries, mining,
domestic work) and referral systems to prevent forced labour and child labour, and strengthening
labour inspection for future of work including utilisation of ICT for improved efficiency and
effectiveness.

Through the continuous effort of ALICOM, problems like the adverse working
circumstances experienced by Laotian workers should come to light and should be solved more
efficiently. Although ALICOM does not have the capacity to enforce any policies directly, its
aim is to fight for the rights of workers and partner with government authorities and other
stakeholders to accomplish necessary changes. ALICOM's work also entails creating awareness
among the public and organizing initiatives to advocate ethical labor practices. By engaging in
discourse and encouraging accountability, ALICOM aspires to promote a safer and fairer future
of work for all ASEAN workers.

Negative Impacts of Infrastructure and Investment Projects

The ASEAN Human Rights Declaration touches on the issue of the people of Laos being
denied adequate compensation and reparations despite the fact that their lands and properties
were impacted by the government's various infrastructure projects, even though ASEAN has not
directly addressed this situation. Every person has the right to a sufficient quality of life, which
includes the right to decent housing and the right to own property, according to the ASEAN
Human Rights Declaration. In addition to calling for just compensation and reparations for those
impacted, the declaration emphasizes how crucial it is to safeguard the rights of persons
impacted by infrastructure projects. It acknowledges that the advancement of infrastructure
shouldn't come at the cost of an individual's fundamental rights and means of subsistence. The
necessity of significant community engagement and participation in infrastructure project
decision-making processes is also emphasized in the ASEAN Human Rights Declaration. In
order to ensure that no one is left behind in the advancement of the area, ASEAN strives to foster
sustainable development by attending to the rights and concerns of those impacted by
infrastructure projects.

Despite not having legal power, the ASEAN Human Rights Declaration should still be
beneficial to persons affected by these situations since it provides a framework for discussion
and increases awareness. The importance of transparency and accountability in the
decision-making procedures of various national programs is emphasized heavily in the

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declaration. It urges governments and other stakeholders to actively include impacted
communities to guarantee that their rights and concerns are effectively handled. Although not
legally enforceable, the ASEAN Human Rights Declaration serves as a guidance for member
states in promoting and safeguarding human rights.

Plan of Action

Malaysia:
Ethnocentrism in the region

To address the issue of ethnocentrism in Malaysia, a comprehensive plan of action is

required to promote national unity and inclusivity. To begin, immediate steps should be taken to
encourage intercultural discussion and understanding among the various ethnic groups. This
includes educational initiatives that showcase Malaysia's shared history, values, and
contributions of all races while addressing ethnocentric attitudes rooted in colonial legacies. At
the same time, efforts must be made to transform the political environment, moving away from a
system that disproportionately favors the majority race. Implementing electoral reforms that
promote more inclusive representation of all races in decision-making processes. This can help
break the pattern of undemocratic regimes clinging to power through racial voting blocs,
ultimately producing a more fair political environment.

Furthermore, considering the importance of social media in increasing ethnocentrism, it

is critical to develop awareness campaigns promoting responsible and inclusive online discourse.
This entails working with social media platforms to reduce the transmission of divisive content
and misinformation, encouraging a more harmonious virtual space. Educational programs should
also be implemented to improve digital literacy, allowing Malaysians to critically analyze
content and combat the normalization of ethnocentric views. The long-term goal is to redefine
Malaysia's narrative and view of diversity, highlighting the power of unification.

Wealth gap and income inequality

The following plans of action should be established by Malaysia in order to resolve the
problem concerning the wealth gap and unequal income in the region. Firstly, a focus on SDG 8
or promoting sustained, inclusive and sustainable economic growth, full and productive
employment and decent work for all. This is integral in solving Malaysia’s problem as it could be
the foundation in establishing more solutions. In order to achieve this, Malaysia should focus on
the right kinds of investment and have reforms on its minimum wage considering the cost of
living of its citizens. This could be started through identifying and recognizing income disparities

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happening in the region and basing wages on productivity. Having wages strongly connected
with productivity will result in a more fair and equitable relationship between salaries and the
value of goods and services produced.

Along with this, educational and training opportunities could be provided to citizens to
ensure more knowledge and information about the ever-changing economy are given to them.
This will give them the opportunity to think of risks brought by this constant change and create
plans in order to prepare for and be more adaptable to them. These educational and training
opportunities are also relevant in helping increase productivity, which is not only beneficial for
the workers, but also for the overall economic growth of the country.

ASEAN also plays a crucial role in this plan of action as they should work hand in hand
with Malaysia to continuously monitor the country in its plans of establishing and integrating
these courses of action. Moreover, to make it certain that these plans are continually progressing,
part of those that should be monitored are actions by the government to ensure that transparency
is maintained.

Laos:
Insufficient minimum wage

The Laos government plays a huge role in the following plans of action that the region
should implement to solve its problem about insufficient minimum wage. There should be
constant communication between the sector deciding minimum wages and the workers of Laos.
This could be done through having employee representation from the workforce who is present
during decision-making processes, voicing out the needs of workers. This provides transparency
and explanation behind why such choices were made, as well as better and a more fair alignment
between the two sectors. This also ensures that wages align with the personal cost of living of the
workers in the country as needs are voiced out and taken into consideration.

Social entrepreneurship should also be encouraged by advertising the establishments of

micro-, small, and medium-sized enterprises (MSMEs) for more productivity to take place. This
influences more productivity, creates more job opportunities, fosters more training for citizens,
as well as actively contributes to overall economic growth.

Financial assistance programs should also be started to provide low-income workers with
the chance to catch up with changing market prices in the region, as well as give them incentives
to encourage more active participation in productivity. These programs should not only be
limited to the workers, as they could also be provided to the employers themselves. The

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employers could be given incentives especially those who voluntarily give wages that are above
what they are only supposed to give out.

ASEAN member states could play an active role in implementing these courses of actions
as they could help spread awareness through campaigns as these plans are acted out. Public
platforms could be made available to the masses to ask for feedback, monitoring, and further
recommendations on how these actions could be improved.

Unfavorable Working Conditions

ASEAN member states can work together to address the problem of hazardous working
environments and unfair labor practices that impact workers employed by Chinese enterprises or
joint ventures doing business in their countries. This can be done by implementing a
comprehensive plan that starts with each state's labor laws and regulations being strengthened to
bring them into compliance with international norms, particularly with regard to worker rights
and ergonomics. Approaching the Chinese government diplomatically, ASEAN countries can
hold productive discussions aimed at resolving individual cases of mistreatment and encouraging
compliance with regional legislation and international labor standards. It is possible to guarantee
consistent monitoring and reporting on working conditions and promote accountability by
forming joint oversight committees with representatives from China and ASEAN member
nations.

Additionally, worker empowerment and education programs in collaboration with labor

unions and non-governmental organizations (NGOs) will raise awareness and provide employees
with the means to exercise their legal rights. Ethical corporate conduct can be promoted by
encouraging Chinese enterprises to embrace strong Corporate Social Responsibility (CSR)
practices and by putting in place transparent reporting processes. Assuring a continuous
commitment to tackling new issues and defending workers' rights would need offering victims'
legal assistance and support as well as regular evaluations of policies put in place. Collectively,
ASEAN member states have the potential to create a more fair and safe workplace for workers in
Chinese-owned businesses across the region by concerted efforts.

Negative Impacts of Infrastructure and Investment Projects

To address the issue of negative impacts of infrastructure and investment projects in Laos
or Lao PDR, the government can explore both short-term and long-term courses of action that
address immediate challenges and work towards sustainable solutions. In the short term, the
government and project investors should prioritize fast and fair compensation for impacted

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communities, ensuring that individuals displaced by projects receive enough compensation for
their loss of land, livelihoods, and income. Efforts should also be taken to enhance the living
conditions of disaster survivors, such as those affected by the Xe-Pian Xe-Namnoy dam collapse,
by providing temporary shelters with proper ventilation, access to clean water, and sanitary
conditions. However, in order to achieve a sustainable solution and prevent the recurrence of
such issues (human rights violations and environmental degradation), a set of long-term actions
is important.

The group identifies two long-term strategies that the country must adopt. Firstly,
transparency in infrastructure decision-making processes is critical for involving local people in
conversations and allowing them to voice their concerns and contribute to project planning.
Transparency measures, including as open consultations and public disclosures of project details,
can help the government and investors resolve concerns, gather valuable local views, and
promote a more inclusive and responsible decision-making environment. Additionally, by
implementing sustainable development practices aligned with Sustainable Development Goal 9
(SDG9: Industry, Innovation, and Infrastructure), Laos can mitigate social and environmental
consequences. This includes considering alternative project designs that minimize displacement
and environmental impact, investing in green technologies, and ensuring that projects contribute
positively not only to local communities but also to the overall progress of the country,
promoting a balance between economic growth, social responsibility, and environmental
responsibility.

Conclusion

To conclude, Malaysia and Laos face a number of socio-cultural issues, including

ethnocentrism, wealth inequality, insufficient minimum wage, unfavorable working conditions,
and negative impacts of infrastructure and investment projects.

In Malaysia, the government can take steps to promote intercultural understanding and
reduce ethnocentrism by implementing educational initiatives, reforming the political system,
and developing awareness campaigns.
By addressing wealth inequality, the government can focus on investing in education,
implementing progressive tax reforms, and strengthening social protection schemes.

In Laos, the government can take steps to address the issue of insufficient minimum wage
by strengthening its legal framework for good industrial relations practices, building mutual trust
between workers and management, and promoting dignity at work. To address the issue of
unfavorable working conditions, the government can work with ASEAN member states to

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strengthen labor laws and regulations, engage in diplomatic discussions with the Chinese
government, and promote worker empowerment and education programs.
In order to address the issue of negative impacts of infrastructure and investment projects, the
government should prioritize fast and fair compensation for impacted communities, enhance the
living conditions of disaster survivors, and implement transparency in infrastructure
decision-making processes and sustainable development practices.

By undertaking these measures, both Malaysia and Laos can initiate positive change,
addressing their socio-cultural challenges and working towards the establishment of a more just
and equitable society for all.

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ASEAN Guidelines on Good Industrial Relations Practices. (n.d.).
https://asean.org/wp-content/uploads/2021/09/Guidelines-on-Good-Industrial-Relations-
Nov-2012.pdf

ASEAN Human Rights Declaration – AHRD. (2023, February 13). ASEAN Main Portal.
https://asean.org/book/asean-human-rights-declaration-ahrd/

ASEAN Labour Inspection Committee (ALICOM) Work Plan 2022-2030. (2023, July 10).
ASEAN Main Portal.
https://asean.org/book/asean-labour-inspection-committee-alicom-work-plan-2022-2030/

Gerin, R. (2022). Low wages and soaring inflation push Laotians to Thailand
https://www.rfa.org/english/news/laos/passport-applications-06172022181454.html

Pdr, L. (2023). FIDH -Interna,onal Federa,on for Human Rights Lao Movement for Human
Rights (LMHR) Joint submission for the adop,on of the List of Issues No space for civil
society. https://www.fidh.org/IMG/pdf/20230807_laos_cescr73_js_en.pdf

Pongkhao​, S. (2023). Inflation hits new high of 41.3 percent

https://www.vientianetimes.org.la/freeContent/FreeConten46_Inflation_y23.php

Jaafar, F. (2021, September 11). The characteristics of ethnocentrism in Malaysia. Medium.

https://fayyadhjaafar.medium.com/the-characteristics-of-ethnocentrism-in-malaysia-d62f
a5a573af

Ridzuan, A. R., Bolong, J., Omar, S. Z., Osman, M. N., Yusof, R., & Abdullah, S. F. M. (2012).
Social media contribution towards ethnocentrism. Procedia-Social and Behavioral
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World Economic. (2020). Malaysia’s Gini coefficient. World Economics.

https://www.worldeconomics.com/Inequality/Gini-Coefficient/Malaysia.aspx

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