Will regional standards protect small enterprises from MNCs?

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Regional Standards Aim to Mitigate Disadvantage for Small Enterprises

Malaysia and India have reached a consensus on the necessity of establishing regional standards to enhance the welfare of gig and platform workers, a move that could indirectly benefit small enterprises. Both nations acknowledged that the lack of overarching international standards could place smaller businesses at a competitive disadvantage when operating within the ecosystem dominated by large multinational corporations. The agreement highlights a shared understanding that closer regional cooperation and harmonised standards are crucial for ensuring gig and platform workers receive robust social security and fair treatment, which in turn could foster a more equitable operating environment.
Need for Harmonised Standards Identified

During a bilateral meeting, the Malaysian Human Resources Minister, Steven Sim Chee Keong, and India's Minister of Labour, Employment, Youth and Sports, Dr Mansukh Mandaviya, agreed on the importance of regional cooperation. They specifically noted that the absence of established international benchmarks could disadvantage smaller enterprises when they interact with the practices of large multinational companies in the gig economy. This observation suggests that multinational corporations may operate with greater flexibility or leverage due to the current lack of uniform regulations.
Focus on Worker Welfare as a Corroborating Factor

The discussion between the ministers emphasised the need for closer regional cooperation and shared standards to ensure gig and platform workers benefit from stronger social security protection and fair treatment. While the primary focus is on worker welfare, the establishment of such standards is anticipated to create a more level playing field. By ensuring that all entities, regardless of size, adhere to a common set of principles regarding worker treatment and social security contributions, the intention is to mitigate potential exploitative practices that could arise from disparities in operational scale and regulatory adherence between smaller firms and large multinationals.
Bilateral Cooperation and Existing Frameworks

Beyond the specific issue of gig worker standards, Malaysia and India also reviewed existing bilateral agreements to strengthen their ties. Minister Sim highlighted the significance of a Memorandum of Understanding (MoU) on the Recruitment, Employment and Repatriation of Workers signed in August 2024, which has already improved the management of formal workers between the two countries. The ongoing discussions also encompass potential new MoUs concerning domestic workers and Technical and Vocational Education and Training (TVET), indicating a broader commitment to structured cooperation that could indirectly support small enterprises through improved labour management and skills development frameworks.

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Will regional standards protect small enterprises from MNCs?

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