Malaysian Trade Union Congress (MTUC) is most concerned about the serious implication of Investor State Dispute Settlement (ISDS) clauses and provisions in the Trans-Pacific Partnership Agreement (TPPA) and other such agreements and treaties that Malaysia signs. There is a serious concern that once Malaysia is bound by such ISDS clauses, any foreign investor will have the ability to prevent Malaysia from improving the rights and conditions of workers in Malaysia.
On 28th March 2015, it was reported that the government had agreed to the Investor-State Dispute Settlement (ISDS) system.(Malaysian Insider,28/3/2015, Putrajaya okay with investor-state dispute clause in trade pact, says DAP lawmaker)
The ISDS clause empowers foreign investors, which also includes shareholders, to commence legal action against Malaysia if it does anything, even by law or policy, that will result in business having to expend more monies or has an effect on its profits.