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.