The Ministry of Investment, Trade and Industry (MITI) of Malaysia has announced that the government is actively addressing a regulatory 'gap' highlighted by the Office of the United States Trade Representative (USTR). MITI clarified that Malaysia has a robust legal framework against forced labour, stating that the USTR's findings do not imply that forced labour is practiced in the country. Instead, the USTR identified the absence of a specific law to prohibit imports of goods associated with forced labour. The USTR initiated two investigations against Malaysia in March 2026, focusing on excess capacity and the importation of goods with forced labour content. In response, Malaysia submitted comments and participated in hearings in May 2026. The USTR proposed a 10% tariff on Malaysian goods, which is pending further investigation and a final determination. Public hearings are set for July 7, 2026, with a decision expected shortly after the expiry of a temporary tariff on July 24, 2026. Malaysia aims to engage with the USTR to safeguard its trade interests throughout this process.