Around 280 Bangladeshi migrant workers in Malaysia are demanding back pay and compensation after their former employer, Kawaguchi Manufacturing, abruptly shut down. The plastic parts supplier, which worked with Japanese giants like Sony and Panasonic, allegedly withheld wages for up to eight months before closing its Port Klang factory in late 2023. Workers claim they endured 24-hour shifts, unpaid overtime, and poor living conditions, with their passports confiscated. The Malaysian labour tribunal ordered Kawaguchi to pay over 3 million ringgit (\$694,444), but only a fraction has been received.

Many workers, burdened by recruitment debts of up to \$5,000—far exceeding the official \$650 fee—are trapped in debt bondage. Some were forcibly relocated to new factory jobs without notice and housed in unsanitary conditions. A few were sent to palm oil plantations but refused the work. It took months for them to gain legal approval to switch jobs.

Japan-based firms have responded. Sony and Panasonic cut ties with Kawaguchi after failed remediation efforts, while Daikin agreed to a settlement. The companies pledged to help reimburse recruitment costs, though workers remain heavily indebted due to high-interest loans.

Labour advocates, including Andy Hall, warn the situation may worsen as climate change drives more migrants to Southeast Asia. Lawyer Terry Collingsworth is urging Japanese firms to honor their human rights commitments and further support the workers