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Indonesia’s Labor Laws Outperform Malaysia and Singapore, Study Finds

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Indonesia’s labor laws provide better protection for workers compared to Malaysia and Singapore, according to the latest Labor Rights Index (LRI) compiled by the WageIndicator Foundation and the Centre for Labour Research (CLR).

The LRI report evaluates the presence of laws protecting 46 worker rights components across 135 countries as of January 1, 2022. These components are categorized into ten major indicators, including fair wages, decent working hours, employment security, family responsibilities, maternity at work, safe work, social security, fair treatment, protection against child and forced labor, and trade union rights.

The research findings revealed that Vietnam and Laos have the highest LRI scores within ASEAN, categorized as offering “reasonable access to decent work,” with scores between 71.5 and 75.

Photo: Kata Data (2024)

Countries like the Philippines, Cambodia, Myanmar, Thailand, and Indonesia are in the “limited access to decent work” category, with LRI scores ranging from 60.5 to 70.

Malaysia and Singapore are at the bottom of the ranking, with scores below 50, indicating a “total lack of decent work” according to the LRI classifications.

The LRI data specifies that Malaysian laws fail to protect worker rights concerning family and unionization, while Singapore’s laws provide minimal protection in employment contracts, maternity rights, family-related rights, fair wages, and decent working hours.

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The index scores reflect the existence of labor laws guaranteeing these rights but do not account for the laws’ implementation or the actual conditions of workers in each country.

The findings underscore the need for continued advocacy and policy reform to enhance labor protections in the region. Indonesia’s relative strength in labor laws presents an opportunity for learning and improvement among ASEAN nations, highlighting the importance of legal frameworks in safeguarding worker rights.

A recent study by the WageIndicator Foundation and the Centre for Labour Research places Indonesia ahead of Malaysia and Singapore in labor protections according to the Labor Rights Index. This assessment, which considers laws across ten key worker rights areas, suggests significant room for improvement in labor laws within ASEAN, especially in Malaysia and Singapore. The report calls attention to the critical role of legal protections in ensuring decent work conditions for all workers.

Source: Kata Data (2024)

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