Malaysia has retained its Tier 2 ranking in the United States’ 2026 Trafficking in Persons Report, the third consecutive year it has held that classification. The ranking recognises significant anti-trafficking efforts but keeps the country short of the minimum standards required to eliminate trafficking.
What Tier 2 means
Under the US State Department’s framework, Tier 2 means a government does not fully meet the minimum standards for eliminating human trafficking but is making significant efforts to comply. The classification sits above Tier 2 Watch List and Tier 3, placing Malaysia clear of the tier that can trigger restrictions on non-humanitarian foreign assistance.
The Home Ministry said the standing reflects continued recognition of Malaysia’s sustained efforts to combat trafficking crimes, including prosecutions of public officials suspected of involvement and increased financial allocations for anti-trafficking operations.
What still needs fixing
The report found that corruption, weak regulation of labour recruiters and inconsistent victim identification continue to undermine progress. It said Malaysia had not effectively regulated labour recruiters, including those charging workers recruitment fees that can lead to debt-based coercion and greater vulnerability to forced labour.
Although investigations, prosecutions and convictions increased over the past year, the report found no employment agencies were prosecuted under the Private Employment Agencies Act. It also noted that many migrant workers paid more than the legal cap of one month’s basic salary in recruitment charges, exposing them to debt-based coercion.
The 2026 report sets out eight recommendations for Malaysia to implement during the next assessment period, from April 1, 2026 to March 31, 2027. These include improving early victim identification, strengthening the quality of investigations, making the recruitment-fee system more accountable, and expanding cooperation with non-governmental organisations.
The Home Ministry said the report also acknowledged Malaysia’s increased financial support for anti-trafficking operations and the deployment of more specialised personnel, including in Sabah and Sarawak.
Malaysia’s continued Tier 2 status means the country remains under scrutiny but has not been placed in the lowest tier, which carries the risk of US sanctions or restrictions on non-humanitarian assistance.
