A Comparison of Business in Malaysia vs Canada Essay Example
A Comparison of Business in Malaysia vs Canada Essay Example

A Comparison of Business in Malaysia vs Canada Essay Example

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  • Pages: 10 (2549 words)
  • Published: November 10, 2017
  • Type: Research Paper
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In 2003, the Canadian Labour Congress (CLC) had more than 10,000 locals and represented almost 75% of all union workers in Canada through its 113 member unions. According to Godard (220), the CLC aims to influence government laws and policies related to labour relations. The union density rate in Canada was at 30.5% in 2003, indicating that over 30% of non-agricultural paid workers were union members.

Approximately 50% of unionized employees work in the public sector. In Canada, individuals are generally allowed to join a union with few exceptions, such as those holding sensitive positions like managers or those requiring confidentiality. Professional and domestic workers may also be excluded in certain regions. Typically, more than half of eligible workers must vote in favor of a union to obtain recognition.

Within collective agreements, complex and varied structures and contents can be found. These agre

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ements typically consist of six components: Wages/benefits, hours of work and overtime, work rules, job and income security, seniority, and union security and rights. Although they are crucial, these aspects are often subject to controversy (378). The Canadian industrial relations system is significantly influenced by labour law.

Labour law in Canada safeguards workers' rights to participate in unions and engage in collective bargaining, as well as upholding the labour movement's strength. It involves prohibiting employers from terminating union members for lawful union activities, even if it is only one cause of dismissal. The ability to strike without facing reprisals is crucial for employees to impose expenses on management and exercise their right to freedom of speech, despite strikes being demanding and challenging for both parties involved. (336)

Expressing discontent among workers often involves strikes as

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primary means. In Canada, striking workers need not fear possible job loss for exercising their right, as the law prohibits management from hiring permanent replacement workers during the strike. Canada boasts one of the highest levels of strike activity globally. The most recent significant strike in Canada occurred between 1995-1998 when over 250,000 union members and supporters protested Conservative provincial government policies by picketing both public and private businesses in Toronto.

The aim of the "Days of Protest" was to accomplish a shutdown of the city, similar to Canada. Within Malaysia, independent labor unions work towards equal opportunities and contribute significantly towards ensuring worker contentment, regardless of their ethnic background. The Malaysian Trades Union Congress (MTUC) is an all-encompassing organization that consists of members from various races, religions, and cultures.

The MTUC, which has more than 300 affiliated trade unions in Malaysia, is a national organization that strives to protect the rights of laborers. Despite facing obstacles from previous Prime Minister Mahathir Mohamad, who amended the Trade Unions Act in 1980 and impeded progress in the union movement, the MTUC remains unwaveringly dedicated to meeting workers' needs.

In 2000, Malaysia had a union density of only 10%, which is significantly lower than Canada's average of 31%. The growth rate was consistently at an annual rate of 5% before Mahathir became the leader in 1981. However, after his assumption of leadership, it dropped to just 1%, potentially due to his more authoritarian approach. Despite this, Malaysian laborers still have the choice to decide whether or not they want to join a trade union.

Trade unions provide employees with safeguards against victimization by employers. Nevertheless, employers are also allowed to take

actions such as dismissing, demoting, transferring or withholding promotions from workers based on "other grounds" under the same act. Therefore, it is possible for employers to justify their mistreatment of union members within legal limits. To avoid this type of behavior, Canada has implemented labor laws that prohibit it. In general, a union will seek recognition from an employer once over 50% of its staff become members. This recognition process is comparable to the one used in Canada for achieving union recognition.

Collective agreements presented by unions in Malaysia do not cover matters such as promotion, termination of service, transfers, dismissal and retrenchments. However, Canadian collective agreements usually have provisions for job security guarantees and promotion criteria. Strikes are rare in Malaysia due to the good relationship between employers and employees. Nevertheless, strikes can be allowed if negotiation between both parties fails after a collective agreement has expired - a situation similar to Canada.

The protection of employees' right to strike is ensured, except when it is deemed unlawful and could lead to penalties or incarceration. In 1962, a group of 9,000 railway workers in Malaysia staged a 22-day strike advocating for monthly salaries instead of daily wages.

Canada operates under the British common law system where higher courts set standards for lower courts. The Supreme Court of Canada acts as the ultimate court of appeal and has authoritative influence over all national courts by virtue of its judgments.

The Constitution of Canada is made up of codified acts, traditions, and conventions and is considered the highest law. It includes the Charter of Rights and Freedoms, which is a bill of rights found in the Constitution Act of

1982. In terms of corruption, it is not a major issue within the Canadian legal system.

Canada, like any other country, experiences corruption that can be challenging to detect. While bribery among police officers is not as common as in Malaysia, some politicians take advantage of public funds and civil servants or leaders of crown corporations violate regulations for personal gain. One well-known instance of "sophisticated corruption" is the Sponsorship Scandal where $200 million went missing from Quebec sponsorship programs and received media attention. Despite this, Canada's corruption levels are relatively low compared to other countries due to measures and safeguards implemented to promote transparency within the government sector and ensure accountability.

In Malaysia, there is a hierarchical legal system that comprises five levels of courts: Magistrates' Court, Sessions Court, High Court, Court of Appeal, and Federal Court. The highest judicial position in the country is held by the Chief Justice of the Federal Court. Legal practices in Malaysia are anchored on Canada's common law framework. Unfortunately, during the 1988 constitutional crisis when Mahathir dismissed three Supreme Court judges including the Lord President, public trust in Malaysia's judiciary plummeted leading to widespread international condemnation.

According to Anwar Ibrahim, multinational corporations often prefer Singapore's courts due to the perception of corruption and government bias. The legal system faces a high number of unresolved cases, while corruption affects politicians, businesses, and individuals. This has led to concerns about the impartiality of the judiciary and dissatisfaction among the general population with regards to court performance.

For business purposes, foreigners may use the Malaysian legal system but must deposit sizeable amounts before taking legal action. However, due to the sluggish and bureaucratic nature

of courts in handling commercial disputes, mandatory arbitration clauses are typically included in contracts by companies. In addition, there have been reports about selective prosecution and arbitrary verdicts as well as preferential treatment toward lawyers and litigants within the legal system.

The case of Anwar Ibrahim exposes the corruption present within the judiciary, which is often fueled by political agendas. As a former Deputy Prime Minister and Minister of Finance, Anwar released a tape that painted his country's legal system in a negative light. In retaliation, he was charged with sodomy and corruption - allegations that were eventually overturned. However, the corruption charge prevented him from seeking public office until April 2008. Many speculate that this punishment was imposed because Anwar was viewed as a potential successor to former Prime Minister Mahathir and highlights ulterior motives at play. It is ironic that despite these obstacles, Anwar recently led Malaysia's opposition party to victory in federal elections held last month.

Despite being one of the largest police forces globally, Malaysia's law enforcement is infamous for corruption and abuse. The government has identified it as its most corrupt department due to its frequent acceptance of bribes and extensive human rights abuses. Aggressive force is common, resulting in 80 deaths in custody over three years with only six cases pursued. Furthermore, the government often employs police and judiciary methods to suppress political opposition, leading to unnecessary force.

Malaysia's police appear to favor Malays over the country's Chinese and Indian populations, who make up 35% of the total population and receive less attention. Both Canada and Malaysia were once British colonies and inherited political systems from Westminster Parliament. While Canada has

since undergone significant changes in its system of governance, it now resembles the democratic system of America. After gaining independence from Britain half a century ago, Malaysia established a new but underdeveloped government based on the Constitution of the Federation of Malaya crafted by the Reid Commission. Article 153 protects special rights for Malays and other indigenous people (known as Bumiputra) through quotas for entry into civil services, public scholarships, and public education.

Malaysia's history has been impacted by nepotism and cronyism, resulting in a culture of corruption that is challenging to avoid. Although Malaysia and another country have similar political systems, featuring multiple parties, a prime minister, a cabinet, and federal elections held every five years at the most, there is one significant difference. In Malaysia, Barisan Nasional (BN) has won each federal election since independence. The Election Commission manages the elections while citizens over 21 years old can vote for their chosen political party.

Malaysia's democracy is alleged to have died due to corruption issues that have been persistent for a long time, leading to an unjust justice system. The preferential treatment given historically to Malays over Chinese and Indians has resulted in inefficient civil services and political parties divided by ethnicity instead of ideology. In the recent federal election, BN lost their parliamentary two-thirds majority for the first time in 50 years. Despite being known as democratic, past elections were plagued with gerrymandering and vote-rigging perpetrated by the government.

In the 1994 federal election, one vote for BN was equivalent to eight votes for a different party and there were reports of vote-buying from civil servants and dissatisfied teachers. However, in the March 8, 2008

election, Malaysians showed greater readiness by establishing the BERSIH coalition. Before this election, people held a peaceful demonstration that called for fair and open elections while urging voters to demand their rights.

Despite efforts by the organizers to maintain order, police intervened and disrupted the rally. The incident ended up being a turning point for the opposition, resulting in their biggest electoral victory yet. However, Malaysiakini - an independent online news outlet - reported widespread voter fraud that occurred due to gerrymandering tactics. Some voters were secretly registered with the intention of increasing their voting power. Furthermore, according to New Sunday Times reporting, over 72,000 ballot papers went unreturned; this includes 41,564 parliamentary ballot papers and 30,494 state ballot papers.

Even though Canada has not experienced the same magnitude of corruption issues as other countries, there is still a level of corruption within their political system. In 2005, the Canadian prime minister was obligated to testify under oath in connection with a government corruption charge. Apparently, between 1996 and 2002, the federal government paid $250 million to support cultural and sporting events via advertising firms that were friendly to the Liberal party. Nonetheless, government audits determined that the program had numerous gaps as these advertising companies either accomplished very little or none of the work assigned to them. Additionally, it was revealed through government research that these firms charged far too much for their services.

Malaysia's political system categorizes its population by ethnicity, while Canada does so based on ideology without regard to race. As a young nation with only 50 years of history, Malaysia must make significant efforts to improve its political framework and promote democracy. Although

corruption is less widespread in Canada than in Malaysia, anti-corruption measures are still implemented as preventative measures.

Various efforts are in place to combat corruption in business, such as the Business and Industry Advisory Committee (BIAC) and the Centre for Innovation in Corporate Responsibility (CICR). BIAC facilitates communication between government and businesses to promote anti-bribery endeavors, suggesting ways to prevent bribery both locally and globally. Its main focus is on companies that encounter pressure to engage in bribe payments. CICR plays a crucial role by promoting responsible international business practices among Canadian corporations.

Through sustainable human development efforts, the CICR works with Canadian businesses in developing countries to encourage corporate responsibility and high business performance. The Federal Accountability Act, passed by the conservative party in 2006, imposes restrictions on election financing and strengthens transparency, accountability and oversight. Similarly to Malaysia, Canada has implemented whistleblower legislation.

This is a method for reporting corruption in government or business. In Canada, audited financial statements are included in annual reports, which are accessible to the public in relation to government finances. There are independent audits and an Auditor General for all levels of government to prevent money from being overlooked. However, in Malaysia, auditors are often bribed, rendering them ineffective.

To combat corruption in Malaysia, it is essential to enforce the Prevention of Corruption Act. This law identifies corrupt behavior and its consequences while also providing protection for whistleblowers similar to Canada's measures. However, there have been setbacks in its implementation and enforcement. The Anti-Corruption Agency (ACA) is responsible for upholding the Anti-Corruption Act in Malaysia.

The Anti-Corruption Agency (ACA) bears the responsibility of investigating and preventing corruption in public institutions, promoting improvements, giving

guidance and assistance to avoid corruption, and increasing awareness among the public about anti-corruption measures. Despite being accused of lacking independence by citizens, the Malaysian government has faced severe criticism for not reforming the ACA.

In 2004, the National Integrity Plan (NIP) was initiated, with its implementation assigned to the Integrity Institute of Malaysia (IIM). The IIM is also in charge of holding workshops and seminars focused on anti-corruption efforts for both businesses and the general public. Additionally, Malaysia features an online complaint system named the Public Complaints Bureau, where citizens can file grievances against governmental departments.

In 2004, the police commission was created to address the prevalent issue of police corruption. Their primary objectives involve reducing crime, eliminating corruption, and monitoring human rights. The website called Malaysian Viewpoints is dedicated to providing information about transparency-related issues in Malaysia. It also offers views on prominent instances of corruption in the nation.

The Malaysian Society for Transparency and Integrity and the Movement for Democracy and Anti-corruption are the two most prominent Non Government Organizations in Malaysia. The former conducts the National integrity award ceremony, advocates for easy access to information, and aims to reform the legal anti-corruption framework. The latter engages in campaigns to raise awareness about anti-corruption issues. Conducting international business in Malaysia requires extensive knowledge about corruption as it affects many facets of the nation, including the legal system, political system, and labor unions. Despite citizens' awareness of corruption's economic benefits, they may not realize that this comes at a cost of international competitiveness and development.

Fortunately, Canada has numerous regulations to deter widespread corruption and promote international business. Malaysia's recent change in government after half a

century is a positive stride forward. If their anti-corruption efforts succeed, conducting business with foreigners will become more appealing in the future. Source: http://www.iiu.

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