MALAYSIA/THAILAND: Possible effects of tighter rules for migrant workers

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Fears of international transmission are likely to cause both countries to tighten rules on foreign worker flows and working conditions. Short-term effects could include production disruptions that become more pronounced as economic activities pick up, as well as reputational risks for firms if the new rules are implemented unevenly. Longer-term, should these measures take root, more lower-cost manufacturers could see an increase in production costs and consequently a greater incentive to move to neighboring countries. Apprehensive that international transmission could result
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