Malaysia to investigate Dyson decision to cut ATA ties

Malaysia said on Friday it will investigate British home appliance maker Dyson's decision to sever ties with ATA IMS over the Malaysian supplier's labour practices.

Dyson told Reuters on Thursday that it was ending its contract with ATA after an audit of the company's labour practices and allegations by a whistleblower.

Malaysia's Human Resources Minister M Saravanan said the government wanted to hear the reasons from both parties.

"I am informed that Dyson did not want to continue the contract due to (a) worker shortage. There are two different stories," Saravanan told reporters.

Malaysia has faced scrutiny over claims that migrant workers are subjected to abusive working and living conditions, while ATA is already being investigated by the United States over forced labour allegations.

Saravanan said he has received complaints on the use of forced labour in Malaysia, specifically forcing workers into excessive hours due to labour shortages.