Fast food giant McDonald's said it has dropped a labour supply agency in Malaysia after claims emerged that it was underpaying its migrant workers and housing them in appalling conditions.

An investigation by British newspaper the Guardian said the agency supplying workers to McDonald's was withholding their salaries, which were as low as 75 U.S. cents an hour, underpaying promised wages, and confiscating their passports…

McDonald's said it has ended its contract with the agency, Human Connection HR, and pledged staff welfare is a "top priority", with companies globally under mounting pressure to ensure their supply chains are free of slavery and exploitation…

There was no suggestion of any wrongdoing by McDonald's. Human Connection HR said it will hold a meeting and issue a response soon…