Merah (1937) is a work of Chinese Malay literature that explores issues of communism through the story of a labour strike in Kudus. There have been different opinions regarding communism, and such diversity is embodied in different works. Among Peranakan Chinese themselves at the time, interest in communism was rather lukewarm. Amidst this condition, Liem Khing Hoo wrote a communism-related novel, and this signifies the writing‘s uniqueness. This research examined how Liem Khing Hoo’s particular worldview of communism was applied and emerged within the literary work. Using the sociology of literature approach espoused in Lucien Goldmann’s Genetic Structuralism, it was discovered that this literary work rejected communism. In addition, there were also no signs of efforts to eradicate class domination as the text strongly advocated for the humane treatment of labourers. Through this research, it is proven that Liem positions himself on the side of labour without aligning with communism and its mission of class eradication. Liem’s rejection of communist ideology is homologous to the worldview of his ethnic group, Peranakan Chinese, implying that the labour movement does not perpetually contradict capitalism.