Miti says Top Glove lost RM3.6bil after US ban

Miti says Top Glove lost RM3.6bil after US ban

Ministry says glove makers have taken action to ensure that US curbs can be avoided in the future.

The US Customs and Border Protection agency imposed curbs on the import of Top Glove products from July 2020 to September last year.
KUALA LUMPUR:
The international trade and industry ministry (Miti) said Top Glove Corp Bhd incurred a loss of about RM3.6 billion during the period of the “Withhold Release Order” (WRO) imposed by the US Customs and Border Protection (CBP) agency.

In a written reply in Parliament today, it said the information was obtained from the Malaysian Rubber Glove Manufacturers Association (Margma).

On July 15, 2020, the CBP issued a WRO on Top Glove after allegations of forced labour practices in the production process, including employee debt bondage, excessive overtime, violation of environmental conditions, workplace and accommodation facilities and detention of identification documents.

“However, the WRO was lifted on Sept 10, 2021 after CBP was satisfied with the evidence and actions taken by Top Glove, including the payment of compensation to employees and improving workplace facilities and accommodation,” Miti said.

The ministry said an engagement session was held on Feb 18 with the US embassy and association members to review and discuss actions to be taken by industry players to ensure that WRO restrictions on Malaysian rubber glove companies could be avoided in the future.

“Miti is always committed to raising awareness and complying with current policies, including those related to human rights, among industry players and foreign investors.

“Miti will continue to work with stakeholders, especially the industry, in inculcating ethical values and regulatory compliance to prevent forced labour practices and improve awareness on good employee practices by the industry,” it said.

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