MALAYSIA said today it viewed US allegations of forced labour in palm oil plantations as an “old issue” but it was willing to take appropriate action if needed.
Last month, the US Customs and Border Protection (CBP) banned the imports of palm oil products from FGV Holdings on suspicion of forced labour in its manufacturing process, and Malaysia said it anticipated another plantation firm could be banned as well.
In a statement today, Plantation Industries and Commodities Minister Datuk Dr. Mohd Khairuddin Aman Razali said the country had already halted the recruitment of new foreign workers.
“Therefore, the issue of forced labour raised and reported by the US Department of Labour is an old issue and has been taken action by the industry,” he said.
“However, with the increasing incidents, the Ministry of Plantaion Industries and Commodities (MPIC) is ready to consider appropriate action to address the issue,” noted Mohd Khairuddin.
The world’s second largest palm oil producer has stopped the entry of new foreign workers from June until the end of the year as part of COVID-19 containment measures, but planters said it had exacerbated a long-standing labour shortage and impacted production.
Meanwhile, labour groups alleged that thousands of foreign workers employed by the industry remained subject to forced labour conditions.
Mohd Khairuddin remarked the government viewed the US allegations seriously and the two countries needed a fair platform to address the allegations that could affect bilateral trade.
“Undoubtedly, the US is an important market for Malaysian agricultural products which is one of the largest contributors to the country’s export earnings,” he said, adding that Malaysia exported RM14.1 bil worth of agricultural commodities to the US from January to August this year.
The US is Malaysia’s second largest agri-commodity trading partner, accounting for 15% of the nation’s exports during the first half of 2020, according to government data. – Oct 22, 2020, Reuters
