THE Malaysian Rubber Gloves Manufacturers Association (MARGMA) has clarified recent media news reports in relations to the loss incurred by Top Glove Corp Bhd in relation to the Withhold Release Order (WRO) imposed by the US’ Customs and Border Protection (CBP).
It said the sum of RM3.6 bil is an estimated loss in potential glove export revenue to be encountered by Malaysian glove manufacturers due to the WRO issue and not an actual financial loss of any single company.
“The sum of the estimated loss in potential glove export revenue was a cumulative sum made on a few affected companies, and based on a various assumption,” MARGMA pointed out. “MARGMA wishes to stand corrected on the above information.”
The association was clarifying on a Bernama report citing the Ministry of International Trade and Industry (MITI) yesterday (March 1) that the world’s largest glove maker (Top Glove) has incurred an estimated loss of RM3.6 bil during the 14-month WRO period from July 2020 till September 2021.
In its written parliamentary reply, MITI said the information was obtained from MARGMA.
Recall that CBP issued a WRO on Top Glove on July 15, 2020 over allegations of forced labour practices in its production process, including employee debt bondage, excessive overtime, violation of environmental conditions, workplace and accommodation facilities and detention of identification documents.
“However, the WRO restriction 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 for employees,” noted MITI.
The ministry said an engagement session was held on Feb 18 with the US embassy and MARGMA members to review and discuss actions to be taken by industry players to ensure WRO restrictions on Malaysian rubber glove companies could be lifted and avoided in the future.
“MITI is always committed to raise awareness and comply with current policies including those related to human rights among the country’s industry players and foreign investors,” the ministry pointed out.
“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.”
The Brightway Group comprising Brightway Holdings Sdn Bhd, Laglove (M) Sdn Bhd, and Biopro (M) Sdn Bhd were the latest Malaysian glove makers to be slapped with the WRO on Dec 20 last year after Smart Glove (Nov 5, 2021) and Supermax Corp Bhd alongside its three wholly-owned subsidiaries (Oct 20) for a slew of forced labour practices.
Apart from Top Glove, WRO was also issued against WRP Asia Pacific Sdn Bhd in September 2019, of which the ban was lifted in March 2020. – March 2, 2022
