Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Racing to reverse U.S. ban, Malaysia's Top Glove improves workers' housing

Published 08/11/2020, 10:46 AM
Updated 08/11/2020, 10:51 AM
© Reuters. Top Glove Managing Director Lee Kim Meow speaks during an interview with Reuters, at Top Glove headquarters in Shah Alam

By Liz Lee

KUALA LUMPUR (Reuters) - Malaysia's Top Glove Corp (KL:TPGC) is working rapidly to resolve this month issues that prompted a U.S. Customs import ban, including improving its migrant workers' living conditions, its managing director said on Tuesday.

In engagements with the U.S. Customs and Border Protection (CBP) last week, the world's largest medical glove maker said the standard of workers' accommodation was one of two issues highlighted.

CBP placed a detention order on imports from two subsidiaries of Top Glove last month, an action the authority takes on firms suspected of using forced labour.

"They wanted us to take care of the living quarters of the foreign workers," Managing Director Lee Kim Meow told Reuters.

He said repair and upgrade work was taking place at accommodation the CBP had singled out and other migrant workers' housing would be improved as required.

Lee said the company was also seeking to integrate technology to enable workers to raise issues affecting their living conditions as problems with workers' quarters far from the head office had been overlooked.

The other issue CBP identified is referred to as remediation, or paying back workers fees they paid to employment agents to get their jobs.

Top Glove made its first remediation payment to migrant workers who joined before 2019 on Monday.

Lee said Top Glove will pay the estimated total of 53 million ringgit ($12.65 million) in remediation, covering around 10,000 foreign workers from Bangladesh, Nepal, Indonesia, Myanmar and Cambodia, over 12 months.

Top Glove hires about 12,000 foreign workers in total.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Prompted by the COVID-19 pandemic, Top Glove has started producing face masks and also plans to manufacture medical gowns and cleaning products, such as sanitisers and washing liquids. It hopes to gain approvals to export its masks in two months, and start making medical gowns next year.

Lee said the company plans to be a "one-stop infection control centre".

($1 = 4.1900 ringgit)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.