10 Sep 2021
Share prices of Malaysian gloves manufacturer spikes 10% after US customs agency’s nod
Shah Alam, Malaysia – Top Glove Corp. Bhd has been allowed to resume exporting and selling gloves to the US following a recent decision by the US customs and border protection agency (CBP).
In a 9 Sept statement, CBP said it had determined, based upon additional information, that Top Glove’s merchandise no longer violated labour rights and did not involve “forced labour”.
As a result, effective 10 Sept, Top Glove has been allowed to resume shipping products, made in Malaysia, to the US.
The CBP placed a detention order on Top Glove products in July last year for the mishandling of migrant labour force.
Over the past year, the Malaysian company has taken a series of measures to address the issue, including offering a renumeration package of RM136 million (€28 million) to the affected workers.
Top Glove’s stock prices opened nearly 10% higher at RM3.70 in Bursa Malaysia this morning after the announcement of the CBP decision.
By 0700 gmt (noon market break) share prices had pared some of its gains, but remained 2.65% above the previous day’s level at RM3.49.
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