Kuala Lumpur - The US Customs and Border Protection Agency (CBP) has placed a detention order on disposable gloves manufactured by two Top Glove subsidiaries for the suspected mishandling of migrant labour force.
In a 16 July filing to the Kuala Lumpur Stock Exchange (KLSE), Top Glove confirmed that the order was placed on Top Glove Sdn Bhd and TG Medical Sdn Bhd for issues ‘related to foreign labour, which have already resolved save for one.’
According to Top Glove, the issue specifically involves recruitment fees paid by foreign workers to employment agents.
The Malaysian gloves maker said it has been bearing all recruitment fees since January 2019 and it is currently working on one outstanding issue with regard to retrospective payment of recruitment fees paid by its workers to agents prior to January 2019.
“Over the past few months, we have been working on this issue which involves extensive tracing, to establish the correct amount to be paid back to our workers, on behalf of the previous agents,” the company noted.
Top Glove estimates the total amount to be about RM20 million (€4.1 million) to RM50 million.
“We are reaching out to the CBP through our office in US, customers and consultants, to understand the issue,” the company said.
Top Glove expects to resolve the matter within two weeks.
Company shares prices on the KLSE took a 10% dip to MYR19.60 by the morning of 17 July, but had fully recovered by midday Kuala Lumpur time.