Rm3 6b Loss From Several Firms Not Just Top Glove Group


 


The RM3.6 billion figure touted by the International Trade and Industry Ministry (Miti) yesterday as losses suffered by Top Glove due to restrictions imposed by the US is erroneous.
According to the Malaysian Rubber Glove Manufacturers Association (Margma) - which supplied Miti with the figure - the number is calculated from estimated losses by several glovemakers due to withhold release orders (WRO) issued by the US.
It did not refer to the actual financial losses of a 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 various assumptions.
“Margma wishes to stand corrected on the above information,” it clarified in a statement today.
Yesterday, Miti told Parliament in a written reply that “According to information provided by Margma, the estimated losses suffered by Top Glove during the WRO period imposed by the US Customs and Border Protection (CBP) is RM3.6 billion”.
The CBP imposed the WRO beginning July 15, 2020, on allegations of forced labour practices such as debt bondage.
In May that year, Malaysiakini also exposed Top Glove’s alleged attempts to skirt around labour laws as the Covid-19 pandemic drove demand for its products.
The WRO meant the company could not import its products into the US. The CBP subsequently instructed US ports to seize Top Glove’s products.
The WRO was lifted on Sept 10 last year once the CBP was satisfied with Top Glove’s remedial actions, such as by making remediation payments to its workers and improving the living conditions at their hostels.
Apart from Top Glove, other Malaysian glovemakers slapped with WROs due to allegations of poor labour practices in recent years include Supermax, Brightway Group, and WRP. - Mkini


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