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Malaysia's Top Glove factory raided, no evidence of forced labour found - HR ministry

Credit: REUTERS/Bazuki Muhammad

Malaysian authorities found no evidence of forced labour at a factory of world's largest glove maker Top Glove Corporation following a raid last week, the human resources ministry said on Tuesday.

KUALA LUMPUR, July 21 (Reuters) - Malaysian authorities found no evidence of forced labour at a factory of world's largest glove maker Top Glove Corporation TPGC.KL following a raid last week, the human resources ministry said on Tuesday.

Two units of Top Glove TPGC.KL were last week barred by U.S. Customs, citing forced labour issues, and the company said it will engage with U.S. authorities to work towards a speedy resolution.

The ministry said the raid was carried out two days before the U.S. decision. It found that the company had flouted movement control orders such as social distancing at the workplace and had cramped accommodation for workers.

"(The ministry) is aware that the impact of the U.S. Customs detention order will affect the credibility and image of the country internationally and influence foreign investor confidence following the allegations of forced labour," it said.

It said it has met with Top Glove and the country's rubber glove association to understand the action taken against Top Glove.

The ministry warned employers from all sectors to abide by labour laws relating to the conditions their workers were kept in.

In a separate statement, Top Glove said it has continuously upheld good labour practices and complied with requirements of labour laws and best practices.

To further dispel allegations of forced labour, the company said it was accorded an "A" rating in a social audit conducted in May by a global business association for open and sustainable trade, Amfori.

"The recent Amfori audit and earlier third-party audits which garnered good ratings, provide independent verification that there is no element of forced labour in our manufacturing facilities," human resources General Manager William Yap said.

(Reporting by Liz Lee, editing by Louise Heavens)

((liz.lee@thomsonreuters.com; +60323338039; +60124276189 (mobile);))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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