Top Glove: Independent consultant found no systemic forced labor within the group


KUALA LUMPUR (March 9): Top Glove Corp Bhd said an independent consultant found no systemic forced labor within the group as of January.

The glove maker appointed the consultant to verify the corrective action plans it had implemented to eliminate the presence of indicators of forced labor from its practices, Top Glove executive director Lim Cheong Guan said.

Top Glove has submitted corrective action plans for U.S. Customs and Border Protection (CBP) review and approval, Lim said at a virtual press conference today.

He added that the group is following CBP closely and is working on an early resolution and revocation of the non-disclosure order imposed by the US agency in July of last year on Top Glove affiliates, Top Glove. Sdn Bhd and TG Medical Sdn Bhd following allegations of forced labor.

Meanwhile, Lim said Top Glove also complied with the Workers’ Housing and Equipment Minimum Standards Act (Act 446) in February.

The amendment to the law came into effect in September last year after the government extended the application to all employment sectors. Prior to that, Law 446 was limited to the plantation and mining sectors.

Lim said that Top Glove has submitted its application for an accommodation certificate for buildings used as accommodation for its workers following the relocation of its workers to other accommodation for the workers.

Top Glove was charged with breaking Law 446 in December last year by the Human Resources Department.

The main offense the group allegedly committed was failing to apply for an accommodation certificate from the Department of Labor of Peninsular Malaysia (JTKSM) under Section 24D of the Act, which led to the discovery of other infractions, including dense and uncomfortable housing and lack of adequate ventilation.

Top Glove sees better performance in 2HFY21

Meanwhile, Top Glove expects better financial performance in the second half of fiscal 2021 (2HFY21) ending August 31, 2021, supported by additional new capacity with higher utilization amid demand for gloves. stronger.

Group executive chairman Tan Sri Dr Lim Wee Chai expects sales volume to grow 10-15% quarter-on-quarter in the third quarter of fiscal 21 (3QFY21) ending May 31 2021, given that its factories are operating at full capacity.

Optimism is also fueled by falling raw material costs. Nitrile gloves, which represent 44% of the group’s sales volume, have seen their input costs fall by 5% since January.

Top Glove plans to have an annual production capacity of 111 billion gloves by the end of December 2021 as the group increases the capacity for the year by 18 billion pieces.

Earlier today, Top Glove reported that its net profit for the 2QFY21 fiscal year ended February 28, 2021 increased 20.76% to RM 2.87 billion, from RM 2.38 billion in the previous quarter. . Revenue increased 12.74% to a record RM 5.37 billion from RM 4.76 billion in 1QFY21.

Six-month cumulative net profit increased 22 times to RM 5.23 billion, from RM 227.11 million a year ago, while cumulative income tripled to RM 10.12 billion. of RM against 2.44 billion RM.

Read also:
Top Glove Second Quarter Net Profit Increases 21% QoY to New Record High of RM2.87 billion
Top Glove targets May or June for dual primary listing in HK
Top Glove net profit to remain strong in 2TFY21, analysts say

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