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Top Glove Corp Bhd's United States (US) counsels are in the midst of liaising with representatives from the US Customs and Border Protection (CBP) to obtain clarity on the latest import ban order issued by CBP on all disposable gloves originating from Top Glove factories in Malaysia.
The CBP on Monday directed its personnel at all US ports of entry to begin seizing disposable gloves produced by Top Glove, as it believed the world's largest rubber glove maker uses forced labour in the production of disposable gloves.
In a filing with Bursa Malaysia today, Top Glove said at this juncture, the company was unable to ascertain the quantum of financial and operational impacts arising from the seizure of the goods.
"The company will take all necessary steps to address the (forced labour) issue and shall make the necessary announcement as appropriate when there are further developments," it said.
In July last year, the CBP issued an order that barred imports from two of Top Glove's subsidiaries on suspicion of labour abuses.
In response, the company had submitted a report prepared by an appointed independent international consultant to assess its trade and labour practices.
In its published statement on March 9, 2021, the said consultant reported that further progress had been made with regard to the forced labour indicators and considering Top Glove's ongoing actions, the findings do not amount to systemic forced labour.
At lunch break, shares of Top Glove dipped 4.36 percent to RM4.83 with 40.44 million shares transacted.