Malaysian glovemakers suffered RM3.6b export revenue loss during US import ban

THE Malaysian Rubber Gloves Manufacturers Association (Margma) has clarified an earlier response in Parliament that there was a potential glove export revenue loss of RM3.6 billion (S$1.2 billion) for all Malaysian glove manufacturers over the span of the Withhold Release Order (WRO) imposed by the US Customs and Border Protection (CBP), instead of just Top Glove.

In a written parliamentary reply on Mar 1, Malaysia's Ministry of International Trade and Industry (MITI) said Top Glove Corporation alone had booked a loss of RM3.6 billion over the WRO period. The ministry had attributed this estimated figure to information from Margma.

In a Mar 2 press statement, Margma clarified this, saying that this amount refers to the estimated loss in "potential glove export revenue" incurred by Malaysian glove manufacturers.

"The sum of the estimated loss in potential glove export revenue was a cumulative sum made on a few affected companies," said the organisation, adding that the sum was based on various assumptions.

The CBP had slapped Top Glove with a WRO in July 2020 based on "reasonable but not conclusive information" that multiple forced labour indicators exist in the company's production process.

These indicators included the likes of debt bondage, excessive overtime, abusive working and living conditions, as well as the retention of identity documents.

In March 2021, disposable gloves manufactured in Malaysia by Top Glove arriving at all ports of entry in the US were seized under the CBP's direction.

The WRO was lifted on Sept 10, 2021, after the authorities were satisfied with the actions taken by Top Glove - including payment compensation to workers, as well as improving workplace facilities and employee accommodation.

Brightway Group and YTY Group were among the other Malaysian glovemakers that received import bans from the CBP.

MITI said in the parliamentary reply that it held an engagement session on Feb 18 with the US Embassy and Margma members to review and discuss the actions that industry players should take to ensure that WRO restrictions on Malaysian rubber glove companies can be avoided in the future.

The ministry said it will continue to work with stakeholders to prevent forced labour practices in the industry, and improve awareness of good employee practices, adding that it is committed to raising awareness and compliance with current policies, including those related to human rights, among national industry players and foreign investors.

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