KUALA LUMPUR: The US Customs and Border Protection (CBP) has placed a detention order on disposable gloves manufactured by two of Top Glove Corp Bhd's subsidiaries, namely Top Glove Sdn Bhd and TG Medical Sdn Bhd.
The action is reportedly intended to halt importation of goods from companies suspected of using forced labour.
Confirming the news, Top Glove today said it was reaching out to the CBP to understand the issue better and work towards a speedy resolution to the matter within an estimated two weeks.
This is done through the glove producer's office in the US besides its customers and consultants.
"There is a possibility this may be related to foreign labour issues, which we have already resolved, save for one more issue with regard to retrospective payment of recruitment fees by our workers to agents prior to January 2019, without our knowledge.
"However, Top Glove has already been bearing all recruitment fees since January 2019 when our zero recruitment fee policy was implemented,' Top Glove said in a filing to Bursa Malaysia.
Top Glove, the world's largest rubber glove manufacturer, said over the past few months, it had been working on the issue which involved extensive tracing, to establish the correct amount to be paid back to its workers, on behalf of the previous agents.
"We estimate the total amount to be about RM20 million to RM50 million. We believe it is in the best interests of all parties to come to a solution expeditiously so that our disposable gloves can reach the parties that need (them) the most, during this Covid-19 time," it added.
The company said it would provide updates when there were further developments on the matter.
At midday break, Top Glove's share price, which has risen more than 350 per cent so far this year, eased 56 sen or 2.57 per cent to RM21.24 for a market capitalisation of RM60.74 billion.