IN THE SPIRIT OF OPENNESS, TRANSPARENCY AND COLLABORATION, TOP GLOVE POSITIVELY STEPS UP TO MORE AFFIRMATIVE EFFORTS TOWARDS THE CONTINUAL IMPROVEMENT OF WORKERS’ WELFARE

Shah Alam, Thursday, 8 April 2021 Top Glove reaffirms its commitment towards continuously improving the welfare of its employees while steadily increasing global demand for its medical, cleaning and household gloves.

During a briefing today to provide updates on the glove market, ongoing improvements to its workers’ accommodation and engagement with the U.S. Customs and Border Protection (CBP), the Company advised that it continues to engage with the CBP towards completing additional rectification and verification work immediately.

During the briefing, Top Glove’s Founder and Executive Chairman, Tan Sri Dr Lim Wee Chai, said: “We are very pleased to be providing our updates on these very important and timely issues. We are also looking forward to collaborating with Independent Migrant Worker Rights Specialist, Mr Andy Hall, as we work together to move to become a leading manufacturer with the best possible Environmental Social and Governance (ESG) practices across our industry.”

Top Glove’s Managing Director, Dato’ Lee Kim Meow, said: “We have clarified with the CBP and note there are no new additional issues on forced labour that have been discovered or added. What is required, however, is some additional rectification work on the existing findings, which is already in progress. We aim to quickly complete this additional rectification work in a comprehensive manner. We will also continue to abide by the requirements of the Withhold Release Order (WRO) in the meantime,” Dato’ Lee continued.

Migrant Rights Specialist, Mr Andy Hall, said: “It is time to acknowledge the increasingly positive momentum forward shown recently by Top Glove’s leadership to effectively remediate remaining forced labour indicators from the company’s direct operations and supply chain. We must now begin to evaluate critically CBP’s approach towards the Company and question its ongoing reluctance to withdraw forced labour trade related finding at a time when other leading companies in Malaysia are doing far less than Top Glove to ensure the welfare of their workers, yet they are still not similarly subject to CBP trade enforcement action. I look forward to working together with them to ensure migrant worker’s rights and worker welfare generally are continually prioritised within the Company’s direct operations and its vast supply chain.” 

Last Friday; 2 April 2021, Top Glove made a lump sum/final balance sum remediation payment with respect to recruitment fees previously paid by its migrant workers to agents or other parties, which the company had committed to remediate as announced per an earlier statement dated 10 August 2020.

Top Glove’s initiative to remediate its workers extends to all those who have joined the Company on or after 1 January 2019, including workers who left the Company’s employment. Since January 2019, Top Glove has operated based on a Zero Cost Recruitment Policy, under which the Company bears all recruitment related fees for its migrant workers.

During the Briefing, Top Glove also reiterated its commitment towards continually improving its workers’ accommodations, in accordance to the Act 446: Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990.

Top Glove will continue to work with the relevant Ministry and Government agencies, which are looking into strengthening existing regulation and related standard operating procedures for the manufacturing and construction sectors, to continuously enhance the workplace and living conditions of workers in Malaysia.

To date, the Company relocated some workers to alternative accommodations in December 2020; and has submitted applications for Certificate for Accommodation (CFA). The approval and issuance of the CFA by the government is being done progressively. Top Glove has embarked on a substantial investment programme to significantly improve the living quarters of our workers nationwide.

Top Glove also restated its strong commitment during the briefing to the welfare, health, and safety of its workforce, as it aims to be a leading responsible company in this regard, in Malaysia and worldwide.

The Company also observed that the glove industry outlook continues to be promising, driven by demand from developed counties where usage is high, as well as strong growth opportunities in emerging countries with large populations where usage is relatively low but on the rise.

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