Top Glove Corporation Bhd
(Company No. 199801018294 [474423-X])
Top Glove Media Contact:
+603-3362 3098 Ext 2228
+6016 668 8336
+603-3362 3098 Ext 2234
+6012 265 8973
PRESS RELEASEFor Immediate Release
TOP GLOVE PROVIDES CLARIFICATION WITH REGARDS TO RE-ELECTION OF BOARD MEMBERS
Shah Alam, Friday, 8 January 2021 In response to some shareholders’ vote against the re-election of its Independent Directors, Top Glove wishes to provide the following clarification.
The COVID-19 is a true crisis and a unique challenge for nearly every Company today; with the impact of supply chains, the move to remote working, and the list of operating challenges.
Top Glove concurs that how its Board functions at this time will be a critical factor in the Group’s continued implementation and improvement of its stringent remedial actions on safeguarding the safety, health, and wellbeing of its employees.
Collectively, our Independent Directors (ID) have served a total of 35 years on the Board and individually, an average of 6 years. Additionally, each ID is also part of an average of four (4) committees, including the Board Risk Management Committee (BRMC), the Board Audit Committee (BAC), the Board Nomination and Remuneration Committee (BNRC), and the Board Sustainability Committee (BSC).
The IDs, through the Independent Directors Committee (IDC), meet regularly to discuss various issues related to the pandemic, the US Customs Border Protection, the risk of global non- regulatory compliance, shareholders' activism, and EESG (Economic, Environment, Social and Governance) matters, among others.
The Group applauds their commitment and dedication to their duties.
Top Glove’s ongoing labour management efforts include:
a) Improvements to worker accommodations:
- The Group is renting existing hostels managed by Westlite, to house 2,000 workers. Relocation of workers to the hostel was completed at end December 2020.
- Among the facilities available / being set up at the hostel are a canteen (halal), a mini mart, a self-service laundry, a game room, and a prayer room.
- This being the CMCO period, the Group is also providing its workers with subsidised meals at the hostel’s canteen.
- The Group has reserved approximately RM100 million for workers’ facilities and accommodations, which includes building mega hostels in Klang and Banting in Selangor, with a combined capacity of 7,300 pax. These hostels will be fully equipped with a suite of amenities and facilities.
- While the Group has yet to obtain possession of these accommodations, which have a CAPEX of around RM70 million, all relevant agreements have been signed with the first block of the hostels expected to be ready by 2021.
- The mega hostel in Banting is part of the Group’s Innovation Campus, which incorporates factories, warehouses, a research and development centre, and a commendable workers’ accommodation that is expected to be completed in 2021. All of Top Glove’s future factories will be modelled after the Innovation Campus.
- The Group has purchased a Kenangan Meru apartment block in Klang, with a capacity to house 2,700 workers. The apartment block, which is expected to be completed by early 2022, has a CAPEX of around RM95 million.
- The Group is also building and acquiring additional houses, apartments, and hostels in other states, amounting to approximately RM30 million.
b) Stricter adherence to SOPs in factories, which have reopened on 20 December 2020:
The Company assures all our shareholders and stakeholders that its Board will continue to take on a critical role in directing and overseeing the Group while supporting its Executive Leadership, preserving appropriate separation from the Management, and sharing the burden of sustainable and ethical implementation of policies, benefiting its 21,000-strong workforce.
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About Top Glove Corporation Bhd
Top Glove Corporation Bhd is listed on the Bursa Malaysia Stock Exchange Main Board and Singapore Exchange Mainboard. It is also one of the component stocks of the MSCI Global Standard Index, FTSE Bursa Malaysia KLCI Index, FBM Top 100 Index, FBM Emas Index, FBM Hijrah Syariah Index, FBM Emas Syariah Index, FTSE4Good Bursa Malaysia Index and the Dow Jones Sustainability Indices (DJSI) for Emerging Markets. Top Glove is currently the world’s largest manufacturer of gloves with an established corporate culture and good business direction of producing consistently high quality, cost efficient gloves. Top Glove has over 2,000 customers worldwide and exports to more than 195 countries.
Summary of key information:
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