Shares in FGV Holdings Bhd dropped by 6.95 percent today, following the detention order on its palm oil issued by the US Customs and Border Protection (CBP).
At 10.11am, its shares fell eight sen to RM1.07 with 14.04 million shares transacted.
The counters opened at RM1.13 compared with yesterday’s close of RM1.15.
The CBP said effective September 30, 2020, all US ports would detain palm oil and palm oil products made by the company, its unit and its joint ventures.
Its office of trade directed the issuance of a withhold-release order against palm oil and palm oil products made by FGV based on information of alleged use of forced labour.
The order, according to CBP, was the result of a year-long investigation that allegedly revealed forced labour indicators, including abuse of vulnerability, deception, restriction of movement and isolation.
In its response to CPB’s claim, FGV said it has been taking concrete steps over the past several years in demonstrating its commitment to respect human rights and to uphold labour standards.
“As mentioned in our statement dated September 26, 2020, various efforts have been carried out by FGV in honouring such commitment, including continue to strengthen procedures and processes in the recruitment of migrant workers and adopted guidelines and procedures for the responsible recruitment of migrant workers in 2019 in accordance with international standards.
“FGV is also not involved in any recruitment or employment of refugees. And in fulfilling the rights of workers to adequate housing, we have over the past three years, invested approximately RM350 million to upgrade housing facilities for our workers by constructing new residences in our plantations all over the country,” it said in a statement today.
Meanwhile, the Human Resources Ministry will investigate claims of alleged forced labour in FGV Holding Bhd’s production process, said its minister, M Saravanan.
The ministry is concerned over the US ban on FGV Holding’s products over such allegations, he said.
“At the moment, the country depends very much on our exports, of which palm oil is among these that increase our revenue.
“It’s not good for our country,” he said today.
His officers are checking the situation on the ground in FGV Holdings’ plantations, he said.
“This issue mainly is in the Sabah and Sarawak plantation sector. The workers there and their children are supposedly involved.
“But it is too early. Let me check with my officers on the ground to get the full data on the issue.”
Saravanan also said the ministry would be working closely with the home affairs ministry.
He added that the labour issue was one of the main reasons he was pushing for amendments to the Workers’ Minimum Standards of Housing and Amenities Act 1990.
“It will address all the issues, but some unions are against it,” he said.
He revealed that the US ambassador had informed him of the pending action by the US CBP, but he didn’t expect it to happen so soon.
“I was already told about this a couple of days ago by the ambassador, but didn’t expect it to happen so soon.
“Meanwhile, I was told that another big plantation firm will be banned soon,” he said.
However, Saravanan declined to name the planter.