KUALA LUMPUR – Sime Darby Plantation Bhd (SDP) shares fell 2.13% in early trade today due to the ban imposed by the United States Customs and Border Protection (CBP) on its products over allegations of forced labour in the production process.
As at 9.56am, SDP lost 11 sen to RM5.06, with 70,400 shares traded.
CBP had issued a “withhold release order” (WRO) on palm oil and its related goods produced by SDP and its subsidiaries, joint ventures and affiliated entities, allowing the agency to detain shipments based on suspicion of the use of forced labour.
In a statement yesterday, CBP said the issuance of the WRO against SDP was based on information that reasonably indicated the presence of all 11 forced labour indicators by the International Labour Organisation in the company’s production process.
In September, CBP issued a separate WRO against another Malaysian palm oil producer, FGV Holdings Bhd. – Bernama, December 31, 2020
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