KUALA LUMPUR – Top Glove Corporation Bhd has viewed the delay in its Hong Kong listing stemming from the import ban imposed by United States Customs and Border Protection (CBP) as only a temporary hurdle.
“The CBP (import ban) that has caused us a delay in the Hong Kong listing is just a temporary issue... we are talking about just a few more months,” founder and executive chairman Tan Sri Lim Wee Chai told a virtual briefing on the company’s third-quarter results today.
“We see that listing in Hong Kong will create long-term benefits, such as upgrading the standard of gloves, and the branding and value (of the company).”
It was reported that the firm’s plan to list in Hong Kong has been delayed as it seeks to resolve the CBP import ban on its products.
In March, CBP told ports in the US to seize Top Glove’s goods after having barred imports last July, citing evidence of forced-labour practices at the company’s production facilities across Malaysia.
In the same month, Lim said the glovemaker should be listed on the Stock Exchange of Hong Kong Ltd by May or June.
Asked when the import ban will be lifted, managing director Datuk Lee Kim Meow said there was no fixed timeline given to the company.
“But we have tried our best, and I hope it can be lifted soon.”
Lim emphasised that all 11 International Labour Organisation indicators of forced labour have been resolved.
“We have done our part. Now, we just wait for them to verify the payment and remediation to the workers.”
Responding to an analyst’s take that the US has reduced glove purchases compared with last year after hospitals said they have enough supply, Lee said he is of the opinion that the government there will remain alert, and there is a need for it to stockpile the essential item.
“Western governments were caught by surprise when the pandemic broke out early last year.
“Now, given that the number of new cases has been stabilising, it would be a good time for them to look at stockpiling the item.
“This is because experts believe the virus will still be around for a while, albeit on a much smaller scale.”
Presentation slides showed that the sales volume in Northern America shrank 68% quarter-on-quarter in Q3, with the sales contribution from the region also sliding to 8% from 23% over the same period. – Bernama, June 9, 2021
