KUALA LUMPUR – Sime Darby Plantation Bhd (SDP) may be the next plantation giant to have its imports banned by US Customs and Border Protection (CBP), sources told The Vibes.
This comes after SDP’s Bursa Malaysia peer, FGV Holdings Bhd, had its products blocked by CBP yesterday on allegations of forced labour.
FGV has denied the claims, and is in negotiations with the US agency.
Human Resources Minister Datuk Seri M. Saravanan told a press conference today that “another big (firm) in the plantation sector” would be caught in the CBP dragnet, but did not name the company.
The Vibes is made to understand that SDP will issue a statement on the matter.
SDP, the world’s largest palm oil company by land size, has been hit with calls for an import ban since July, following petitions against FGV last year.
Hong Kong-based anti-trafficking group Liberty Shared (LS), in an August 4 statement, said it found the presence of labour abuse on SDP estates after conducting interviews with workers and civil society, and scrutinising public disclosures, audit reports and sustainability initiatives.
LS said it submitted a petition to CBP on April 20 to block SDP exports.
In its immediate reply then, the plantation firm vowed to look into LS’ “serious allegations” of forced and child labour, saying the claims were against the group’s public commitments to responsible agriculture and human rights.
Malaysia is the world’s second-largest producer and exporter of palm oil, which is cheap, edible and found in a wide range of consumer goods, from chocolate to lipstick.
The sector is driven by more than 337,000 migrant workers from countries like Indonesia, India and Bangladesh hired to harvest palm fruits. Overseas hands make up 84% of the industry’s total workforce.
However, palm oil companies in the country have been battling criticism over their rampant clearing of tropical forests for new plantations and poor treatment of workers.
SDP’s shares today closed 5.15% lower at RM4.79, valuing the planter at RM32.98 billion. – The Vibes, October 1, 2020
