Top Glove reaffirms commitment to working with authorities to resolve workers' housing issue

Top Glove reaffirms commitment to working with authorities to resolve workers' housing issue
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KUALA LUMPUR (Nov 30): Top Glove Corp Bhd reaffirmed today its commitment to working with the authorities to resolve its workers’ housing issues in compliance with the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446) in Malaysia.

”We reaffirm our commitment to working with the authorities to resolve the matter of workers’ housing,” Top Glove said in an emailed statement to theedgemarkets.com today.

Top Glove did not elaborate.

Last Thursday, it was reported that the Department of Labour of Peninsular Malaysia on that day found a glove manufacturer in Ipoh, Perak to be in violation of the act.

It was reported that the department’s labour standards director Mohd Asri Abdul Wahab said several offences were revealed during the raid on the company’s foreign worker hostel.

The news report, however, did not indicate the name of the company. 

“Among the offences were the company’s failure to obtain an accommodation acknowledgement letter from our department, overcrowding and unsanitary conditions,” Mohd Asri was quoted as telling reporters when met outside the hostel then.

Last Friday, Top Glove confirmed in a statement that the department visited the company’s Ipoh factory workers’ accommodations on the previous day.

"With regard to a visit by the Department of Labour of Peninsular Malaysia to our Ipoh factory workers’ accommodations yesterday (Thursday), we wish to inform that Top Glove will be extending its fullest cooperation to the relevant authorities.

"Top Glove wishes to clarify that we are in the process of improving the living quarters of our workers to meet the requirements under the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446). Part of our efforts towards this for our workers in Ipoh is the rental of eight units of new shoplot hostels. 

"Six have been occupied, while another two are in the process of being set up for workers. The exercise to move workers in is ongoing and expected to be completed by early December,” Top Glove said.

According to Top Glove, the exercise to further improve the company’s workers’ living conditions began in July 2020 and is expected to be completed by December 2020. 

Efforts to source for more accommodations and improve existing worker accommodations are ongoing, the company said.

As of yesterday, It was understood that the department had not notified Top Glove of any follow-up action by the authorities after the Ipoh factory workers’ accommodation visit last Thursday.

Top Glove said yesterday it "will continue to engage with [the] authorities on this matter".

Top Glove’s statement followed the Malaysian government’s move to enforce the act since last Thursday.

News reports quoted Senior Minister (Security Cluster) Datuk Seri Ismail Sabri Yaakob as saying last Wednesday that employers who flout the Ministry of Human Resources’ (MoHR) regulations would be fined RM50,000 per worker.

On Bursa Malaysia, Top Glove’s share price had risen four sen or 0.57% to RM7.03 as at the time of writing today, with a market value of about RM57.65 billion, based on the company’s latest-reported number of issued shares at around 8.2 billion units.

The stock saw some six million shares traded.

Chong Jin Hun