Earlier this month, the company said there may be a possibility of the detention order being related to “foreign labour” issues with regard to retrospective payment of recruitment fees by its workers to agents before January 2019 without its knowledge.
See: Top Glove shares fall on detention order from US Customs and Border Protection
Malaysian authorities had also raided the glove manufacturer’s headquarters in Meru, Klang following allegations of a breach in movement control order rules and housing of foreign staff in cramped quarters, but cleared the company of imposing forced labour.
See: Malaysian Human Resources Ministry clears Top Glove of forced labour allegations
Top Glove said they have made “good progress” on the matter, and look forward to arriving at an agreement on remediation within the next month, upon which they plan to commence remediation payment immediately.
In addition, the company also revealed it has appointed an independent consultant to advise them on this matter, and said it will continue to provide updates on developments.
Shares of Top Glove closed at $8.45 on Thursday, down 9 cents or 1.05% lower than its previous close of $8.54.
