KUALA LUMPUR, Malaysia—The U.S. Customs and Border Protection Agency has placed a detention order on disposable gloves manufactured by two Top Glove subsidiaries for the suspected mishandling of a migrant labor force.
In a July 16 filing to the Kuala Lumpur Stock Exchange, Top Glove confirmed the order was placed on Top Glove Sdn. Bhd. and TG Medical Sdn. Bhd. for issues "related to foreign labor, which have already (been) resolved save for one."
According to Top Glove, the issue specifically involves recruitment fees paid by foreign workers to employment agents.
The Malaysian glove maker said it has been bearing all recruitment fees since January 2019 and is currently working on one outstanding issue with regard to retroactive payment of recruitment fees paid by its workers to agents prior to January 2019.
"Over the past few months, we have been working on this issue, which involves extensive tracing, to establish the correct amount to be paid back to our workers, on behalf of the previous agents," the company said in the filing.
Top Glove estimates the total amount to be about $4.7 million to $11.7 million.
"We are reaching out to the CBP through our office in the U.S., customers and consultants, to understand the issue," the company said.
Top Glove expects to resolve the matter within two weeks.