US ban on FGV products has little impact on industry, says minister

US ban on FGV products has little impact on industry, says minister

Khairuddin Aman Razali says the country's import of palm oil is negligible.

US Customs and Border Protection has blocked the import of palm oil products from FGV over forced labour concerns.
PETALING JAYA:
The US ban on FGV Holdings Bhd’s palm oil products since Oct 1 is not likely to have a lasting impact on the sector, Plantation Industries and Commodities Minister Khairuddin Aman Razali said today.

He told the Dewan Rakyat that FGV only exported about 40 tonnes of palm oil valued at about RM120,000 to the US a year, and “if we see the numbers and the overall export of three million tonnes by FGV, the US imports in 2019 are only valued at 0.0013%”.

“Therefore, the ban imposed on the Malaysian products by the US does not significantly affect the sector at this point in time,” he said.

Jalaluddin Alias (BN-Jelebu) had asked about the extent of the US government’s ban against FGV on Malaysia’s palm oil product imports for 2020.

On Oct 1, US Customs and Border Protection (CBP) blocked the import of palm oil products from FGV over forced labour concerns. CBP had cited physical and sexual abuse, debt bondage and abusive conditions as reasons for the ban.

Following that, shipments from FGV and its subsidiaries were detained at all ports of entry in the US from Oct 7.

Malaysia is the world’s second-largest producer of palm oil after Indonesia.

FGV said all the issues cited in CBP’s decision for the ban had been the subject of public discourse since 2015.

It also said it had taken measures to correct the situation and that it did not tolerate any form of human rights infringements or criminal offence in its operations.

Meanwhile, Khairuddin said Malaysia had postponed taking in any more foreign workers to prevent the spread of Covid-19 since June 4.

He said Putrajaya hoped the suspension would see more Malaysians securing jobs in the industry, which would strengthen the plantation sector’s contribution to the economy.

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