Responding to the Withhold Release Order (WRO) issued by the US Customs and Border Protection (CBP), the plantation giant said that the allegations of such forced labour, even if true, would suggest a breach in the implementation of its internal policies.
It was reported yesterday that the CBP would detain palm oil and products containing palm oil produced by SDP and its subsidiaries, effective immediately, because of allegations of forced labour.
In a statement, SDP said: “It would be in the interest of all parties, especially our foreign workforce and women employees, if these matters are addressed expeditiously.”
It said the statement released by the CBP did not provide sufficient information for it to meaningfully address the allegations, and said it looks forward to receiving further details so the concerns raised by the CBP could be addressed.
“SDP is committed to combating forced labour and has implemented robust policies to protect workers’ rights. These efforts include the appointment of PricewaterhouseCoopers Consulting Associates on Oct 19 to assist us in our continuous improvement commitment.”
It was previously reported by Bernama that the plantation industries and commodities industry ministry had expressed regret and disapproval regarding the drastic action taken by the US government to bar the entry of palm oil by SDP, without giving the company an opportunity to defend itself.
The minister, Mohd Khairuddin Aman Razali, said that while the CBP had the right to issue a WRO on palm oil exported by any party to the country, he disagreed with the action being taken without allowing the company to prove if the claim was baseless.
He said the Donald Trump administration had once again blocked palm oil shipped to the US market without referring to the Malaysian government on the validity of the allegations of forced labour.
“This incident is not a surprise to the (Malaysian) government as similar action was previously taken against FGV Holdings Bhd (in September) based on the same claim that had been denied by the company,” the minister said in a statement today.
While Khairuddin acknowledged there had been an incident of forced and child labour in the country’s palm oil sector in the past, it was an isolated case, based on a survey done in 2018.
The findings were also forwarded to the US embassy in Kuala Lumpur early last month. He said the government had always reminded industry players to be more responsible and not be involved in issues that could hurt the country’s economy.
“If the allegations are true, the Malaysian government will take appropriate and firm action against any company involved in forced labour,” Khairuddin said.
According to the CBP, the issuance of the WRO against SDP’s products was based on information that “reasonably indicates” the presence of all 11 of the International Labour Organization’s forced labour indicators in SDP’s production process.