Sime Darby Plantation Bhd is the latest Malaysian company to be penalised by US authorities over allegations of employing forced labour, Free Malaysia Today reports.

The US Customs and Border Protection (CBP) has issued a withhold release order for  palm oil and products containing palm oil produced by the company after finding its production process to have  “all 11 of the International Labour Organisation’s forced labour indicators”.

“This withhold release order demonstrates how essential it is for Americans to research the origins of the everyday products that they purchase,” said CBP acting commissioner Mark A. Morgan in statement. 

“American consumers can help end modern slavery by choosing to buy products they know are ethically and humanely sourced.”

Oil palm plantation company FGV Holdings Bhd and glove manufacturer Top Glove are among the Malaysian firms that have been accused of exploiting their workers by the CBP.

Those slapped with a withhold release order may either reroute their shipments and sell their products elsewhere or try to persuade the CBP to change its mind by providing proof the goods were not manufactured in slave-like conditions.

Sime Darby in September issued a statement denying exploiting prisoners working on its plantations, after human rights groups raised concerns about the employment of forced labour in the Prisons Department’s corporate smart internship programme held in collaboration with industry.

UK newspaper The Guardian published the allegations of labour rights advocates that Malaysia’s scheme to employ prisoners on palm oil estates may constitute “institutionalised forced labour”.

The agricultural giant had said that it consistently upheld the fundamental human rights of its prison workers, which it calls parolees.

“Sime Darby does not tolerate any form of exploitation. Our commitment to human rights is anchored in our Human Rights Charter (established since 2017),” it said in the statement.

“We also strictly adhere to our code of business conduct in our day-to-day operations.” – December 30, 2020.