SIME Darby Plantation Bhd (SDP) today denied claims that buyers are shunning the palm oil producer after allegations of forced labour levelled against the plantation giant.

In a statement to The Malaysian Insight today, SDP said it is not facing any systemic issues.

Despite having conducted internal assessment on its entire operations, SDP said it would commission an independent assessor to ensure that its workers are completely safe.

“We have already conducted internal assessments of our entire Malaysian operations. Our findings do not reveal any systemic issues in our operations.

“Nevertheless, as stated previously, we will also engage independent assessors to ensure that we leave no stone unturned in our quest to secure a completely safe and nurturing environment for all our workers, regardless of gender or nationality,” SDP said.

It was recently reported that major palm oil buyers are looking to omit FGV Holdings and Sime Darby Plantations from their global supply chains.

This is after the United States banned imports from the two Malaysian palm oil producers over forced labour allegations.

Four sources said other buyers have asked suppliers to lower or exclude products by the two companies for supplies entering US, Europe, Australia and Japan.

SDP said its customers have expressed support and are working closely to understand the substance of the allegations made against it.

It also pledged to address the withhold-release order (WRO) issued by the US Customs and Border Protection (CBP).

“Many of our customers have committed to sustainable sourcing and truly appreciate and understand our efforts to ensure our operations are managed well, sustainably and responsibly.

“SDP remains committed to addressing the withhold-release order (WRO) issued by the US Customs and Border Protection.”

Chocolate maker Hershey, Nestle and Unilever said they have suspended FGV since 2018 on the back of forced labour findings by industry watchdog, Roundtable on Sustainable Palm Oil.

Nestle and Unilever, together with Kraft Heinz, have yet to pull the plug on its dealings with Sime Darby, the world’s biggest producer of palm oil certified as sustainable by the RSPO.

Malaysia and Indonesia control nearly 85% of global production of palm oil. – February 11, 2021.