Top Glove

Top Glove Corporation Bhd
Company typePublic limited company
MYX: 7113 SGX: BVA
ISINMYL7113OO003
IndustryRubber
Founded1991
FounderLim Wee-Chai
HeadquartersSetia Alam, Malaysia
Number of locations
49 (as at August 2022)
Key people
Tan Sri Dr Lim Wee Chai, Executive Chairman

Lim Cheong Guan, Managing Director

Ng Yong Lin, Executive Director
ProductsRubber gloves
Number of employees
12,000
Websitewww.topglove.com

Top Glove Corporation Berhad is a Malaysian rubber glove manufacturer who also specialises in face masks, dental dams, and other products.[1] The company owns and operates 50 manufacturing facilities in Malaysia, Thailand, China, and Vietnam. They also have marketing offices in these countries as well as the United States, Germany and Brazil.[2]

History

Entrance to Top Glove Tower

The company was founded in Malaysia in 1991 by Tan Sri Dr Lim Wee Chai, with one production line and staff comprising 100 people. Wee Chai's parents are rubber plantation owners and traders. Top Glove has since become the world's largest manufacturer of gloves, commanding 26% of the world market share.[3][4]

Top Glove was listed on the Kuala Lumpur Stock Exchange (now) or Bursa Malaysia in August 2001.[5] In the span of a year, Top Glove Corporation Bhd's listing was promoted from the Second Board to the Main Board on May 16, 2002.[6][7]

On 28 June 2016, Top Glove was also listed at number 9[8] on the Main Board of the Singapore Exchange.[7][9]

In 2017, Top Glove announced that they would launch a new condom business in 2018 with a RM30 million (US$7 million) investment.[10]

As at 28 February 2022, Top Glove had a shareholder fund of RM6.95 billion[11] and for 2QFY2022 the Group achieved Sales Revenue of RM1.45 billion.[12]

As of November 2021, Top Glove has 812 production lines, 50 factories,[13] 195 countries of export and 2,000 customers.

In April 2018, Top Glove concluded its acquisition of leading surgical glovemaker, Aspion Sdn Bhd, its biggest M&A to date, which would see Top Glove emerging as the world's largest surgical glove manufacturer.[14]

In April 2020, the company announced that it would manufacture face masks due to the COVID-19 pandemic.[15] Due to rising demand for protective gear in response to COVID-19, Top Glove's profits had risen by 400% by mid-December 2020, with the company announcing a 20-times increase in quarterly net profit to RM 2.4 billion (US$590 million).[16]

Corporate identity

Headquarters and major facilities

Top Glove launched its new headquarters Top Glove Tower on 1 October 2015, located in Setia Alam, Shah Alam. It was officiated by Sultan of Selangor Sultan Sharafuddin Idris Shah.[17] Top Glove has a total of 50 factories across Malaysia, Thailand, China and Vietnam. Out of the 37 glove factories, 32 are located in Malaysia, three in Thailand, and one each in China and Vietnam.[18]

Philanthropy

Throughout 2020, Malaysia will experience slower adverse demand due to the negative impact of the COVID-19 pandemic.[19] Top Glove claimed that it would offer a total of 9,000 job opportunities for locals throughout 2021, to help address the rising unemployment rate in Malaysia. In a statement, Top Glove stated that it "hopes to achieve the target through a year-long recruitment campaign".[20]

In July 2020, Top Glove contributed three million gloves worth RM700,000 as well as medical equipment such as ventilators and medical suits worth RM300,000 to the Ministry of Health Malaysia (MOH). This initiative was facilitated by the Tan Sri Muhyiddin Charity Golf (TSMCG) Foundation which helped to disseminate these supplies to the hospitals and health departments identified by the MOH for the use of frontline professionals.[21]

In November 2020, the company donated a total of RM185 million to the government's COVID-19 fund set up to battle the pandemic.[22]

Controversies

Labour controversies

In December 2018, The Guardian reported that migrant workers were allegedly being subjected to forced labour, forced overtime, debt bondage, withheld wages and passport confiscation.[23] The company has denied these allegations and claimed that it has since improved its labour initiatives, which include the introduction of a zero cost recruitment policy.[24]

An investigation by Channel 4 News in June 2020 found that staff were living in cramped conditions, paid £1.08 an hour, forced to work overtime to meet the demand for gloves during the COVID-19 pandemic, and could not adequately practice social distancing despite the company claiming appropriate measures were taken.[25] Workers, many of whom were migrants, also claimed they paid up to $5,000 in recruitment fees to secure employment, leaving them in debt bondage.[26] Top Glove did not address any specific claims but called the investigation inaccurate.[27]

In July 2020, Top Glove engaged United Kingdom-based ethical trade consultancy Impactt Limited to assess the presence of forced labour by reference to the International Labor Organization's 11 Forced Labour Indicators, propose corrective action plans to improve the Group's labour practices, and monitor the Group's implementation of the corrective action plans.[28]

In April 2021, Impactt verified that the company has eliminated all indicators of systemic forced labour in its direct operations. This includes repayment of recruitment fees totaling USD $36 million to current and eligible former workers via monthly payments which were concluded in April 2021.[29]

US CBP Withhold Release Order (WRO) and revision

On 15 July 2020, the U.S. Customs and Border Protection (CBP) placed a Withhold Release Order (WRO) on imports of products made by subsidiaries of Top Glove for labour issues over debt bondage of its foreign workers and poor housing.[30][31] In response, Top Glove pledged to improve housing for their workers and remove the debt bondage of its workers in an effort to lift the ban.[32][33]

On 13 May 2021, the US Customs and Border Protection seized a shipment of 4.68 million Top Glove latex gloves in the Port of Kansas City, Missouri on the grounds that they had been manufactured using forced labour. This shipment was worth RM 2.8 million (US$690,000) and was bound for Kansas City.[34]

On 9 September 2021, the US Customs and Border Protection (CBP) announced that it has uplifted and modified the forced labour findings on Top Glove Corporation Bhd, and that the CBP will permit the importation of disposable gloves made at Top Glove facilities in Malaysia to US effective immediately.[35] The CBP cited Top Glove as an example of a company that did take proactive steps to engage with it to remediate the WRO or Finding.[36]

COVID-19 pandemic

In mid-November 2020, several COVID-19 cases were detected in one of the Top Glove dormitories in Klang which has led to an enhanced movement control order being implemented in the surrounding area.[37] By 27 November 2020, more than 4,000 cases were linked to the Top Glove dormitory cluster.[38] On 30 November, the EMCO at Top Glove's dormitories across Malaysia was extended until 14 December.[39] The company were required to temporarily close a total of 28 factories in stages in the area.[40][41]

According to a Malay Mail report published on 13 December 2020, several South Asian migrant workers had told the Agence France-Press about "appalling" living conditions including cramped dormitories housing 25 people. These overcrowded conditions had contributed to the spread of COVID-19 within 28 of Top Glove's 41 factories. In response to criticism and publicity, Top Glove announced plans to purchase more workers' accommodation and to build "mega-hostels" equipped with modern amenities that can house 7,300 people.[16] The same day, it was reported that Top Glove had fired a whistleblowing Nepalese migrant worker named Yubaraj Khadka for sharing photos of overcrowded working conditions, which were later picked up by Reuters.[42]

In a radio interview with BFM89.9 on 23 December 2020, Top Glove's Managing Director, Dato’ Lee Kim Meow said the company had established 3 helplines for aggrieved workers, one internal and two staffed by personnel from a consultant firm and an audit firm.[43] Top Glove announced that it would no longer penalise whistleblowers and would establish three helplines for workers’ complaints.[44]

In April 2021, during a media walkabout of Top Glove's workers’ accommodations in Klang and Setia Taipan, the company announced it would be investing up to a total of RM300 million to provide conducive workers' accommodation that comply to the Workers' Minimum Standards of Housing and Amenities Act 1990 (Act 446).[45] Glove manufacturer Top Glove Corp Bhd is working with Independent workers rights specialist, Andy Hall, as it takes measures to improve working and living conditions at its factories.[46]

References

  1. ^ "Top Glove Products - Overview". Top Glove. Archived from the original on 8 August 2020. Retrieved 8 August 2020.
  2. ^ "Our Locations". Top Glove. Archived from the original on 8 August 2020. Retrieved 8 August 2020.
  3. ^ "#1613 Lim Wee Chai". Forbes. Archived from the original on 13 May 2020. Retrieved 17 June 2020.
  4. ^ "About Us". Top Glove Malaysia. Archived from the original on 22 December 2019. Retrieved 8 August 2020.
  5. ^ "Announcement details". Bursa Malaysia. 8 August 2001. Archived from the original on 14 August 2020. Retrieved 8 August 2020.
  6. ^ "TOPGLOV - Transfer from the Second Board to the Main Board of the Kuala Lumpur Stock Exchange". Bursa Malaysia. 13 May 2002. Retrieved 8 August 2020.
  7. ^ a b "Other Corporate Information". Top Glove. Archived from the original on 8 August 2020. Retrieved 8 August 2020.
  8. ^ Chun Wai, Wai (26 July 2020). "Billionaire behind Top Glove is going places no Malaysian tycoons have". South China Morning Post. Archived from the original on 5 August 2020. Retrieved 8 August 2020.
  9. ^ "Top Glove, Riverstone & UG Healthcare Report Quarterly Earnings". SGX. 4 June 2020. Retrieved 8 August 2020.
  10. ^ "Top Glove to kick off condom business next year". South China Morning Post. Archived from the original on 18 June 2020. Retrieved 22 October 2018.
  11. ^ "Investor Relations". Top Glove. 8 August 2020. Retrieved 8 August 2020.
  12. ^ "Quarterly rpt on consolidated results for the financial period ended 28 Feb 2022". Bursa Malaysia. 10 March 2022. Retrieved 10 March 2022.
  13. ^ "Top Glove now third largest stock on Bursa Malaysia". Malay Mail. 13 July 2020. Archived from the original on 13 July 2020. Retrieved 8 August 2020.
  14. ^ "Not all gloom and doom for Top Glove". The Star. 14 July 2018. Archived from the original on 28 October 2018. Retrieved 10 April 2020.
  15. ^ Regencia, Ted; Stepansky, Joseph (10 April 2020). "Coronavirus deaths rise but signs of progress seen: Live updates". Al Jazeera. Archived from the original on 11 April 2020. Retrieved 10 April 2020.
  16. ^ a b "'Profits over people': Covid-19 overruns Top Glove factories as workers speak of appalling accommodations". Malay Mail. 13 December 2020. Archived from the original on 13 December 2020. Retrieved 13 December 2020.
  17. ^ "Sultan of Selangor launches Top Glove's new 23-storey building in Shah Alam". The Star. 8 October 2015. Retrieved 1 March 2022.
  18. ^ Tan, Siew Mung (4 June 2021). "Top Glove's annual glove production capacity hits 100 billion pieces". The Edge Markets. Retrieved 1 March 2022.
  19. ^ Tan, Royce (13 January 2021). "Risk of rising unemployment remains high with MCO 2.0". The Star (Malaysia).
  20. ^ Bala Krishnan, Dhesegaan (22 January 2021). "Booming Top Glove to offer 9,000 jobs to Malaysians this year". New Straits Times.
  21. ^ Bernama. "Tropicana, Top Glove contribute RM2.5mil of medical equipment to Health Ministry". New Straits Times.
  22. ^ "Kossan, Top Glove, Hartalega and Supermax confirm donations to Govt's RM400 mil COVID-19 fund". The Edge Malaysia. Retrieved 25 May 2023.
  23. ^ Ellis-Petersen, Hannah (9 December 2018). "NHS rubber gloves made in Malaysian factories linked with forced labour". The Guardian. Archived from the original on 7 April 2020. Retrieved 10 April 2020.
  24. ^ Chua, Gigi (14 December 2018). "Top Glove denies forced labour allegations". The Edge. Archived from the original on 28 April 2019. Retrieved 10 April 2020.
  25. ^ "Coronavirus hits Malaysian rubber glove giant". Catholic News in Asia | LiCAS.news | Licas News. 14 December 2020. Archived from the original on 20 December 2020. Retrieved 17 December 2020.
  26. ^ Channel 4 News Investigations Team (16 June 2020). "Revealed: Shocking conditions in PPE factories supplying UK". Channel 4. Archived from the original on 19 June 2020. Retrieved 19 June 2020.{{cite web}}: CS1 maint: numeric names: authors list (link)
  27. ^ FMT Reporters (18 June 2020). "FMT: Top Glove denies worker exploitation claims in British TV Report". FMT. Archived from the original on 19 June 2020. Retrieved 19 June 2020.
  28. ^ Updated Impactt statement on Top Glove Status (Report). Impactt Limited. 2021.
  29. ^ Top Glove Combined CAP Summary & Q3 Remediation payment verification findings (Report). Impactt Limited. 2021.
  30. ^ "Withhold Release Orders and Findings". U.S. Customs & Border Protection. Archived from the original on 16 August 2020. Retrieved 16 August 2020.
  31. ^ "Amid virus crisis, U.S. bars imports of Malaysia's Top Glove over labour issues". Reuters. 16 July 2020. Archived from the original on 5 August 2020. Retrieved 15 August 2020.
  32. ^ "Racing to reverse US ban, Top Glove improves workers' housing". The Edge Markets. 11 August 2020. Retrieved 15 August 2020.[permanent dead link‍]
  33. ^ "Top Glove still resolving US ban, remediation fee now at RM53m". The Edge Markets. 10 August 2020. Archived from the original on 20 September 2020. Retrieved 15 August 2020.
  34. ^ Chin, Emmanuel (13 May 2021). "Another Top Glove shipment seized by US authorities, this time worth RM2.8m". Malay Mail. Archived from the original on 13 May 2021. Retrieved 13 May 2021.
  35. ^ "CBP Modifies Forced Labor Finding on Top Glove Corporation Bhd". U.S. Customs and Border Protection. U.S. Customs and Border Protection. 9 September 2021. Retrieved 9 September 2021.
  36. ^ "Work with us, CBP tells Malaysian companies". The Edge Markets. Retrieved 26 February 2022.
  37. ^ "Top Glove dormitories in Klang under EMCO from Nov 17 to 30, says Ismail Sabri". The Edge Markets. 16 November 2020. Archived from the original on 16 November 2020. Retrieved 19 November 2020.
  38. ^ Thomas, Jason (27 November 2020). "Top Glove says 'in the process' of closing Meru factories". Free Malaysia Today. Archived from the original on 27 November 2020. Retrieved 30 November 2020.
  39. ^ Bedi, Rashvinjeet (30 November 2020). "EMCO at Top Glove dormitories in Klang extended another 14 days (updated)". The Star. Archived from the original on 30 November 2020. Retrieved 30 November 2020.
  40. ^ Adilla, Farah (25 November 2020). "Top Glove tumbles on plant closure, move may push glove prices higher | New Straits Times". NST Online. Retrieved 1 December 2020.
  41. ^ Beech, Hannah (20 December 2020). "Top Glove's workers in Malaysia suffer from a large outbreak of Covid-19". The New York Times. Archived from the original on 1 January 2021. Retrieved 13 September 2021.
  42. ^ "Top Glove fired whistleblower before Covid-19 outbreak". Malay Mail. 13 December 2020. Archived from the original on 13 December 2020. Retrieved 13 December 2020.
  43. ^ Kanesan & Wong, Roshan & Shou Ning (23 December 2020). "A WIN FOR THE COMPANY BUT LESS SO FOR THE WORKERS". BFM 89.9. Retrieved 3 March 2022.
  44. ^ "Top Glove says will no longer fire whistleblowers, opens helplines for workers". The Star. 23 December 2020. Archived from the original on 23 December 2020. Retrieved 23 December 2020.
  45. ^ Chan, Dawn (16 April 2021). "Top Glove to invest RM300 million for conducive workers' accommodation". New Straits Times. Retrieved 16 April 2021.
  46. ^ TIMBUONG, JO (8 April 2021). "Top Glove works with critic to improve working conditions". The Star (Malaysia). Retrieved 3 March 2022.
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