Canada has followed the U.S. to suspend imports from Supermax Corp., a Malaysian glovemaker, on allegations of forced labor practices.
In a statement on November 10, Canada said that it had stopped additional deliveries from Supermax Healthcare Canada to the government until the company’s audit report was reviewed by authorities, procurement, and public services of Canada. The audit report is expected in the middle of November, as per the statement.
As per Bloomberg news, the share prices of Supermax dropped by 3.8% at 9.19 am local time, while the rival shares remained largely unaffected. After being the hottest items during the pandemic in 2020, the three leaders of the industry, Supermax, Hartalega Holdings Bhd., and Top Glove Corp, have seen performances halved this year.
The gloves sector business outlook is reviewed after allegations of labor abuse and the rising pace of vaccinations.
The authorities in Canada said that they were aware of the steps taken by U.S Government against Supermax. The Malaysian glovemaker has hired an independent auditing firm to conduct a forensic audit of its operations under International Labour Organization indicators of forced labor.
Officials at the U.S ports of entry were ordered by U.S Customs and Border Protection to stop the entry of latex gloves made by Supermax on information that forced labor was used. According to Supermax, they have been complying with the International Labour Organization norms since 2019.
Malaysia, which makes everything from palm oil to latex gloves, has been grappling with forced labor practices, and their companies have been subjected to intense scrutiny. Earlier, imports from Sime Darby Plantation Bhd. and U.S. customs banned FGV Holdings Bud. Last month the customs allowed, after a yearlong embargo, the world’s largest glove maker, Top Glove Corp, to resume shipment.
