(Bloomberg) -- Malaysia's top fund manager Permodalan Nasional Bhd. has been engaging with Sime Darby Plantation Bhd. on the steps taken by the world's largest oil palm planter to solve its ongoing labor issues.
Sime is among Malaysia's palm and rubber-glove producers that have come under scrutiny over allegations of migrant worker abuse. Yet, the surge in palm oil prices has helped the company's shares rally 40% this year, valuing PNB's 56.4% holding at more than $4.7 billion.
The U.S. Customs and Border Protection in January said it would seize Sime's palm oil and related goods as it has sufficient information to determine that the products were made using convicts, forced or indentured labor.
Sime has since taken steps to improve its labor rights policy, including co-operating with the U.S CBP and appointing an independent ethical trade consultant to assess its local facilities. Last week it submitted to the U.S CBP a “comprehensive report” which includes its domestic operations mapped against each of the International Labor Organisation forced labor indicators, and description of improved governance structures.
“We are encouraged by this development and the company's commitment and efforts in resolving the ongoing labor issues and will nonetheless monitor developments closely,” PNB said in an emailed response to Bloomberg.
READ MORE:
- Sime Darby Plantation: Company Outlook
- Sime Darby Plantation Submitted Comprehensive Report to U.S CBP
- Cargill Says Sime Didn't Adequately Address Forced Labor Reports
- Sime Darby to Submit Labor Assessment to U.S. CBP by End-April
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