KUALA LUMPUR, Dec 31 ― Sime Darby Plantation Bhd’s (SDP) shares fell 2.13 per cent in early trade today due to the ban imposed by the United States (US) Customs and Border Protection (CBP) on its products over allegations of forced labour in its production process.
As at 9.56am, Sime Darby Plantation lost 11 sen to RM5.06, with 70,400 shares traded.
The US CBP had issued a “Withhold Release Order” (WRO) on palm oil and products containing palm oil produced by SDP and its subsidiaries, joint ventures, and affiliated entities, allowing it to detain shipments based on suspicion of forced labour involvement.
In a statement yesterday, CBP said the issuance of the WRO against SDP was based on information that reasonably indicated the presence of all 11 of the International Labour Organisation’s forced labour indicators in SDP’s production process.
In September, the CBP had issued a separate WRO against another Malaysian palm oil producer, FGV Holdings Bhd. ― Bernama