Supermax sees no material impact after Canada puts govt contract on hold

 

Malaysian rubber glove maker Supermax Corp said on Monday it does not anticipate any material impact after Canada put on hold a federal government contract over forced labour allegations.

Malaysian factories making products ranging from medical gloves to palm oil have increasingly come under scrutiny over allegations they abuse foreign workers, who form a significant part of the manufacturing workforce.

Last week, Canada's Public Services and Procurement department said it was holding Supermax deliveries as it awaits an audit report from the company following an import ban by the United States.

The US Customs and Border Protection issued a "withhold release order" on Oct 21 that prohibits imports from Supermax based on reasonable information that indicates the use of forced labour in its manufacturing operations.

Supermax said on Monday that only a Canadian federal contract has been put on hold, and that other imports of personal protective equipment products have not been affected.

"The company does not foresee any material impact operationally," it said. Canada represents about 9 percent of the group's total business.

The audit report will be available for submission in the fourth week of November, it added.

Supermax also reiterated that it will speed up a process it had begun in 2019 to meet labour standards set by the International Labour Organisation.

"The process has well started and Supermax is surprised that due consideration has not been given to the fact that corrective steps have started and improvements made to labour welfare," it said.

- Reuters