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By Chester Tay
KUALA LUMPUR – IOI Corp. Bhd. said on Friday she would contact U.S. Customs and Border Protection to respond to the forced labor allegations.
The Malaysian plantation giant said it recently learned of a letter from the US agency to a labor rights activist in which the agency acknowledged receipt of information about alleged labor rights violations at the IOI and said she would investigate.
IOI added that he had not been contacted by CBP about an investigation. “Nonetheless, IOI will take the proactive step of contacting CBP to confirm the existence of an investigation and offer our cooperation by providing explanations and documents to assist the investigation,” he said.
IOI shares were down 0.3% to 3.82 MYR in afternoon trading. The stock has fallen 13% year-to-date, which analysts attributed in part to labor shortages due to the Covid-19 pandemic, as well as demand for oil lower palm from India’s largest importer due to lockdowns.
IOI’s decision to contact CBP comes after the agency last year banned imports by Malaysian palm oil majors FGV Holdings and Sime Darby Plantations over allegations of forced labor.
Malaysia is one of the world’s largest producers of edible oil. The country’s plantations employ hundreds of thousands of migrant workers from across the region.
Write to Chester Tay at [email protected]
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