Top Glove

Last updated

Top Glove Corporation Bhd
Company type Public limited company
MYX: 7113 SGX: BVA
ISIN MYL7113OO003
Industry Rubber
Founded1991
Founder Lim Wee-Chai
Headquarters Setia Alam, Malaysia
Number of locations
49 (as at August 2022)
Key people
Tan Sri Dr Lim Wee Chai, Executive Chairman

Lim Cheong Guan, Managing Director

Ng Yong Lin, Executive Director
Products Rubber gloves
Number of employees
12,000
Website www.topglove.com

Top Glove Corporation Berhad is a Malaysian rubber glove manufacturer who also specialises in face masks, dental dams, and other products. [1] The company owns and operates 50 manufacturing facilities in Malaysia, Thailand, China, and Vietnam. They also have marketing offices in these countries as well as the United States, Germany and Brazil. [2]

Contents

History

Entrance to Top Glove Tower Entrance to Top Glove Tower.jpg
Entrance to Top Glove Tower

The company was founded in Malaysia in 1991 by Tan Sri Dr Lim Wee Chai, with one production line and staff comprising 100 people. Wee Chai's parents are rubber plantation owners and traders. Top Glove has since become the world's largest manufacturer of gloves, commanding 26% of the world market share. [3] [4]

Top Glove was listed on the Kuala Lumpur Stock Exchange (now) or Bursa Malaysia in August 2001. [5] In the span of a year, Top Glove Corporation Bhd's listing was promoted from the Second Board to the Main Board on May 16, 2002. [6] [7]

On 28 June 2016, Top Glove was also listed at number 9 [8] on the Main Board of the Singapore Exchange. [7] [9]

In 2017, Top Glove announced that they would launch a new condom business in 2018 with a RM30 million (US$7 million) investment. [10]

As at 28 February 2022, Top Glove had a shareholder fund of RM6.95 billion [11] and for 2QFY2022 the Group achieved Sales Revenue of RM1.45 billion. [12]

As of November 2021, Top Glove has 812 production lines, 50 factories, [13] 195 countries of export and 2,000 customers.

In April 2018, Top Glove concluded its acquisition of leading surgical glovemaker, Aspion Sdn Bhd, its biggest M&A to date, which would see Top Glove emerging as the world's largest surgical glove manufacturer. [14]

In April 2020, the company announced that it would manufacture face masks due to the COVID-19 pandemic. [15] Due to rising demand for protective gear in response to COVID-19, Top Glove's profits had risen by 400% by mid-December 2020, with the company announcing a 20-times increase in quarterly net profit to RM 2.4 billion (US$590 million). [16]

Corporate identity

Headquarters and major facilities

Top Glove launched its new headquarters Top Glove Tower on 1 October 2015, located in Setia Alam, Shah Alam. It was officiated by Sultan of Selangor Sultan Sharafuddin Idris Shah. [17] Top Glove has a total of 50 factories across Malaysia, Thailand, China and Vietnam. Out of the 37 glove factories, 32 are located in Malaysia, three in Thailand, and one each in China and Vietnam. [18]

Philanthropy

Throughout 2020, Malaysia will experience slower adverse demand due to the negative impact of the COVID-19 pandemic. [19] Top Glove claimed that it would offer a total of 9,000 job opportunities for locals throughout 2021, to help address the rising unemployment rate in Malaysia. In a statement, Top Glove stated that it "hopes to achieve the target through a year-long recruitment campaign". [20]

In July 2020, Top Glove contributed three million gloves worth RM700,000 as well as medical equipment such as ventilators and medical suits worth RM300,000 to the Ministry of Health Malaysia (MOH). This initiative was facilitated by the Tan Sri Muhyiddin Charity Golf (TSMCG) Foundation which helped to disseminate these supplies to the hospitals and health departments identified by the MOH for the use of frontline professionals. [21]

In November 2020, the company donated a total of RM185 million to the government's COVID-19 fund set up to battle the pandemic. [22]

Controversies

Labour controversies

In December 2018, The Guardian reported that migrant workers were allegedly being subjected to forced labour, forced overtime, debt bondage, withheld wages and passport confiscation. [23] The company has denied these allegations and claimed that it has since improved its labour initiatives, which include the introduction of a zero cost recruitment policy. [24]

An investigation by Channel 4 News in June 2020 found that staff were living in cramped conditions, paid £1.08 an hour, forced to work overtime to meet the demand for gloves during the COVID-19 pandemic, and could not adequately practice social distancing despite the company claiming appropriate measures were taken. [25] Workers, many of whom were migrants, also claimed they paid up to $5,000 in recruitment fees to secure employment, leaving them in debt bondage. [26] Top Glove did not address any specific claims but called the investigation inaccurate. [27]

In July 2020, Top Glove engaged United Kingdom-based ethical trade consultancy Impactt Limited to assess the presence of forced labour by reference to the International Labor Organization's 11 Forced Labour Indicators, propose corrective action plans to improve the Group's labour practices, and monitor the Group's implementation of the corrective action plans. [28]

In April 2021, Impactt verified that the company has eliminated all indicators of systemic forced labour in its direct operations. This includes repayment of recruitment fees totaling USD $36 million to current and eligible former workers via monthly payments which were concluded in April 2021. [29]

US CBP Withhold Release Order (WRO) and revision

On 15 July 2020, the U.S. Customs and Border Protection (CBP) placed a Withhold Release Order (WRO) on imports of products made by subsidiaries of Top Glove for labour issues over debt bondage of its foreign workers and poor housing. [30] [31] In response, Top Glove pledged to improve housing for their workers and remove the debt bondage of its workers in an effort to lift the ban. [32] [33]

On 13 May 2021, the US Customs and Border Protection seized a shipment of 4.68 million Top Glove latex gloves in the Port of Kansas City, Missouri on the grounds that they had been manufactured using forced labour. This shipment was worth RM 2.8 million (US$690,000) and was bound for Kansas City. [34]

On 9 September 2021, the US Customs and Border Protection (CBP) announced that it has uplifted and modified the forced labour findings on Top Glove Corporation Bhd, and that the CBP will permit the importation of disposable gloves made at Top Glove facilities in Malaysia to US effective immediately. [35] The CBP cited Top Glove as an example of a company that did take proactive steps to engage with it to remediate the WRO or Finding. [36]

COVID-19 pandemic

In mid-November 2020, several COVID-19 cases were detected in one of the Top Glove dormitories in Klang which has led to an enhanced movement control order being implemented in the surrounding area. [37] By 27 November 2020, more than 4,000 cases were linked to the Top Glove dormitory cluster. [38] On 30 November, the EMCO at Top Glove's dormitories across Malaysia was extended until 14 December. [39] The company were required to temporarily close a total of 28 factories in stages in the area. [40] [41]

According to a Malay Mail report published on 13 December 2020, several South Asian migrant workers had told the Agence France-Press about "appalling" living conditions including cramped dormitories housing 25 people. These overcrowded conditions had contributed to the spread of COVID-19 within 28 of Top Glove's 41 factories. In response to criticism and publicity, Top Glove announced plans to purchase more workers' accommodation and to build "mega-hostels" equipped with modern amenities that can house 7,300 people. [16] The same day, it was reported that Top Glove had fired a whistleblowing Nepalese migrant worker named Yubaraj Khadka for sharing photos of overcrowded working conditions, which were later picked up by Reuters. [42]

In a radio interview with BFM89.9 on 23 December 2020, Top Glove's Managing Director, Dato’ Lee Kim Meow said the company had established 3 helplines for aggrieved workers, one internal and two staffed by personnel from a consultant firm and an audit firm. [43] Top Glove announced that it would no longer penalise whistleblowers and would establish three helplines for workers’ complaints. [44]

In April 2021, during a media walkabout of Top Glove's workers’ accommodations in Klang and Setia Taipan, the company announced it would be investing up to a total of RM300 million to provide conducive workers' accommodation that comply to the Workers' Minimum Standards of Housing and Amenities Act 1990 (Act 446). [45] Glove manufacturer Top Glove Corp Bhd is working with Independent workers rights specialist, Andy Hall, as it takes measures to improve working and living conditions at its factories. [46]

Related Research Articles

<span class="mw-page-title-main">Medical glove</span> Single-use glove worn during medical examinations and procedures

Medical gloves are disposable gloves used during medical examinations and procedures to help prevent cross-contamination between caregivers and patients. Medical gloves are made of different polymers including latex, nitrile rubber, polyvinyl chloride and neoprene; they come unpowdered, or powdered with corn starch to lubricate the gloves, making them easier to put on the hands.

<span class="mw-page-title-main">Maybank</span> Malaysian bank

Malayan Banking Berhad is a Malaysian universal bank, with key operating "home markets" of Malaysia, Singapore, and Indonesia. According to the 2020 Brand Finance report, Maybank is Malaysia's most valuable bank brand, the fourth-top brand amongst the ASEAN countries and ranked 70th among the world’s most valuable bank brands.

<span class="mw-page-title-main">IOI Group</span> Malaysian conglomerate

IOI Corporation Berhad, commonly referred to as IOI, was incorporated on 31 October 1969 as Industrial Oxygen Incorporated Sdn Bhd. IOI is one of Malaysia's biggest conglomerates. It ventured into oil palm plantations in 1983, followed by property development in 1984 and refineries in 1997. IOI was listed on the Kuala Lumpur Stock Exchange (KLSE) and trading as MYX: 1961—now known as Bursa Malaysia—in 1980.

Supermax Corporation Berhad started as a trader and exporter of latex gloves in 1987 before venturing into manufacturing in 1989. It is Malaysia's largest Own Brand Manufacturer and the world's second largest producer of rubber gloves.

Hon Hai Precision Industry Co. Ltd., trading as Hon Hai Technology Group in China and Taiwan, and known as Foxconn Technology Group internationally, is a Taiwanese multinational electronics contract manufacturer established in 1974 with headquarters in Tucheng District, New Taipei City, Taiwan. In 2023, the company's annual revenue reached 6.16 trillion New Taiwan dollars and was ranked 20th in the 2023 Fortune Global 500. It is the world's largest contract manufacturer of electronics. While headquartered in Taiwan, the company earns the majority of its revenue from assets in China and is one of the largest employers worldwide. Terry Gou is the company founder and former chairman.

<span class="mw-page-title-main">Ramly Group</span> Malaysian food company

Ramly Processing Sdn. Bhd. is a Malaysian frozen and fast food company founded by Ramly bin Mokni through Pemasaran Ramly Mokni Sdn. Bhd.

<span class="mw-page-title-main">Cahya Mata Sarawak</span> Malaysian conglomerate

Cahya Mata Sarawak Berhad (CMSB) (MYX: 2852) is a corporation listed on the Main Market of the Malaysian stock exchange, Bursa Malaysia. It is an investment holding company involved in Sarawak in manufacturing of cement and other construction materials, road construction and maintenance, laying of undersea pipelines, dam construction, smelting, property development, financial services, and education.

<span class="mw-page-title-main">Lim Wee-Chai</span> Malaysian businessman

Lim Wee Chai is a Malaysian businessman. He is the Executive Chairman and Founder of Top Glove Corporation Bhd, a glove manufacturing company, which was founded in 1991 and is listed on Bursa Malaysia and the main board of the Singapore Exchange (SGX). Lim was listed by Forbes as Malaysia's 8th richest person in 2021.

<span class="mw-page-title-main">Slavery in the 21st century</span> Contemporary slavery, also known as modern slavery or neo-slavery

Contemporary slavery, also sometimes known as modern slavery or neo-slavery, refers to institutional slavery that continues to occur in present-day society. Estimates of the number of enslaved people today range from around 38 million to 49.6 million, depending on the method used to form the estimate and the definition of slavery being used. The estimated number of enslaved people is debated, as there is no universally agreed definition of modern slavery; those in slavery are often difficult to identify, and adequate statistics are often not available.

<span class="mw-page-title-main">Asia Media Group</span>

Asia Media Group Berhad is a broadcasting, advertising and digital media company in Malaysia. It operates the country's Largest Transit-TV Network. The company provides infotainment and advertising services such as program sponsorships and video advertising using digital electronic displays installed in various indoor and outdoor premises. Asia Media also provides entertainment services, including local news, sports, health, entertainment, and documentary content.

<span class="mw-page-title-main">Ricky Wong (Malaysian businessman)</span> Malaysian businessman

Ricky Wong Shee Kai is a Malaysian investor, entrepreneur and philanthropist. He is the former CEO and founder of Asia Media, Malaysia's largest Transit-TV network operator, three-time winner of the JCI – Creative Young Entrepreneur Award. He was honoured as a Young Global Leader by the World Economic Forum, Davos in 2014.

<span class="mw-page-title-main">ViTrox</span> Malaysian technology company

ViTrox Corporation Berhad is a Malaysian technology company based in Penang, Malaysia, specializing in design and development of machine vision and electronics. The company is primarily focused on the automated vision inspection systems and equipment for the semiconductor, printed circuit board assemblies, and electronics communication industries.

<span class="mw-page-title-main">Kossan Rubber Industries</span> Malaysian rubber company

Kossan Rubber Industries is a Kuala Lumpur based public limited company engaged in manufacture, sale, and export of rubber products. It was founded by Tan Sri Dato’ Lim Kuang Sia in 1979. KOSSAN has to-date an annual gloves production capacity of 32 billion pieces and a compounding capacity of technical rubber products exceeding 10,000 metric tonne per annum.

<span class="mw-page-title-main">COVID-19 pandemic in Singapore</span>

The COVID-19 pandemic in Singapore was a part of the worldwide pandemic of coronavirus disease 2019 caused by severe acute respiratory syndrome coronavirus 2. The first case in Singapore was confirmed on 23 January 2020. Early cases were primarily imported until local transmission began to develop in February and March. In late March and April, COVID-19 clusters were detected at multiple migrant worker dormitories, which soon contributed to an overwhelming proportion of new cases in the country.

The COVID-19 pandemic in Malaysia was a part of the worldwide pandemic of coronavirus disease 2019 caused by severe acute respiratory syndrome coronavirus 2. As of 10 February 2023, with over 5 million confirmed COVID-19 cases, a high of approximately 323,000 active cases, nearly 40,000 deaths, and over 66 million tests, the country was ranked third in the number of COVID-19 cases in Southeast Asia behind Vietnam and Indonesia, and fourth in the number of COVID-19 deaths in Southeast Asia behind Indonesia, the Philippines, and Vietnam.

<span class="mw-page-title-main">Karex</span> Malaysian condom manufacturer

Karex Berhad is a Malaysian condom manufacturer, one of the largest in the world. It produces more than five billion condoms a year and one in every five condoms globally. The company also supplies condoms to marketing brands like Durex.

A Tablighi Jamaat religious conference that took place at the "Masjid Jamek Sri Petaling" in Kuala Lumpur's Sri Petaling district between 27 February to 1 March 2020 became a COVID-19 super-spreader event with more than 3,300 cases being linked to the event. By 19 May 2020, the Malaysian Director-General of Health Noor Hisham Abdullah confirmed that 48% of the country's COVID-19 cases (3,347) had been linked to the Kuala Lumpur Tablighi Jamaat cluster. Additionally, nearly 10% of attendees were overseas visitors, causing COVID-19 to spread to other countries in Southeast Asia. On 8 July 2020, this cluster was declared over by the Ministry of Health.

<span class="mw-page-title-main">Economic impact of the COVID-19 pandemic in Malaysia</span>

The COVID-19 pandemic in Malaysia has had a significant impact on the Malaysian economy, leading to the devaluation of the Malaysian ringgit (MYR) and the decline in the country's gross domestic product. The pandemic also adversely affected several key sectors including entertainment, markets, retail, hospitality, and tourism. Besides shortages in goods and services, many businesses had to cope with social distancing and lockdown restrictions, which affected their operations and revenue. The pandemic also drew attention to workplace safety and the exploitation of migrant workers working in Malaysian industries.

<span class="mw-page-title-main">Sama Jaya Free Industrial Zone</span> Place in Sarawak, Malaysia

Sama Jaya Free Industrial Zone is a high tech industrial zone located in Kuching, Sarawak, Malaysia.

References

  1. ↑ "Top Glove Products - Overview". Top Glove. Archived from the original on 8 August 2020. Retrieved 8 August 2020.
  2. ↑ "Our Locations". Top Glove. Archived from the original on 8 August 2020. Retrieved 8 August 2020.
  3. ↑ "#1613 Lim Wee Chai". Forbes. Archived from the original on 13 May 2020. Retrieved 17 June 2020.
  4. ↑ "About Us". Top Glove Malaysia. Archived from the original on 22 December 2019. Retrieved 8 August 2020.
  5. ↑ "Announcement details". Bursa Malaysia. 8 August 2001. Archived from the original on 14 August 2020. Retrieved 8 August 2020.
  6. ↑ "TOPGLOV - Transfer from the Second Board to the Main Board of the Kuala Lumpur Stock Exchange". Bursa Malaysia. 13 May 2002. Retrieved 8 August 2020.
  7. 1 2 "Other Corporate Information". Top Glove. Archived from the original on 8 August 2020. Retrieved 8 August 2020.
  8. ↑ Chun Wai, Wai (26 July 2020). "Billionaire behind Top Glove is going places no Malaysian tycoons have". South China Morning Post. Archived from the original on 5 August 2020. Retrieved 8 August 2020.
  9. ↑ "Top Glove, Riverstone & UG Healthcare Report Quarterly Earnings". SGX. 4 June 2020. Retrieved 8 August 2020.
  10. ↑ "Top Glove to kick off condom business next year". South China Morning Post. Archived from the original on 18 June 2020. Retrieved 22 October 2018.
  11. ↑ "Investor Relations". Top Glove. 8 August 2020. Retrieved 8 August 2020.
  12. ↑ "Quarterly rpt on consolidated results for the financial period ended 28 Feb 2022". Bursa Malaysia. 10 March 2022. Retrieved 10 March 2022.
  13. ↑ "Top Glove now third largest stock on Bursa Malaysia". Malay Mail. 13 July 2020. Archived from the original on 13 July 2020. Retrieved 8 August 2020.
  14. ↑ "Not all gloom and doom for Top Glove". The Star . 14 July 2018. Archived from the original on 28 October 2018. Retrieved 10 April 2020.
  15. ↑ Regencia, Ted; Stepansky, Joseph (10 April 2020). "Coronavirus deaths rise but signs of progress seen: Live updates". Al Jazeera. Archived from the original on 11 April 2020. Retrieved 10 April 2020.
  16. 1 2 "'Profits over people': Covid-19 overruns Top Glove factories as workers speak of appalling accommodations". Malay Mail . 13 December 2020. Archived from the original on 13 December 2020. Retrieved 13 December 2020.
  17. ↑ "Sultan of Selangor launches Top Glove's new 23-storey building in Shah Alam". The Star . 8 October 2015. Retrieved 1 March 2022.
  18. ↑ Tan, Siew Mung (4 June 2021). "Top Glove's annual glove production capacity hits 100 billion pieces". The Edge Markets. Retrieved 1 March 2022.
  19. ↑ Tan, Royce (13 January 2021). "Risk of rising unemployment remains high with MCO 2.0". The Star (Malaysia) .
  20. ↑ Bala Krishnan, Dhesegaan (22 January 2021). "Booming Top Glove to offer 9,000 jobs to Malaysians this year". New Straits Times .
  21. ↑ Bernama. "Tropicana, Top Glove contribute RM2.5mil of medical equipment to Health Ministry". New Straits Times.
  22. ↑ "Kossan, Top Glove, Hartalega and Supermax confirm donations to Govt's RM400 mil COVID-19 fund". The Edge Malaysia. Retrieved 25 May 2023.
  23. ↑ Ellis-Petersen, Hannah (9 December 2018). "NHS rubber gloves made in Malaysian factories linked with forced labour". The Guardian . Archived from the original on 7 April 2020. Retrieved 10 April 2020.
  24. ↑ Chua, Gigi (14 December 2018). "Top Glove denies forced labour allegations". The Edge . Archived from the original on 28 April 2019. Retrieved 10 April 2020.
  25. ↑ "Coronavirus hits Malaysian rubber glove giant". Catholic News in Asia | LiCAS.news | Licas News. 14 December 2020. Archived from the original on 20 December 2020. Retrieved 17 December 2020.
  26. ↑ Channel 4 News Investigations Team (16 June 2020). "Revealed: Shocking conditions in PPE factories supplying UK". Channel 4. Archived from the original on 19 June 2020. Retrieved 19 June 2020.{{cite web}}: CS1 maint: numeric names: authors list (link)
  27. ↑ FMT Reporters (18 June 2020). "FMT: Top Glove denies worker exploitation claims in British TV Report". FMT. Archived from the original on 19 June 2020. Retrieved 19 June 2020.
  28. ↑ Updated Impactt statement on Top Glove Status (Report). Impactt Limited. 2021.
  29. ↑ Top Glove Combined CAP Summary & Q3 Remediation payment verification findings (Report). Impactt Limited. 2021.
  30. ↑ "Withhold Release Orders and Findings". U.S. Customs & Border Protection. Archived from the original on 16 August 2020. Retrieved 16 August 2020.
  31. ↑ "Amid virus crisis, U.S. bars imports of Malaysia's Top Glove over labour issues". Reuters. 16 July 2020. Archived from the original on 5 August 2020. Retrieved 15 August 2020.
  32. ↑ "Racing to reverse US ban, Top Glove improves workers' housing". The Edge Markets. 11 August 2020. Retrieved 15 August 2020.[ permanent dead link ]
  33. ↑ "Top Glove still resolving US ban, remediation fee now at RM53m". The Edge Markets. 10 August 2020. Archived from the original on 20 September 2020. Retrieved 15 August 2020.
  34. ↑ Chin, Emmanuel (13 May 2021). "Another Top Glove shipment seized by US authorities, this time worth RM2.8m". Malay Mail . Archived from the original on 13 May 2021. Retrieved 13 May 2021.
  35. ↑ "CBP Modifies Forced Labor Finding on Top Glove Corporation Bhd". U.S. Customs and Border Protection. U.S. Customs and Border Protection. 9 September 2021. Retrieved 9 September 2021.
  36. ↑ "Work with us, CBP tells Malaysian companies". The Edge Markets. Retrieved 26 February 2022.
  37. ↑ "Top Glove dormitories in Klang under EMCO from Nov 17 to 30, says Ismail Sabri". The Edge Markets . 16 November 2020. Archived from the original on 16 November 2020. Retrieved 19 November 2020.
  38. ↑ Thomas, Jason (27 November 2020). "Top Glove says 'in the process' of closing Meru factories". Free Malaysia Today . Archived from the original on 27 November 2020. Retrieved 30 November 2020.
  39. ↑ Bedi, Rashvinjeet (30 November 2020). "EMCO at Top Glove dormitories in Klang extended another 14 days (updated)". The Star . Archived from the original on 30 November 2020. Retrieved 30 November 2020.
  40. ↑ Adilla, Farah (25 November 2020). "Top Glove tumbles on plant closure, move may push glove prices higher | New Straits Times". NST Online. Retrieved 1 December 2020.
  41. ↑ Beech, Hannah (20 December 2020). "Top Glove's workers in Malaysia suffer from a large outbreak of Covid-19". The New York Times . Archived from the original on 1 January 2021. Retrieved 13 September 2021.
  42. ↑ "Top Glove fired whistleblower before Covid-19 outbreak". Malay Mail . 13 December 2020. Archived from the original on 13 December 2020. Retrieved 13 December 2020.
  43. ↑ Kanesan & Wong, Roshan & Shou Ning (23 December 2020). "A WIN FOR THE COMPANY BUT LESS SO FOR THE WORKERS". BFM 89.9. Retrieved 3 March 2022.
  44. ↑ "Top Glove says will no longer fire whistleblowers, opens helplines for workers". The Star . 23 December 2020. Archived from the original on 23 December 2020. Retrieved 23 December 2020.
  45. ↑ Chan, Dawn (16 April 2021). "Top Glove to invest RM300 million for conducive workers' accommodation". New Straits Times. Retrieved 16 April 2021.
  46. ↑ TIMBUONG, JO (8 April 2021). "Top Glove works with critic to improve working conditions". The Star (Malaysia). Retrieved 3 March 2022.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.