Negative news sends Top Glove stock down almost 6%

KUALA LUMPUR: Shares of Top Glove Corp Bhd took a beating in early trade Monday following news that it was accused of forced labour.

The world’s biggest glove-maker fell 5.93%, or 33 sen to RM5.57 with over 1.2 million shares done.

According to reports, Britain is launching an investigation into medical gloves used by its health service after a Thomson Reuters Foundation expose found stocks from Malaysia could be tainted by the mistreatment of migrant workers at the world's biggest glove-maker.

The news report said Top Glove declined to respond directly when asked for comment, it released a statement in which it conceded that excessive daily overtime was a problem.

Top Glove has denied the conditions in its factories were a violation of workers’ rights.

“We assure you that the allegations are entirely unfounded and such allegations tarnish our good name,” it said, emphasising that it complied with “local labour law requirements” and had won a number of human resources awards.

“Top Glove adopts a zero-tolerance policy with any regard to the abuse of human’s rights at all levels,” said the statement.

“In fact our human/labour rights and health initiatives exceed those of the glove industry average.”