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PETALING JAYA: Top Glove said today that it has committed RM100 million to build new shelters for 7,300 workers over the next three years.
At a press conference to announce its financial results for the first quarter ending November 30 (1Q2021), the world’s largest glove manufacturer said that RM 70 million would be spent on the construction of “mega hostels” in Klang and Banting in Selangor, while 30 million ringgit has been allocated. hostels in Johor, Negeri Sembilan, Perak, Kelantan and Kedah.
“This will ensure that we have enough room for our employees to meet our future expansion plans,” said CEO Lim Cheong Guan.
Top Glove adaptations have been in the limelight recently after the Labor Department said last week that 19 investigative documents had been opened against the company under the Minimum Standards of Housing and Services for Workers of 1990 (Law 446).
This followed raids on workers’ shelters at the company’s subsidiaries in five states: Johor, Negeri Sembilan, Perak, Kelantan and Selangor.
Law 446 obliges employers to comply with the minimum space requirements for the accommodation of workers, basic facilities and safety and hygiene standards.
Top Glove reiterated today that it has been working to secure more accommodation for workers and improve existing housing for its large number of workers, for which the company has already invested RM70 million.
In addition, Top Glove said it had spent about RM20 million to buy 100 apartment units in the past two months and also rents more houses for its workers.
Managing Director Lee Kim Meow said the company’s future hostels will be fully equipped with a host of amenities and facilities such as mini markets, barbers, ATMs and money transfer companies.
Lee also said that all factories that Top Glove builds in the future will have an accommodation next to him.
“We realize that if we can build it on an integrated scale, there will be fewer complaints from local residents. This will also limit the movement of workers living in the various shelters, ”he said.
More than 5,000 of the company’s workers in Meru, Klang, tested positive for Covid-19. This has led area residents to fear infections in the community even though worker shelters are subject to an enhanced movement control order (EMCO).
Last week, Chief Health Officer Dr. Noor Hisham Abdullah confirmed that the second generation of infections in the Teratai group, linked to Top Glove workers in Meru, had spread to the community.
Meanwhile, company president Lim Wee Chai said they expect all of their 28 glove manufacturing plants in Meru, Klang, to resume operations in the next two to three weeks, Bernama reported.
Top Glove had temporarily closed 28 of its factories in Klang due to the increase in Covid-19 infections among its workers there.
These plants represent around 50% of the company’s production capacity.
