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KUALA LUMPUR, Dec 31 – Cultural differences and the way things work in Malaysia are among the factors involved in the US Customs and Border Protection (CBP) decision to stop any palm oil and products manufactured by two local palm oil companies and their subsidiaries or affiliates due to allegations of forced labor.
The Director General of the Malaysian Palm Oil Board (MPOB), Ahmad Parveez Ghulam Kadir, said that forced labor defined by the United States was likely different from Malaysia, which subsequently led to misunderstanding and the subsequent ban on the products of Oil palm.
As Ahmad explained, he said that the practice of children helping their parents has been commonplace in Malaysian palm oil plantations for a long time.
“Every time there are school holidays, this is a common practice in Felda and small plantations.
“However, there are previously published articles on labor issues within the palm oil industry in Indonesia and Malaysia where children were supposed to be in school to improve their family’s circumstances, but remained on the plantations.
“We must understand that there are certain sectors that have tried to use this issue as propaganda. If possible, we should prevent such issues from persisting, as related NGOs could take advantage of the situation and claim the use of child labor, “Astro Awani was quoted as saying.
In July, a Hong Kong-based anti-trafficking NGO called Liberty Shared filed a petition against Malaysian palm oil giant Sime Darby Plantation Bhd for alleged child and forced labor.
Yesterday, CBP said a detainer was issued based on information that Sime Darby Plantation has 11 of the International Labor Organization designated marks of forced labor.
Last year, CBP had already issued a separate order against another Malaysian palm oil giant, FGV Holdings Bhd, following allegations of child and forced labor, following two petitions: from the Grant & Eisenhofer ESG Institute, and the Forum Labor Rights International, Rainforest Action. Network and SumOfUs.
However, Ahamd said the ban should not be taken lightly and should be resolved as soon as possible.
“Even though the United States (as an oil palm importer) is ranked 15th, it is crucial for us to maintain our position in the global market because such a small matter could get worse,” he said.
He also expressed his confidence that Sime Darby will take the necessary steps to regain confidence in its products.
“Many seem to misunderstand the labor issue because what we are doing is in line with our needs. But in the United States they have their own labor laws where their definition of forced labor is different from ours.
“Perhaps some of our actions that we consider normal and that exclude the participation of forced labor are for them a kind of forced labor,” Ahmad added.
The United States is one of the largest importers of palm oil products from Malaysia. In 2019, Malaysia’s palm oil product exports to the US were worth RM3.1 billion (1.1 million tonnes).
The American Tariff Act of 1930 prohibits the entry of goods arriving in US ports if there is reason to believe that they contain materials manufactured by forced labor.
