Update: You can read the full Impactt report here.

As the quarterly reports of Hartalega and Supermax are expected to be released this week (or next week), I was planning on writing a very different gloves-related article today. However, Top Glove surprised me pleasantly by announcing that they have gotten a confirmation on scoring all "A"s in the latest forced labor indicators report prepared by Impactt. You can read their official press release here.

As can be seen, there has been a dramatic improvement in the situation at the company, which will likely help with their ESG scores as well - something international institutions are paying continuously more attention to. The MSCI rating of the company is BB, or at the lower end of average - not perfect (see here). The company also scores 26.1 (classified as medium risk) in the Sustainalytics ratings (see here). Here is how that compares to other glove manufacturers:

Thus, the company certainly has more to do in regards with ESG-related matters. However, as far as the reasons for the previous CBP ban are concerned, it seems like the issues have been resolved. The fact that the management has taken proactive measures to resolve all of the outstanding matters within a month is commendable. This is what I was hoping to see when I wrote this post.

However, as a person interested in seeing Malaysia and Malaysian business do well in general, I cannot help but be concerned. As I mentioned in my earlier post, many of the issues related to Top Glove's ban do not appear to be specific and isolated to the company. Withhold release orders on US imports have been placed on subsidiaries of two other Malaysian companies within the past 1 year. While Top Glove, and potentially other glove companies, currently have the financial capabilities to resolve these matters, that might prove a taller order for some other labor-intensive, export-oriented industries in the country, which could see whole sectors with systemic importance to the economy struggle for a prolonged period of time. I truly hope (probably against hope) this scenario doesn't materialize.

Important disclaimer: Any views expressed are for informational and discussion purposes only. None of this information is intended as, and must not be understood as, a source of advice. It is imperative that you always do your own research and that you make any decisions based on your personal situation and your own personal understanding.