KUALA LUMPUR, March 8 — Human Resource Minister Datuk Seri M. Saravanan told the Dewan Rakyat today that the US’ ban on Sime Darby’s palm oil imports was not because of forced labour, but a failure to report accidents involving its migrant workforce.

Saravanan said the US Customs and Border protection ban was likely based on the government-linked firm’s failure to report accidents to the Labour Department within the required ten days, a violation of Section 13(2) of the Workmen’s Compensation Act 1952.

Sime Darby Plantation announced on January 28 that the US Customs and Border Protection had filed a notice of finding and issued a withhold release order banning imports of its palm oil products, because they were made either wholly or in part with palm produced using convicts, forced or indentured labour. 

The finding was primarily aimed at SDP’s Malaysian operations.

"The investigation conducted by the Human Resources Ministry through the Peninsular Malaysia Labour Department found that Sime Darby Plantations did not violate any laws relating to forced labour,” Saravanan said in reply to R. Sivarasa, MP for Sungai Buloh from PKR.

"However, there was a breach of Section 13(2) of the Workmen’s Compensation Act 1952, that is failure to report accidents involving migrant workers within 10 days of the accident date,” the minister added.

Sime Darby was among several Malaysian companies slapped with the CBP ban over allegations of forced labour last year, and this came shortly after the CBP modified its ban order against Top Glove in September, 2021.

The agency said the WRO modification was made after it was satisfied that the glove maker had addressed all indicators of forced labour identified at its Malaysian facilities.

In Sime Darby’s case, the CBP told Malaysian reporters in a town hall meeting organised by the US Embassy here it "looks forward” to working with the company and reviewing its independent audit report, expected to be completed soon.

Saravanan told the Dewan Rakyat today the Malaysian government had taken urgent steps to address the allegations by CBP, like holding regular inspections and undertaking joint action with the police to probe elements of exploitative practices.

Rights groups said the ban had shed light on the exploitative behaviour of Malaysian employers, as it revived calls for swift reform in employment practices involving migrant workers.