Shares of Sime Darby Plantation Bhd (SDP) declined 2.13% in early trading today following restrictions imposed by the US Department of Customs and Border Protection (GST) on its products in connection with alleged use of forced labor in its production process.
Bernama reported that as of 9.56am, Sime Darby Plantation declined 11 sen to RM5.06, with 70,400 shares traded.
US GST has issued a Release Detention Order (WRO) on palm oil and products containing palm oil produced by SDP and its subsidiaries, joint ventures and affiliated entities, enabling it to withhold shipment based on suspected forced labor involvement.
In a statement yesterday, GST said the WRO was issued against the SDP based on information that reasonably showed the presence of all 11 indicators of the International Labor Organization forced labor in the SDP production process.
Last September, GST issued a separate WRO against another Malaysian palm oil producer, FGV Holdings Bhd.
