September 21, 2021

Sime Darby Plantation Accepts Tempias, Prohibition of Hiring Foreign Workers Extended

 Sime Darby Plantation Bhd's share price declined 9.47% during the trading session on Bursa Malaysia yesterday which was influenced by the sell -off between FBM KLCI shares.

The fall came as investors assessed the impact of the extended ban on the hiring of foreign workers on plantation groups and it was also hampered by environmental, social and governance (ESG) concerns.

Other plantation sectors also continued to decline yesterday such as Kuala Lumpur Kepong Bhd declined 1.78% to RM19.80 and IOI Corp Bhd fell 0.53% to RM3.75.

On September 19, Human Resources Minister Datuk Seri M Saravanan announced that the government had reached a decision not to hire foreign workers at all until the end of 2021.

UOB Kay Hian stated that Malaysia had reached an agreement in May to bring in 32,000 foreign workers for the sector but the process had been delayed.

However, as of 11.05am, Sime Darby Plantation's share price had risen 3.77% to RM3.58 in today's trading session, accumulating a market capitalization of RM24.41 billion.

Sime Darby Plantation and FGV Holdings Bhd also received tempias following the import ban by US Customs and Border Protection (GST) on charges of using forced labor.

As a result, Sime Darby Plantation is intensifying efforts to expedite the appraisal process and hopes that it will be able to reach final results by early 2022.