FGV Holdings Berhad (FGV) is now permitted to export palm oil and palm oil products to the United States effective January 15, 2026, following a modification of the Withhold Release Order (WRO) by the US Customs and Border Protection (CBP).
This decision ends the restrictions that previously prevented FGV's products from entering the US market due to concerns about labor practices.
In an official statement from CBP, FGV's products, including those from its subsidiaries and joint ventures, are now permitted to enter the US market provided that the company complies with all applicable labor laws and regulations in the country.
The modification of the WRO reflects recognition of the comprehensive improvement efforts that FGV has undertaken to improve its labor practices and supply chain governance.
FGV expresses its gratitude to CBP for its guidance and cooperation throughout the WRO re-evaluation process, in addition to appreciating the continued support from the Malaysian government and other stakeholders.
This result was achieved as a result of the company’s continuous efforts to align its operations with local and international labor standards, including requirements outlined by the International Labor Organization (ILO).
Over the past few years, FGV has implemented a comprehensive action plan to ensure that there is no element of forced labor and child labor in its operations.
Key measures include tightening recruitment procedures, ensuring ethical recruitment principles are adhered to, and implementing a recruitment fee reimbursement program for tens of thousands of active and former employees.
The company has also improved worker welfare by upgrading housing, adding new housing units, expanding access to clean drinking water, and providing internet facilities in remote plantation areas.
At the same time, a digital system has been introduced to monitor compliance with labor standards, including working hours, rest days, and minimum wages, to ensure ongoing transparency and compliance.
FGV has also emphasized two-way communication channels with workers through the establishment of estate-level communication committees and strengthened grievance mechanisms, including the use of a mobile application that allows workers to submit complaints confidentially.
Collaboration with the National Union of Plantation Workers has also been strengthened to protect workers’ rights to freedom of association.
According to FGV Group Chief Executive Officer, Dato’ Fakhrunniam Othman, the WRO revision is a significant achievement that reflects the company’s commitment to operating ethically and responsibly. He stressed that the reforms implemented not only meet compliance requirements, but also strengthen the protection of human rights and sustainability in every aspect of the group’s business.
With the relaxation of these restrictions, FGV regains access to key markets such as the United States, potentially boosting export prospects and investor confidence.
At the same time, the decision sends a positive signal to the Malaysian palm oil industry that compliance with global labor and ESG standards is a critical factor in maintaining competitiveness and international market access.
