Top Glove works on dorm issues, biz remains good

A shareholder says the company will provide better and improved accommodations for their workers

By HARIZAH KAMEL / Pic By RAZAK GHAZALI

TOP Glove Corp Bhd will look into upgrading accommodation facilities including buying apartments near its production facilities to house its workers as part of its strategy to improve housing situation and its battered image.

The investigation surrounding Top Glove providing poor accommodations for its workers did not sit well with its some of its shareholders.

A shareholder of the company who requested anonymity told The Malaysian Reserve (TMR) the scandal was a main concern among Top Glove’s shareholders and questions on it were raised during the company’s 22nd AGM yesterday.

The factor along with the rollout of vaccines for the Covid-19 pandemic has led to the selling pressure on Top Glove shares, with the rubber glovemaker’s share price falling from RM9.60 on Oct 19, 2020, to RM5.76 at close yesterday.

The fall would have been more severe if not for the share buybacks undertaken by the company on other high profile buyers.

Last December, authorities opened 21 investigation papers on several companies for breaching the Minimum Standards of Housing, Accommodation and Employee Facilities Act 1990 (Act 446).

Of the 21 investigation papers, 19 were on six groups of companies under Top Glove.

“Top Glove said they are addressing the issue. They said they have short-, mid-and long-term plans for it.

“The company said they will provide better and improved accommodations for their workers,” said the shareholder.

He also disclosed that shareholders are also concerned about the trend for the average selling price (ASP) of gloves for the coming financial year, to which the company said it expects ASP to go higher.

“A question was also raised on what would happen to the demand for gloves when the Covid-19 vaccines are distributed to the masses, whether demand would go down.

“Top Glove management believes that as people are concerned over hygiene, glove demand will remain strong moving forward,” he told TMR.

Top Glove reiterates its plan to become a Fortune Global 500 company by 2035, where its revenue is expected to reach US$35 billion, equivalent to around RM140 billion.

“The company is working towards it. It is a very ambitious plan,” he added.

In a statement issued by Top Glove yesterday, all 12 resolutions as set out in the AGM notice dated Nov 13, 2020, were duly carried by way of poll. A total of 1,732 shareholders logged in for the virtual AGM.

On Monday, the world’s largest glove manufacturer also announced plans to pay a special dividend, which will account for 20% of its net profit, in addition to its existing dividend policy of a 50% dividend payout ratio on profit after tax and minority interests, for the second quarter (2Q), 3Q and 4Q of its financial year 2021.


 

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