The company will reimburse 15,078 current foreign workers an aggregate sum of RM38.5m 

by PRIYA VASU / Pic by BLOOMBERG

SIME Darby Plantation Bhd (SDP) will set aside some RM82 million to reimburse the recruitment fees its current and past foreign workers would have paid to get a job with the plantation group. 

SDP’s group MD Mohamad Helmy Othman Basha said the move comes following comprehensive audits taken by independent organisations on its behalf following the imposition of the Withhold Release Order by the US Customs and Border Protection in December 2020. 

“This entire exercise has certainly been a learning experience for us. We have spent a long hard year auditing, examining, and occasionally, unearthing entrenched practises that needed to be improved or changed,” said Mohamad Helmy. 

He added that it has come to SDP’s attention that some of its foreign workers may have been charged additional fees by thirdparty recruitment agents, and SDP’s board of directors agreed to reimburse our foreign workers. 

These fees are unreported payments charged by agents, subagents or other third parties to our foreign workers in countries of origin, in contravention of SDP’s zero recruitment fee policy. 

In November 2021, after reimbursement amounts were calculatedbyanindependentthird party, the Board approved a provision of RM82.02 million to reimburse recruitment fees to current and past foreign workers. 

The reimbursement amounts were calculated by taking into account the typical foreign worker reported recruitment fees and related costs by nationality. 

SDP will reimburse 15,078 current foreign workers an aggregate sum of RM38.55 million. 

Additionally, the company is setting aside a sinking fund amounting to RM43.47 million to reimburse 19,565 former foreign workers. 

All reimbursements will be paid in a single lump sum payment to foreign workers. 

Current foreign workers will be informed of the reimbursement details in writing and receive their monies on Feb 17, 2022. 

The 15,078 workers came from Indonesia, India, Bangladesh, Nepal, Myanmar, Cambodia, Sri Lanka and Pakistan. 

SDP, in a release yesterday, added a Sinking Fund Governance Committee has been established to oversee the reimbursement process to former foreign workers. 

SDP is also engaging law firms in each country of origin to manage the disbursement of funds. 

“The full costs of these legal firms will be borne by SDP. Our foreign workers will not be required to pay any fees to receive their money. 

The sinking fund established for former foreign workers covers all those who have worked for SDP going back to Nov 1, 2018. They are from Indonesia, India, Bangladesh, Nepal, Myanmar, Sri Lanka and Cambodia,” he added. 

He further added that SDP had committed to ensuring zero recruitment fees since 2017, with the implementation of its Human Rights Charter. 

“However, in light of the fees that foreign workers have to pay, unknown to us and despite the existence of the zero-fee policy, SDP has revised and developed a more robust system covering the entire process of appointing recruitment agents, working with independent migrant worker rights specialist Andy Hall,” said Mohamad Helmy. 

In August last year, SDP rolled out its revised Responsible Recruitment Procedure to focus on piloting the new procedure in its upcoming Indonesian worker recruitment activities. 

Additionally, a new social welfare and services department has been established. 

This dedicated team will be responsible for overseeing the implementation of policies and procedures related to the wellbeing and safety of workers, ensuring that day-to-day Upstream Operations comply with internationally recognised best practises. 

“SDP is committed to respect, support and uphold the fundamental human rights of those in and around our operations. These commitments have been linked in our Human Rights Charter, the core values of our business, and are governed by our Code of Business Conduct, as well as Group Policies and Authorities,” said Mohamad Helmy. 

He added in addition to proactively reporting its human rights progress through the UK Modern Slavery Act Statement, SDP also adheres to the Universal Declaration of Human Rights and the United Nations Guiding Principles on Business and Human Rights. 

Like SDP, more local companies haveadoptedenvironmental,social and governance (ESG) business standards for better investment and growth opportunities. 

MSM Malaysia Holdings Bhd and Wilmar Sugar Pte Ltd signed an agreement in December 2021 to collaborate in the establishment of a sustainable sugar supply chain. 

The sustainable sugar programme, which comes on the heels of Wilmar Sugar’s parent company, Wilmar International Ltd (Wilmar), launching its No Deforestation, No People Exploitation (NDPE) Sugar Policy in September 2021, MSM said in a statement yesterday. 

MSM and Wilmar Sugar will embark on joint efforts to assist and support each other to pilot an approach to enable sustainable raw sugar sourcing within MSM and Wilmar Sugar’s joint supply chain by focusing on traceability reporting of sugar supplies and monitoring of sustainability performance based on the NDPE Sugar policy. 

MSM Group CEO Syed Feizal Syed Mohammad said the outcome from collaborating with Wilmar Sugar, one of the prominent players in the sugar commodity, and its NDPE Sugar sustainability programme enables MSM to establish concrete raw sugar traceability and sustainable practises in line with MSM’s ESG framework commitment. 

“We are moving rapidly in ensuring that we embody sustainability in our operation and business. Therefore, it is important to ensure sustainability starts with the supply chain ecosystem. MSM targets to source sustainable raw sugar for local market production to begin with. This collaboration with Wilmar Sugar takes us one step further in enhancing MSM’s ESG commitment and presence to wider marketsgloballyasasustainablerefiner of premium sugar and will further strengthen our position as a top 8 integrated sugar refiner in the world,” said Syed Feizal. 

Wilmar’s group head of sugar who is also the MD of Wilmar Sugar Pte Ltd Jean-Luc Bohbot said, the latest collaboration will provide both companies with the ability to address consumers’ increasing demand for a sustainably sourced product. The launch of the NDPE Sugar programme delivers on customer demands for responsibly sourced sugar and fosters better inclusivity for smallholder sugarcane growers. 

He added that sustainability within the sugar sector has so far focused only on third party certification which has made it difficult for smallholders around the world to be part of the sustainability supply chain. 

Through this programme, MSM will improve its sustainable values and manifest its support towards Sustainable Development Goal (SDG) 12, Responsible Consumption and Production ― Ensure sustainable consumption and production patterns, one of the SDGs by the United Nations. 

Currently, MSM operates two sugar refineries, one in Prai, Penang with an annual production capacity of 1.05 million tonnes of refined sugar, the country’s largest sugar refinery, and in Tanjung Langsat, Johor with an annual production capacity of one million tonnes of refined sugar, set to ramp up its production in 2022. 

Wilmar Sugar operates an integrated sugar business across the entire value chain from sugar cane plantations to processing, merchandising and distribution of sweetener products. It operates sugarmills,cogenerationplants, ethanol distilleries and sugar refineries across the globe, linking key origins and destinations through a market-leading team.