LAST Thursday, crude palm oil futures breached RM4,000 per tonne for the first time since 2008. But despite this positive upward trend in prices, a cloud still hangs over the industry following another ban by the US Customs and Border Protection (CBP), this time on palm oil and products of Malaysian plantation giant Sime Darby Plantation Bhd on allegations of forced labour. The ban came into effect on Dec 30, 2020.
This would make Sime Darby Plantation the second Malaysian plantation company to be slapped with a CBP ban, the first being FGV Holdings Bhd last September, which saw a withhold release order (WRO) being issued on its palm oil and products also due to allegations of forced labour.