Which companies are covered by the WRO under SDP’s group structure?

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The US CBP's Withhold Release Order Encompasses Sime Darby Plantation and its Associated Entities

The United States Customs and Border Protection (CBP) has issued a Withhold Release Order (WRO) that specifically targets palm oil and products containing palm oil originating from Sime Darby Plantation (SDP) and its associated entities. This order allows for the detention of shipments if there is a suspicion of forced labour being involved in their production process.
Scope of the Withhold Release Order

The WRO against Sime Darby Plantation is based on information indicating the presence of all 11 International Labour Organization's forced labour indicators within SDP's production operations. This comprehensive assessment led the CBP to implement the order, which directly impacts the flow of SDP's palm oil products into the United States.
Impact on Sime Darby Plantation's Share Value

Following the announcement of the WRO, Sime Darby Plantation experienced a decline in its share value. In early trading on the day of the report, the company's shares fell by 2.13 per cent, with a loss of 11 sen, bringing the price to RM5.06. This market reaction underscores the significant implications of such trade restrictions on publicly listed companies.
Precedent of Similar Action Against Malaysian Producers

This action against Sime Darby Plantation is not the first of its kind involving Malaysian palm oil producers. In September, the CBP had previously issued a similar WRO against FGV Holdings Bhd, another prominent Malaysian palm oil company, also in response to allegations concerning forced labour practices.

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Which companies are covered by the WRO under SDP’s group structure?

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