Hartalega, the second largest medical glove manufacturer in Malaysia by market value, said in a statement it is set to reimburse up to 40 million ringgit in fees as part of its commitment to social compliance.
Last month, the U.S. Customs and Border Protection (CBP) barred imports from two units of Top Glove Corp, an action the authority takes on companies suspected of using forced labour. Top Glove has since submitted a petition and said it has made progress in engagement with the CBP.
The U.S. is a key market for Hartalega.
"We target to begin remediation by the fourth quarter of 2020, to be completed over the span of up to 24 months," Chief Executive Officer Kuan Mun Leong said, adding that the company is working with an external independent party to review the plan.
(Reporting by Liz Lee; Editing by Kim Coghill)