“This targeted approach ensures that the industry benefits from individuals possessing the necessary robust skills and experience, consequently contributing to increased efficiency and productivity of the oil palm sector.” – Malaysian Estate Owners Associations (MEOA)
KUALA LUMPUR (Jan 24): The plantation industry must not bear the burden of absorbing excess workers from unrelated fields in light of the economic slowdown in other sectors, the Malaysian Estate Owners Associations (MEOA) has cautioned.
Recently, the Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani had said that Putrajaya would allow the hiring of foreign workers in the plantation sector.
In applauding the decision, MEOA suggested that foreign workers should be recruited from countries that specialise in plantation work to uplift the industry and boost income levels for the industry and the nation.
“The distinct skill sets required in the plantation sector, characterised by its demanding and rigorous environment, differ significantly from those in sectors such as semi-conductors, furniture and manufacturing. It is crucial to acknowledge that these skills may not be directly transferable to the challenges posed by the plantation industry.
“This targeted approach ensures that the industry benefits from individuals possessing the necessary robust skills and experience, consequently contributing to increased efficiency and productivity of the oil palm sector,” it said in a statement on Wednesday.
Foreign worker relaxation could boost industry revenue by RM4 billion — MPOA
Meanwhile, the Malaysian Palm Oil Association (MPOA) said Johari's announcement was a relief to the palm oil industry as it has been grappling with a substantial shortage of 40,000 workers, noting the move could translate into a RM4 billion boost to revenue.
According to MPOA, the labour shortage had led to crop losses and deteriorated field conditions, causing an estimated revenue loss of RM20 billion in 2022. The deficit, which persisted into 2023, further resulted in negligible improvement in the fresh fruit bunches (FFB) or crude palm oil (CPO) production post-pandemic.
“Assuming half of the [40,000] workers are allocated to harvesting duties, constituting a workforce of 20,000 dedicated harvesters, there is an opportunity for substantial economic impact.
“Considering the efficiency of each harvester cutting one tonne of FFB per day over 260 working days per year, and with the current FFB price at RM750 per tonne, the potential recovered FFB amounts to a substantial 5.2 million tonnes, translating into a staggering revenue of close to RM4 billion,” said the association in a statement on Wednesday.
April CPO futures were trading at RM3,992 per tonne.
Since Jan 15, the Ministry of Plantation and Commodities has allowed applications from plantation companies to hire foreign workers. The ministry said companies that intend to hire foreign workers must ensure that their employment requirement is specifically in the plantation sector and not in other sectors.