KUALA LUMPUR (Feb 28): The shortage of some 40,000 foreign workers in the palm oil sector has significantly impacted yields, leading to an estimated loss of RM7.9 billion in export value for Malaysia, according to Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani.

Recognising palm oil as being Malaysia's most exported commodity, Johari emphasised that the palm oil plantation sector cannot afford to face a labour shortage.

"However, based on the feedback received by the ministry, the plantation sector is currently grappling with a shortage of 40,000 workers. When translated into economic terms, assuming each harvester can cut one metric tonne of palm fruit per day over 260 days per year, we potentially face a staggering loss in export value of RM7.9 billion," Johari said during the oral question and answer session in Dewan Rakyat on Wednesday.

Johari was responding to Datuk Mohd Shahar Abdullah (Barisan Nasional-Paya Besar), who enquired about the actions taken by the ministry to address the labour shortage.

Johari explained that the Ministry of Home Affairs and the Ministry of Human Resources have frozen entry of foreign workers into Malaysia, excluding the plantation sector.

"One of the dilemmas we are currently facing is that foreign workers arriving in Malaysia are primarily for the manufacturing and service sectors, and they are not inclined to work in the plantation sector. Nevertheless, we are making efforts to persuade them to consider employment in the plantation sector," Johari added.

Meanwhile, Johari reported that Malaysia’s average export of crude palm oil (CPO) stood at 184.27 million metric tonnes from 2013 to 2023, along with crude palm kernel oil (CPKO) at 2.2 million metric tonnes during the same period.

On bulk exports of CPO, Johari said that this reached 155 million metric tonnes during the same period, averaging 18 million metric tonnes per year, while non-bulk exports accounted for 29.27 million metric tonnes, averaging 2.66 million metric tonnes per year.

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