KUALA LUMPUR (Jan 14): The Ministry of Plantation and Commodities has indicated that it may consider reapplying for another special foreign worker quota for the plantation industry in 2025 to help planters address the labour shortage.
This, however, will be guided by the urgency of industry needs and feedback from industry stakeholders, its deputy minister Datuk Chan Foong Hin told reporters at the Palm Oil Economic Review & Outlook Seminar (R&O) 2025 on Tuesday.
The ministry had applied for a one-time special quota of around 60,000 foreign workers in 2024 to help alleviate the acute worker shortage, but was granted only 24,570 foreign workers.
"The long-term strategy remains focused on advancing mechanisation and automation within the plantation industry for enhanced efficiency and productivity," said Chan, adding the government does not want to forever rely on cheap foreign labour as this is unsustainable.
The one-off special quota last year had helped to reduce worker shortage in the industry, according to Malaysian Palm Oil Board (MPOB) director general Datuk Dr Ahmad Parveez Ghulam Kadir. MPOB data showed that total workers for the industry rose 2.3% last year, with a 3.3% increase in harvester availability. This reduced the worker shortage by 11.8%.
However, ongoing restrictions, including the freeze on foreign worker quotas, continue to pose challenges. Additionally, the government’s new requirement for compulsory contributions to the Employees Provident Fund (EPF) for foreign workers has added cost pressures on plantation operators.
Apart from the plantation sector, the manufacturing, construction, and services sectors also depend heavily on foreign labour.
The country's largest share of foreign workers mostly come from Bangladesh (37.8%), followed by Indonesia (23.7%), and Nepal (16.7%), according to data from the Ministry of Finance.