KUCHING, June 6: The Malaysian Estate Owners’ Association (MEOA) asserted that with no issuance of the announced 32,000 extended permits for workers, except for the recent small number of workers for some larger plantation groups, there will be even less palm oil available along with the ban of exporting palm oil from Indonesia, leading to a 5-10 per cent loss in earnings.
According to a statement issued today by MEOA, the two oil palm regions in Malaysia with massive labour shortages are Peninsular Malaysia and Sarawak, which account for 74 per cent of Malaysia’s total oil palm production area.
“Even if there are fresh fruit bunches (FFB) on the trees, they are not being harvested, or are not harvested within the specified norm of 12 to 15 days round.
“Some areas are even taking up to 35-40 days to render the FFB to be overripe or rotten,” the association said.
The MEOA asserted there is a sustained and growing demand for palm oil in the global edible oil equation.
“The sad reality is that Malaysia is missing the golden opportunity presented on a platter as we are not able to cope with the harvesting of all the oil palm bunches at the appropriate harvesting rounds set against the present limited labour force.
“Crop losses translate into losses in revenues and also taxes for the government coffers along with losses in additional multiplying and spin-off economic activities for the country,” it explained.
The association added that the acute labour shortages will also affect future earnings as with limited labour force, many plantations would try to manage their labour productively by channelling their scarce human resources focused merely on harvesting of crops.
“Prior to the start of the Covid-19 pandemic, it was highlighted that the plantation industry was short of 32,000 workers, and over the last 27 months since then, the estimated shortage of workers for both Peninsula Malaysia and East Malaysia now stands at 120,000.
“MEOA welcomes the government’s announcement that they were going to issue 32,000 extended work permits and a further 20,000 work permits.
“MEOA would like to implore on behalf of all growers that the government expedite the issuance of the balance of the 68,000 permits,” it remarked.
The association also requested that the government issue permits that address not only the needs of Peninsular Malaysian planters, but also those of Sabah and Sarawak planters, given the uniqueness of the procedures involving the two States.
Additionally, the MEOA noted the priority is to ensure the modus operandi to bring in workers from Lombok is firmed up and the entire process can kick-start without delay so that all companies, be it big, medium or small players, will benefit from the return of the guest workers into Malaysia.
The association also said it remains optimistic that the issuance of all the work permits would also be issued to mid- and smaller-sized plantations with the same urgency and expediency.
“In so far that recruitment applications by any planters fulfil all the necessary requirements to bring in the guest workers, transparency should prevail and no favouritism should be accorded,” MEOA clarified.
Furthermore, the association noted that set against a national shortage of an estimated 1.25 million workers, the relevant authorities should also in parallel work out a system to prevent workers absconding from the plantation industry.
“In the advent of the 52,000 and further 68,000 work permits that will be issued, the question is where are these workers coming from, and if there are any consideration to explore other source countries?
“There is also the big question of logistics to bring in a large number of workers in a short time.
“All the stakeholders, especially the relevant authorities must quickly connect all the dots and make the return of the guest workers a reality, sooner than later,” MEOA emphasised. — DayakDaily
