InfoSAWIT, KUALA LUMPUR – Days before, Minister of Human Resources, Malaysia, M Saravanan announced that the foreign workers recruitment freezing would last till the end of this year. The reason to do it is to minimize the numbers of foreign workers and to prioritize the local workers to fulfill the available vacancy.
In Malaysia there are about two million legal foreign workers. The manufacture sector hired the most, then the construction, and palm oil plantation.
Actually the policy has been criticized by palm oil plantation sectors in Malaysia. Before the corona virus (Covid-19) pandemic, the industries, such as, the construction, and palm oil plantation were lack of workers and freezing the foreign worker recruitment would make it worse.
CEO Malaysian Palm Oil Association (MPOA), Datuk Nageeb Wahab said that the plantations in Malaysia have lost up to 25% of the crude palm oil (CPO) potential because of the lack of workers. This would be worse for the next months.
He also mentioned that palm oil plantation industries could loss about RM 7,5 billion per year if the average progress reaches i 15%, or equal to three million tons of CPO within about RM 2.500 per ton in average.
For now, Nageeb said, the palm oil plantation would solve the lack of workers by hiring the general workers to other maintenance and to collect the fresh fruit bunch. “But it is not enough and most of the plantation companies should exist within bigger losses,” he said, as quoted from The Edge Markets.
If the policy was revoked and the workers start working and being trained, at least, it would spend one semester to be normal again. (T2)