jpnn.com, KUALA LUMPUR – Palm oil business operators in Malaysia urge the government to allow foreign workers (TKA) to return.
“If they are not allowed to enter, the palm oil industry in Malaysia will suffer,” said the association, through a written statement, Friday (6/26).
The request, according to the association, aims to save the oil palm business and make it easier for companies to be able to immediately recruit foreign employees.
The palm oil industry in Malaysia faced labor shortages during the pandemic. Because, 70 percent of plantation workers and other related sectors depend on foreign workers, especially workers from Indonesia and Bangladesh.
Malaysia ranks second for the world’s largest palm oil producer and palm oil exporter.
Thousands of foreign workers returned to their home countries, leaving plantations, because authorities in many countries closed borders during the COVID-19 pandemic. This condition adds pressure to the palm oil sector, where 2-3 percent of foreign workers return each year.
“The main concern is that the harvest season will arrive shortly, a few months from now, and the palm oil industry is very dependent on its workers,” said the association representing small and medium scale plantation owners.
The association said the decline in palm oil production could reduce the supply of crude palm oil (CPO) and palm kernel oil (PKO) because extraction rates continued to decline after this year. Although the problem could increase the price of CPO, the association warned the government of an empty plantation could cause the palm oil industry to plummet. (ant / dil / jpnn)
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