MPOA urges govt to lift freeze on foreign worker recruitment for palm oil industry at ‘breaking point’
KUALA LUMPUR (Sept 9): Palm oil planters have urged the government to unfreeze the recruitment of foreign workers as an acute shortage has and would continue to result in loss of revenue for planters and income to the government due to loss in palm oil yield, according to Malaysian Palm Oil Association (MPOA) chief executive officer (CEO) Datuk Mohd Nageeb Wahab.
“Our single biggest problem today is the acute shortage of workers, namely harvesters … I would dare say the shortage since the [foreign labour] intake freeze took effect in March 2020 has increased to more than 75,000 workers. This shortage translates into an alarming 20% to 30% shortfall in our potential production. In 2020, as a result of this shortfall, the industry’s loss of revenue is estimated at about RM10 billion to RM12 billion on the back of an average crude palm oil (CPO) price of around RM2,685 per metric ton (MT).
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