The Malaysian government is taking steps to ensure a stable workforce and explore innovative solutions to tackle the decline in palm oil prices and reduce reliance on foreign workers.
The Malaysian government, through the Plantation and Commodities Ministry, is dedicated to ensuring that oil palm plantations have an adequate workforce. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani highlighted that a shortage of workers could result in unharvested ripe palm fruits, directly impacting production.
He emphasized that for smallholders, the government will prioritize the use of high-quality planting materials and the adoption of best agricultural practices to enhance yields. This approach aims to reduce production costs and stimulate demand in the global market.Johari addressed a question posed by Edwin anak Banta (GPS-Selangau) regarding the ministry's strategies to mitigate the decline in palm oil prices. He explained that commodity prices are inherently influenced by supply and demand dynamics, making it impossible to fix them. He stressed that maintaining a balance between these factors is crucial for ensuring production growth and cost reduction, particularly when the quality of the harvested fruits is high.Bakri Jamaluddin (PN-Tangga Batu) inquired about the effectiveness of the Institute of Malaysian Plantation and Commodities and the Mechanisation and Automation Research Consortium of Oil Palm in reducing Malaysia's reliance on foreign workers. Johari acknowledged that mechanization was introduced as a response to the lack of local interest in plantation work. He stated that while technology has progressively reduced the dependence on manual labor, it hasn't completely eliminated the need for it. Johari further pointed out that numerous innovations have emerged in the plantation sector, but some lack the scalability for widespread implementation. In addition to mechanization, he emphasized the significance of a replanting rate of at least 4% to sustain continuous productivity. Currently, the replanting rate stands at only 2% to 3%, indicating that a substantial portion of oil palm trees have reached maturity
PALM OIL WORKFORCE MECHANIZATION PLANTATION COMMODITY PRICES
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