Palm oil industry to rethink reliance on foreign workers

Palm oil companies are facing a shortage of 37,000 workers, which makes up nearly 10% of their total workforce.

The Malaysian Palm Oil Association believes this figure could balloon to as high as 70,000 when the borders reopen. Producers fear the labour shortage will impact this year’s output by delaying the harvest of perishable fruit, which would allow rival producers to extend their lead as the number one producer globally.

These producers worry that while hiring locals may save on recruitment fees and the cost of flying in foreign workers, local workers may not commit to the industry or take on the hardest jobs, which are often seen as dirty and dangerous. Some companies have resorted to poaching workers from rivals, with an official at a mid-size Sarawak estate who declined to be named saying, “I need to do this to survive”, despite unethical concerns.The shortage has also seen existing efforts ramped up to mechanise the harvesting process.

IOI Corp said it had a similar plan in place that aims to mechanise fertilising and pesticide spraying and automate mill operations.

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