Crisis of Workers, Palm Oil to Manufacturer Industries In Malaysia Lost the Potential Profits

Foto by Aceng Sofian/sawitfest 2021
Crisis of Workers, Palm Oil to Manufacturer Industries In Malaysia Lost the Potential Profits

InfoSAWIT, KUALA LUMPUR – The companies in Malaysia, starting from palm oil to semi-conductor companies should reject many orders and forget to get billons of potential case for they are lack of one million workers and could threaten economic recovery in the country.

Though the country re-opened worker recruitment in February 2022 after it was forbidden because of Covid-19 pandemic, migrant workers are not significant still because the country is late to get negotiation with Indonesia and Bangladesh about workers’ protection.

Malaysia really depends on export sectors, and main supply chain globally. The country really depends on millions of foreign workers in factory, palm oil, and service sectors. The people of the country do not want to work in the three sectors because they are dirty, dangerous, and difficult. The producers which develop one fourth of the economy are worried of loosing costumers from other country for the increasing economy.

“Though the optimism is bigger than the prospect and increasing selling, some companies are late to produce the orders,” President of Malaysia Producer Federation, Soh Thian Lai said, as quoted from business-standard.

Executive Director of United Plantation said, this is something worried. “This condition is like a football game, against 11 men but only seven men can be substituted,” he said.

Malaysia, at least, is lack of 1,2 million workers in manufacturer, palm oil, and construction sectors. This gets worse because the demands increase as the pandemic cases slow down, as the government’s data in industrial sectors, showed.

The producers also mentioned, they are lack of 600 thousand workers. The construction sector needs 550 thousand ones, palm oil sector needs 120 thousand ones, chip producer needs 15 thousand workers and could not produce at all though the globe is lack of chip. Medical hand glove sector needs 12 thousand workers.

Palm oil industries which delivered 5% to the economy in the country also reported, 3 million tons of fresh fruit bunch should not be processed in this year because of getting rotten and unharvested. It means, the industries got loss about more than US$ 4 billion.

Rubber hand glove industries predicted to lost about US$ 700 million in this year because of the lack of workers.

Ministry of Human Resources in Malaysia which is in charge to get foreign workers never delivered comment from what Reuters questioned about the lack of workers and the economic impact.

In April 2022, Minister M. Saravanan said, many companies urged to hire 475 thousand migrant workers but the ministry only approved 2.065 men, rejected others because of uncomplete information or lack of obedience to every regulation. (T2)