InfoSAWIT, KUALA LUMPUR – Palm oil sector in Malaysia would potentially increase in the production and income up to RM 4 billion (US$ 845,84 million) this year because the Government of Malaysia has published permit to recruit foreign workers, according to a statement from industrial group on Wednesday.
Prior the Government of Malaysia froze to recruit migrant workers to review recruitment process. But this week, it announced the plan to deliver permits for foreign workers to solve the lack of 40 thousand workers in agricultural sectors.
Executive Director of Malaysian Palm Oil Association, (MPOA), Joseph Tek said that palm oil production would escalate about 5,2 million metric tons of fresh fruit bunch this year if half of 40 thousand workers would be working in harvesting process.
“This would be good news and would significantly deliver the good for palm oil industries in Malaysia,” Tek said, as InfoSAWIT quoted from Reuters.
About 80% of plantation workers in the country are migrant ones namely from Indonesia but the lack of workers made the country loss about RM 20 billion in 2022.
The lack of workers had something to do with crude palm oil (CPO) production though it increased a little bit about 0,5% to be 18,55 million metric tons last year. Tek continued, palm oil industrial regulator in Malaysia predicted, CPO production could be about 18,75 million metric tons this year, 2024.
The decision to deliver permits for recruiting foreign workers would be the positive to solve the lack of workers and escalate productivity in palm oil sectors in the country. This would escalate the increasing economy this year. (T2)