Estate Operators Urge Malaysia Government To Drop Foreign Worker Hiring Freeze

The Malaysian Estate Owners Association (MEOA), which represents the interests of those owning small and medium-sized estates in Malaysia, said even without the current freeze on the recruitment of foreign workers, the majority of estates in Malaysia are operating on an estimated average of 85% of the required number of workers.

Small- and medium-sized estate operators in Malaysia are urging the government to withdraw its freeze on the recruitment of foreign workers, in order to allow the plantation industry to operate at an efficient level.

“The freeze creates further scarcity of workers, thus negating the ability of the industry to operate at an efficient and competitive level.

“This is further compounded by the fact that local Malaysians are reluctant to work at these same jobs now undertaken by foreign workers,” it added.

MEOA’s appeal follows that of the Malaysian Palm Oil Association, which had on Monday urged the government to lift the freeze on the recruitment of foreign workers. The government had decided to suspend the recruitment of all foreign workers to Malaysia since February as it assesses gaps in the labour force.

MEOA noted that oil palm produce are perishable and thus, a lack of workers to harvest the crop would mean an unrecoverable loss of income.

“(This is on top of the fact that) the plantation had already incurred huge upfront costs in planting, applying fertilisers and other field upkeep to maximise the production of the palms,” it said.

“In addition to the above biological related losses, increases in cost of production is already squeezing into the margins of any potential derived profits.

“This include the increase in the costs of fertilisers and other inputs essential to the running of the industry by 28-30 % due to foreign exchange fluctuations in which many planters have already committed, the windfall profit levy in Peninsular Malaysia and the anticipated further increase in minimum wages soon,” it added.

Planters’ margin are further affected by the low production attributed to the multiple lagged effect arisen from the El Nino phenomenon.

While it recognises and acknowledges the industry’s heavy reliance on foreign workers, MEOA proposes that the industry and the government work together to draw up a long-term sustainable plan to solve this problem.

“In the meantime, MEOA appeals to the government to repeal its decision to freeze recruitment of foreign workers,” it said.

News source: theedgemarkets.com