MEOA asks govt to exempt plantation industry from freeze in hiring foreign workers

In a statement today, the MEOA said plantation industry relies almost exclusively on foreign workers for field work, especially in harvesting oil palm fruit bunches.

It said the implementation of movement control order (MCO) has worsened the shortage as the closure of borders prevented workers from returning after their home leave, and prevented new replacement workers from coming in.

The losses are huge and potentially can increase, considering there are nearly six million hectares under oil palm cultivation with 39 per cent comprising smallholdings (there are 256,000 independent smallholders), it said, adding that other plantation commodities like rubber and cocoa are similarly affected.

The MEOA cited a 2018 study by the Institute of Labour Market Information and Analysis (ILMIA) which found that the plantation and agriculture industries have the highest dependence on foreign workers, and their research concluded that sectors with very high dependency ratio will find it difficult to substitute foreign workers with locals.

The study also found that plantation's share of foreign workers shrank steadily to 15.6 per cent by 2017, less than manufacturing (38.7 per cent) and construction (21.3 per cent); and similar to services (which grew from 13.0 per cent in 2013 to 14.8 per cent by 2017).

"We would like to bring to the Minister's (of Human Resource) attention that in certain industries such as plantation sector, Malaysians shun the positions held by foreign guest workers.

"The jobs offered in the agriculture-plantation sector are deemed to be 3D (dirty, dangerous and difficult), and are far from the city lights.

"Locals are simply not interested despite the potentially good salaries and amenities in plantations," the MEOA said.

It said to encourage more locals into the 3D plantation sector, modernisation and mechanisation with better productivity-linked job incentives need to be pursued.

Meanwhile, the MEOA implores that the Ministry (of Human Resource) and its relevant agencies will consider the survival and sustainability of the country's plantation sector, including the palm oil industry and allow for grower companies, which have tried to recruit locals but still unable to fill vacancies, to recruit foreign workers immediately.

In addition, amid the COVID-19 pandemic, the existing guest workers still in the country should have their work permits renewed and extended accordingly.

"The plantation industry is ready to abide by the Ministry of Health's regulations and Standard operating Procedures, including COVID-19 tests and quarantine," the MEOA added.