KUALA LUMPUR: Malaysian Palm Oil Association (MPOA) says the approval for the recruitment of foreign workers comes as a relief for the plantation sector, which has been grappling with a substantial shortage of 40,000 workers.
"MPOA acknowledges and appreciates the swift response and support extended by the (plantations and commodities) miinister in addressing this critical labour deficit in the plantation sector," MPOA chief executive officer Joseph Tek Choon Yee said.
"The estimated revenue losses due to the shortage of oil palm harvesters alone is estimated to be RM20 billion in the year 2022," Yee said in a statement today.
In light of the recent announcement indicating the admission of 40,000 workers into the plantation sector, assuming that only with half of them allocated to harvesting duties
constituting a workforce of 20,000 dedicated harvesters, a significant economic impact is poised to unfold.
According to Yee, assuming each harvester can efficiently cut one tonne of fresh fruit bunches (FFB) per day over a span of 260 working days per year and with the current FFB price standing at RM750 per tonne (equivalent to CPO at RM3,800 per tonne), the potential "losses" and potential in FFB crop that can be harvested and recovered now amount to a substantial 5.2 million tonnes of FFB.
He said this translates to a staggering revenue of close to RM4 billion.
"The implications of this substantial economic activity extend beyond the industry itself, as it stands to generate an additional RM0.5 billion into the government coffers through taxation, based on an estimated 13 per cent of the revenue, aligning with the fiscal dynamics observed in the year 2022," he said.
In addition, Yee said the aforementioned figures underscore the opportunity realised and multiplying effects of this development, demonstrating not only the economic prosperity generated within the sector but also its cascading impact on government revenue.
"This aligns seamlessly with the concept of Madani, emphasising our shared destiny and the collective benefits derived from concerted efforts in driving economic growth and sustainability," he added.
Earlier, Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani shared this noteworthy development with the media in Bangi today.
According to the minister, the pivotal decision was communicated to him following a meeting between Home Minister Datuk Seri Saifuddin Nasution Ismail and Human Resources Minister Steven Sim Chee Keong on Jan 16.