Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 30): Plantations in Sabah can now work at full capacity during the current Conditional Movement Control Order (CMCO).

In a statement, the Malaysian Estate Owners Association (MEOA) thanked Sabah Local Government and Housing Minister Datuk Seri Masidi Manjun and the Sabah State Disaster Committee for allowing the plantation sector to work at full capacity during the CMCO.

It noted that members will implement voluntary lockdowns of plantations and adhere to existing COVID-19 standard operating procedures (SOPs), and ensure that all crops are harvested, transacted and processed.

The association said this would ensure growers with an emphasis on smallholders are fully engaged in earning a good living versus being exposed to the virus.

“MEOA appreciates the foresight of the Sabah State government to allow the oil palm plantation industry to help to police the estimated 220,000 plantation workforce and keep them within the limits of their boundaries, fully occupied in gainful employment, and at the same time allowing the smallholders and mid-size estates to be able to earn their share of the RM60 million per day potential income from the oil palm sector, during this peak season, in a controlled environment during these challenging times,” it said.

Previously, MEOA said that the previous SOPs would have had a detrimental impact on the plantation sector, adding that it would have impacted 1.54 million hectares of oil palm planted areas in the State, involving 220,000 employees excluding dependents, 132 palm oil mills, 12 palm kernel plants and 11 refineries.

To recap, last week the Sabah government announced that businesses involved in the oil palm sector may only have half of their workforce present if they employ more than 10 workers. In addition, it would also limit working time to 12 hours, from 6am to 6pm.

Upstream oil palm plantations — including smallholders and estates — and mid-stream palm oil mills, as well as downstream players such as refineries and other supporting services including transportation services would be affected by the new SOPs.

This would have resulted in a revenue low of RM900 million a month or RM30 million a day based on CPO price at the time, which as near RM3,000.

CPO futures for delivery in November was down by RM40 at RM3,011 as at 8.15pm today.

Edited ByKathy Fong
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