KUALA LUMPUR (April 1): Sime Darby Plantation Bhd (SDP) is backing the concerns raised by the Malaysian Palm Oil Association (MPOA) and the Malaysian Estate Owner Association (MEOA) about the recent closure of palm oil operations in three additional districts in Sabah. 

The decision by the state government results in the shutdown of palm oil operations in a total of six Sabah districts, which account for 75% of the state’s CPO production.

In a statement today, SDP said it appreciates and understands that Covid-19 is being prioritised by the state government. However, it also believes that the initiative on containment needs to be balanced with considerations to not jeopardise industries recognised by the National Security Council (NSC) as essential to avoid potentially adverse and severe implications arising from the decision.

“We are hopeful that the State Government of Sabah will take MPOA’s concerns into account and reconsider its decision,” SDP said.

“This is in line with the NSC’s move to allow palm oil companies to continue limited parts of their operations deemed essential by strictly adhering to the conditions and operational guidelines as specified by the NSC.”

In line with this, SDP said it has worked with the authorities and made adjustments to the operations at its estates and mills to be in strict compliance with the conditions and guidelines.

“We believe the same has been implemented by other responsible palm oil companies to ensure that the essential parts of their operations will continue to remain productive during this difficult period for the country, whilst ensuring risks to the safety and health of all workers are effectively mitigated,” SDP said.