KUALA LUMPUR (Oct 21): Sime Darby Plantation Bhd (SDP) said on Friday (Oct 21) it expects to eliminate the need for manual workers in all non-harvesting activities by the end of 2023, as it has successfully mechanised several tasks across its plantations operations in Malaysia.

“As a result of a broad scale initiative launched two years ago, we expect to reduce the number of plantation workers by 55% by the end of 2023 and improve our land-to-man ratio to 1:17.5 hectares (ha) by the end of 2024,” SDP’s group managing director Mohamad Helmy Othaman Basha said while speaking at the annual Oils and Fats International Conference (OFIC).

He added that the current industry average is one worker for every 8ha and as dependence on manual labour decreases, productivity will improve.

“After more than 100 years of working the same way, heavily dependent on manual and menial labour, our industry can finally move forward,” Mohamad Helmy said.

SDP aims to have 100% local workforce for its Malaysian plantation operations by the end of 2027.

The palm oil industry is typically highly labour-intensive. Prior to the pandemic, 80% to 85% of the plantation operations’ workforce were migrant workers, though at SDP, foreign workers accounted for about 75% of the plantation workforce.

In SDP’s Malaysian operations, drones have replaced over 100 workers who used to carry a backpack of chemicals to spray young seedlings in nurseries.

A key area that is still being studied is the harvesting of oil palm fruits, which requires skilled manual labour if palm trees are too tall.

However, SDP’s newly-established robotics unit is working with several organisations to find a viable solution.

Mohamad Helmy believes there will be more opportunities for Malaysians to become a part of this exciting transformation and contribute to the future of the Malaysian palm oil industry.

At market close on Friday, SDP share price rose two sen or 0.45% to RM4.42, valuing the group at RM30.57 billion.