Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (April 2): Hot on the heels of FGV Holdings Bhd and Sime Darby Plantation Bhd, Singapore-listed vegetable oil company and PPB Group Bhd associate company Wilmar International Ltd said that the closure of palm operations in six districts will have greater socioeconomic ramifications and is appealing to the Sabah government to reconsider the closure.

In a statement, Wilmar said that while it understands the concerns of the Sabah government and applauded the state’s efforts to contain the spread of Covid-19, the local workforce in these six areas are highly dependent on the continuous operations of the palm oil industry. 

“An estimated 100,000 workers are directly affected by the closure. Thus, ensuring the availability of continuous financial and job security is essential, especially under these troubling circumstances,” it said. 

The group added that there is a looming food crisis at home in Malaysia and abroad due to the severe disruptions in supply chain and logistics. 

While it pointed out that the government has enforced measures to address food security concerns and deeming palm oil refineries as an essential service, the irony is that the closure of oil palm estates and mills will have a direct impact on the ability of refineries to operate.

Consequently, this will impact the supply of food products and cooking oil that are essential items in Malaysia. 

As such, Wilmar said it is seeking to engage with the Sabah government to reconsider its closure of palm oil operations in the six districts, by allowing oil palm plantations and mills to resume operations in a limited capacity for essential and critical operations — namely harvesting, crop evacuation and milling operations. 

This will allow us to continue supporting the socioeconomic needs of our workers and local communities and addressing the need for food security for the nation, while strictly observing the guidelines and SOPs that are in place to help curb the spread of Covid-19,” Wilmar said. 

It added that it has developed and adopted robust standard operating procedures (SOPs) at all of its estates and mills while introducing voluntary lockdowns among employees alongside making preparations for the temporary closure of units affected by the virus — with necessary measures in place to disinfect locations. 

To date, none of its employees has tested positive for the virus. 

Sabah Chief Minister Datuk Seri Mohd Shafie Apdal said that palm oil operations in Kalabakan, Semporna, Kunak, Tawau, Lahad Datu and Kinabatangan would be halted until April 14 to control the spread of Covid-19. 

These six areas account for 75% of Sabah’s palm oil production, with the state being the largest palm oil producer in the country. 

So far, the Malaysian Palm Oil Association (MPOA), Malaysian Estate Owners Association (MEOA), FGV Holdings Bhd (FGV) and Sime Darby Plantation Bhd have all asked the Sabah government to reconsider its decision to close palm oil industry operations in these areas. 

      Print
      Text Size
      Share