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Govt to prioritise mechanisation, automation to overcome tight labour supply

14 Jan 2025, 8:56 AM
Govt to prioritise mechanisation, automation to overcome tight labour supply

KUALA LUMPUR, Jan 14 — The Plantation and Commodities Ministry aims to focus on mechanisation and automation to overcome the tight labour supply for the palm oil industry.

Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said the industry needed to have a transition period in overcoming the issue as the government does not plan to rely on foreign labour.

“In the long term, we should aim for more mechanisation and automation.

“In Budget 2025, the government has also provided incentives to encourage industry players to adopt more mechanisation and automation, so that’s the plan going forward,” he said in a press conference today.

Chan also noted that an exception on foreign labour quota depends on the urgency and the industry’s feedback.

“The one-time exception for the quota was given for around 60,000 workers last year, but this year it depends on the industry feedback on whether it’s urgent,” he noted.

Meanwhile, commenting on Indonesia’s biodiesel B40 mandate delay, he said Malaysia does not have the urgency to consume more palm oil for biodiesel as the country focuses more on exporting the commodity.

“Although Malaysia and Indonesia have their differences on the sector, we rely highly on exports.

“Witnessing the export rise last year, I think there is no urgency to consume more palm oil as part of biodiesel,” he added.

— Bernama

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