Let oil palm players resume op: SUCCC

Kota Kinabalu: The State Government should emulate the Federal Government by allowing oil palm plantations and palm oil mills in the State to operate during the Movement Control Order (MCO) period.

Sabah United Chinese Chambers of Commerce (SUCCC) President Tan Sri Andrew Liew Sui Fatt (pic) said oil palm industry players in the State will do their best to adhere to any conditions set during the MCO period which has been extended to April 14.

“We appreciate and support the measures taken by the Sabah Government to curb the spread of Covid-19. We also understand the threat posed by Covid-19 and share the concerns of the State Government. “However, we are very concerned about the impact of the order to shut oil palm plantations and palm oil mills as prolonged closure will have dire consequences.

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“Hence, we appeal to the State Government to consider allowing the plantations and mills to resume operations,” he told Daily Express, Saturday.

The State Government, on March 30, extended the shutdown of oil palm plantations and palm oil mills until April 14 in three new districts – Tawau, Lahad Datu and Kinabatangan.

Previously, it ordered such operations in three districts – Kalabakan, Semporna and Kunak - to close until March 31 after seven estate workers were tested positive for Covid-19.

Liew said the extended MCO would inevitably cause hardship, especially smallholders, whose livelihood is dependent on the industry. “Thousands of Sabahans also rely on income from the industry. Hence, we hope Chief Minister Datuk Seri Mohd Shafie Apdal will seriously look into the matter.”

Liew said that with depressed crude palm oil (CPO) prices and lower yields from June 2018 to November 2019, the oil palm industry suffered huge losses. “In early January this year, the CPO price rose to over RM3,000 per tonne but only lasted till the end of February. With the prevailing low crop yields, the oil palm industry could hardly recover from the losses. “Extending the MCO to the industry in Sabah will no doubt cause hardship, especially among smallholders, whose livelihood is dependent on it to sustain their living and small and medium enterprises which are on bank loan,” Liew said.

He added that transportation companies are hard hit by the MCO as they are not allowed to transport fertiliser and CPO from mills to refineries and to ports, as well as transporting fresh fruit bunches from estates to mills. “All these will have a huge chain effect on the whole industry. If oil palm estates are not allowed to operate or harvest fruits to be delivered to the mills, planters will suffer huge losses as unharvested fruits will be left to rot and mills will not accept overripe or rotten fruits with high fatty acid content.

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“It is a well known fact that oil palm estates are facing labour shortage for many years. If the MCO is extended, workers’ wages will be much affected and as a result they will opt to leave and return to their countries (90pc are Indonesian). Once they left, they would not come back. “In light of this, all operations related to the industry should be allowed to continue to avoid serious financial and social implications.”

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