Kota Kinabalu: Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin urged Deputy Chief Minister Datuk Seri Jeffrey Kitingan to formally address the high costs of digital foreign worker registration with the State Cabinet.
Chan agreed with Jeffrey’s recent statement expressing disappointment over the excessive fees for digital foreign worker registration.
He supported Jeffrey’s call to make the registration process free so as to encourage undocumented foreign workers to voluntarily register.
“The plantation sector in Sabah, especially the palm oil industry, heavily depends on foreign labour.
“Free digital registration is crucial not only for documenting workers but also for maintaining the legitimacy and sustainability of Malaysia’s palm oil supply chain in the international market,” Chan said, at a Breaking Fast Ceremony with agencies under the Ministry, Thursday.
Chan highlighted that while palm oil prices remain favourable, production costs are also high.
He said the costly digital registration process adds financial strain to the industry, affecting its sustainability.
“I strongly urge Jeffrey, who also leads the Special Cabinet Committee on Digital Registration of Foreign Nationals, to raise this issue in the State Cabinet meeting for further evaluation and review.”
He stressed that Sabah’s crude palm oil (CPO) production declined by 5.2pc in 2024, dropping to 4.27 million tonnes from 4.51 million tonnes in 2023. He attributed this decrease to lower fresh fruit bunch yields.
“We must take this matter seriously to ensure Sabah’s palm oil sector remains competitive and does not fall behind Sarawak or Peninsular Malaysia.
“The Federal Government has allocated RM100 million to continue the Smallholder Palm Oil Replanting Incentive Scheme 2.0 (TSPKS 2.0) this year, and Sabah must increase its replanting rates.”
Jeffrey criticised the unexpected fees imposed on undocumented foreign workers participating in the state’s Digital Registration Programme, saying the initiative was intended to be free to encourage voluntary registration.
He stressed the primary goal is data collection to create a comprehensive record of Sabah’s foreign workforce.
A pilot program revealed that over half of the sector’s workforce, including employees of government-linked companies, were working illegally.
As of April 2022, the Sabah Integrated Management of Foreign Workers and Non-Residents (SWIMS) system recorded 39,276 individuals, comprising 21,994 workers in agriculture and construction, and 17,282 dependents.
The system leverages biometric data and facial recognition for worker identification.
Jeffrey acknowledged the challenges faced by undocumented workers, including limited access to banking, healthcare and education for their children. He said proper documentation benefits both the workers and Sabah’s economy.
The State Government is currently collaborating with the Home Ministry, the Immigration Department and foreign consulates to facilitate the legalisation process and secure work permits for over 100,000 undocumented foreign workers in the state.
Chan also promoted the upcoming Malaysia International Cocoa Fair (MICF) 2025, which will be held from May 25 to 27 at the Sabah International Convention Centre (SICC).
“Cocoa is a source of pride for Sabah. I encourage industry players to support MICF 2025, which aims to promote Malaysian cocoa globally, strengthen investor relations, and drive innovation in the national cocoa industry,” he added.
