RM4bil revenue boost expected with resumption of foreign worker recruitment, says MPOA

MPOA said an intake of 40,000 foreign workers were expected in the plantation sector.

PETALING JAYA: The Malaysian Palm Oil Association (MPOA) expects the plantation sector to generate approximately RM4 billion in revenue following the government’s decision to allow the resumption of foreign worker recruitment.

With an expected intake of 40,000 foreign workers into the sector, MPOA CEO Joseph Tek said it also anticipated that an additional RM500 million would be contributed to the government through taxation.

“Assuming that only half of them are allocated to harvesting duties, constituting a workforce of 20,000 dedicated harvesters, a significant economic impact is poised to unfold,” Tek said in a statement.

Earlier today, plantation and commodities minister Johari Ghani announced that only the plantation sector would be permitted to hire foreign workers.

Johari said the decision, conveyed to him by home minister Saifuddin Nasution Ismail, was reached after Saifuddin’s meeting with human resources minister Steven Sim on Jan 16.

Foreign worker recruitment had been frozen since March 17 last year.

In the statement, Tek also expressed MPOA’s gratitude to Johari for his prompt and decisive action.

“This decision comes as a relief to the oil palm industry in Malaysia, which has been grappling with a substantial shortage of 40,000 workers,” Tek said.

“MPOA acknowledges and appreciates the swift response and support extended by the minister in addressing this critical labour deficit in the plantation sector.”