SANDAKAN: The Malaysian Palm Oil Association (MPOA) and Malaysian Estate Owners Association (MEOA) have appealed to the State Government to reconsider the decision to close all palm oil mills in plantations in Tawau, Lahad Datu and Kinabatangan.
“Allow us to resume operations only for the essential and critical operation, such as harvesting, crop evacuation as well as milling during the MCO (Movement Control Order). We strongly feel that we can better contain the spread by continuing operations rather than curbing them,” the MPOA and MEOA said in a joint statement yesterday.

The request was made by MPOA, represented by its chairman, Datuk Mohd Nageeb Abdul Wahab and MEOA represented by its chairman Jeffrey Ong, following the Chief Minister Datuk Seri Shafie Apdal’s announcement on Monday for all palm oil mills and plantations in Tawau, Lahad Datu and Kinabatangan to be closed until April 14.
The three districts are in addition to the closure of palm oil related operations in three other districts in Kalabakan, Semporna and Kunak.
The groups said the closure of palm oil operations in the six districts had affected about 65 percent of the total planted areas of 1.54 million hectares and 75 percent of production in Sabah involving about 100,000 workers.
“While the industry fully appreciates and understands the State Government’s concern on the rising number of Covid-19 cases in Sabah, the industry is even more concerned about the social impact on the closure decision as well as the resulting consequential damage to the industry.
“This closure would result in risk of losing our estate and mill workers as they will resort to leaving the estate to search for jobs elsewhere or returning to their home country for good. Note that not all companies could afford to pay them without work.
“The closure would also cause idle workers to be confined to their home for long hours without practising social distancing, and living in close proximity, all that can lead to further spread of the virus.
“We also face difficulty, and it is even impossible to stop them (workers) from leaving. That leaves the possibility of them wandering around, thus posing a security and crime threat as well as defeating the objective of MCO. Imagine 50,000 workers doing so,” they said.
The groups also pointed out that when the closure is over, resumption and normalisation of operation will pose a big challenge to the industry when the workers are no longer available.
“Extended harvesting rounds, high FFA and default palm oil contracts are some of the examples on the immediate impact on operations.
“The above only highlight the operational nightmare notwithstanding the potential revenue loss of about RM860 million for a month’s closure in Sabah. The loss in the 7.5 percent sales tax revenue to the Government amounting to about RM57 million could actually be used to support the fight to contain Covid-19 that benefits the Rakyat.
“Considering all the above factors, we humbly request and appeal to the Sabah State Government to reconsider their decision and allow us to resume operation only for the essential and critical operation,” they said.
They added: “The industry has already given its commitment to support the Government in its battle to contain the spread by introducing and adhering to radical and robust guidelines and SOPs (Standard Operating Procedures) at all our estates and mills.
Included in our action is what we called ‘Voluntary Lockdown’.
“We are even agreeable to a temporary closure to our operating units that have employees affected by the Covid-19 and taking the necessary measures to cleanse and disinfect the affected premises.”

https://www.theborneopost.com/2020/04/01/mco-appeal-to-reconsider-closure-of-palm-oil-mills/
Source: theborneopost.com