KUALA LUMPUR: The Malaysian Palm Oil Association (MPOA) and the Malaysian Estate Owners Association (MEOA) say they have been actively engaged with the Sabah government on the closure of oil palm operations in six districts to prevent the spread of Covid-19.
In a joint statement, the associations said they have provided the state authorities information on the list of the plantation operations in the six districts, together with maps indicating their locations.

“Along with these information, details of Covid-19 plantation related cases were also requested by the authorities.
“All together there were only three affected companies — with all cases linked to pre-movement control order (MCO), said the associations.
They said they are not aware of any new Covid-19 cases reported after that from the plantations.
“Justifications have also been furnished as to why the plantation sector should not be shut down and the potential risks that can be scary realities involving the estimated 100,000 foreign workers,” said MPOA and MEOA.
They added that social distancing practices in palm oil plantations generally involves an average of one worker per 10 acres.
The associations also emphasised that planters have demonstrated and implemented voluntary lockdowns in their various operations and that all guidelines and standard operating procedures relating to the plantation operations under the MCO were adhered to.
MPOA and MEO added that any prolonged shutdown will only worsen the situation. They said plantation firms have informed them of huge crop losses and weeds creeping in as a result of the lack of regular field maintenance.
As such, this would entail remedial rehabilitation work once the ban on activity is lifted on April 14, which will be a costly exercise.
On top of that, the associations also highlighted that there might not be enough workers to harvest or sell the crops, as some workers have started leaving plantations after collecting last month’s wages, with some still yet to receive compensation for their labour.
Smallholders have also indicated to the associations that they are finding it hard to make ends meet in this current environment, and it would be even more difficult to do so if the shutdown is prolonged further.
“Any further prolonged shutdown is a lost social-economic opportunity as a commodity like palm oil is one of the few sectors that can keep the economic momentum of the State running at current down-turn,” said MPOA and the MEOA.
According to Bloomberg, Sabah Chief Minister Datuk Seri Mohd Shafie Apdal will be discussing the closure of palm oil operations in Tawau, Lahad Datu, Kinabatangan, Kunak, Semporna and Kalabakan in a Cabinet meeting today.
Mohd Shafie had announced that palm oil operations in the districts will be closed until April 14, the last date of the MCO, unless it is further extended.
Last week, MPOA, MEOA and plantation giants such as FGV Holdings Bhd, Sime Darby Plantation Bhd, Kuala-Lumpur Kepong Bhd (KLK), Wilmar International Bhd and Genting Plantations Bhd had appealed to the state government to overturn the shutdown order.
The six districts account for 75% of Sabah’s palm oil output. Sabah is the biggest palm oil-producing state in the country.

https://www.theedgemarkets.com/article/plantation-groups-talks-sabah-over-ops-closure
Source: theedgemarkets.com
Arjuna Chandran Shankar