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Issues and Challenges on Labor in Plantation Industry: A Malaysian Perspective

This presentation discusses the labor shortage in the plantation industry in Malaysia and explores the high dependency on foreign workers, mechanization-related issues, and the efforts to modernize the sector and increase local workers' participation.

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Issues and Challenges on Labor in Plantation Industry: A Malaysian Perspective

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  1. INTERNATIONAL PLANTATION INDUSTRY CONFERENCE AND EXHIBITION (IPiCEX2012) 5th November 2012 ISSUES AND CHALLENGES ONLABOUR IN PLANTATION INDUSTRY:A MALAYSIAN PERSPECTIVE MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES (MPIC)

  2. SCOPE OF THE PRESENTATION MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

  3. CONTRIBUTION OF THE COMMODITY INDUSTRIES TO THE ECONOMY OF MALAYSIA (2007 – 2011) INTRODUCTION Source : Department of Statistics, Malaysia MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

  4. NATIONAL KEY ECONOMIC AREA (NKEA) • Contribution to Gross National Income • Palm Oil – RM178 billion • Rubber – RM52.9 billion • Focus on high value added products/ downstream activities INTRODUCTION Entry Point Projects MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

  5. LABOUR REQUIREMENT IN PLANTATION SECTOR (2012) • 1 415,929 are rubber owner-operators. Shortage still happens for rubber sector, mainly in estates. • 2 15,390 are cocoa owner-operators. No shortage reported for cocoa. • 3 67,247 are pepper owner-operators. No shortage reported for pepper. • Additional requirements based on ideal land : labour ratio – 110,364 workers. • Actual labour shortage reported by palm oil estates through e-Labour – 26,167 workers INTRODUCTION MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

  6. ACTUAL LABOUR SHORTAGE IN PALM OIL ESTATES (AS AT SEPTEMBER 2012) INTRODUCTION MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

  7. LOW PARTICIPATION OF LOCAL WORKERS Soybean Harvesting in Iowa, United States ISSUES MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

  8. HIGH DEPENDENCY ON FOREIGN WORKERS Mechanized Harvesting In Developed Countries ISSUES Soybean Harvesting Sweet corn Harvesting MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

  9. MECHANIZATION RELATED ISSUES ISSUES MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

  10. TO MODERNIZE PLANTATION SECTOR BY 2020 CHALLENGES MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

  11. TO INCREASE LOCAL WORKERS PARTICIPATION IN PLANTATION SECTOR CHALLENGES MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

  12. APPROVAL OF FOREIGN WORKERS (AS AT 30th SEPTEMBER 2012) INITIATIVES TAKEN MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

  13. INNOVATION IN THE PLANTATION AND COMMODITIES SECTOR (MECHANIZATION) INITIATIVES TAKEN MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

  14. FINDINGS ON PERFORMANCE OF CANTAS BY KULIM (PILIPS’12) AREA : FIELD P2000 & FIELD P2003 (410.33 HA) at Ladang Sungai Sembrong A. Saving on Price Bonus (P.B) and Price Incentive (P.I) INITIATIVES TAKEN B. Saving on recruitment cost – General Expenditure Saving - 8 workers @ RM 1,280.35 / head = RM 10,242.80 GRAND TOTAL = RM 16,631.75 + RM 10,242.80 =RM 26,874.55 MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

  15. HUMAN CAPITAL DEVELOPMENT Mechanization INITIATIVES TAKEN HUMAN CAPITAL DEVELOPMENT Skilled & semi-skilled labours MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

  16. THE WAY FORWARD THE WAY FORWARD MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

  17. THANK YOU MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

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