She said Indonesia had already approved the entry of 32,000 Indonesians by mid-February after completing discussions on certain technical issues.
“They want to sign a memorandum of understanding (MoU) which covers employment in the sector. Once we ratify it, they will allow their people to come to Malaysia,” she said at a press conference today.
Zuraida said matters such as workers’ living quarters and their social welfare were also being discussed with Indonesia.
“The issue of salaries does not worry us because the minimum wage is RM1,200, and on average palm oil workers earn RM2,200 per month,” she said.
Asked if Indonesia had asked for a higher minimum wage for their citizens, Zuraida said the ministry will engage with plantation companies and then negotiate with the Indonesian government to find an amicable solution.
She said the plantation sector should have a continuous supply of labour to ensure consistent production and to prevent the loss of fresh fruit bunches.
However, she stressed that foreign labour was only a short-term strategy as the country will be reducing its dependency on foreign labour. It will be replaced in five years’ time with robust automation and mechanisation.
In her speech earlier, Zuraida said from January to December 2021, the average crude palm oil (CPO) price surged by 64.1% to the highest on record at RM4,407.00 per tonne compared with RM2,685.50 per tonne during the same period in 2020.
Likewise, the average CPO price reached its historical peak for a monthly average at RM5,341.00 per tonne in November 2021 and a record daily average of RM5,429.00 per tonne on Nov 19, 2021.
This resulted in a significant increase of total palm oil products export revenue by 47.7% to RM95.76 billion in 2021 (January-November) compared with RM64.85 billion in 2020 (January-November).
“Despite these impressive numbers, we cannot afford to remain complacent. The palm oil industry is still facing many challenges globally.
“To maintain our competitiveness in the global market, issues such as environmental governance and sustainable production are stark reminders of the challenges that need to be addressed,” she said.
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