HIGH FOREIGN LABOUR COST JEOPORDISING SABAH'S PALM OIL INDUSTRY

SANDAKAN (Malaysia), May 25 (Bernama) -- The dependence on foreign labour has resulted in high operations cost for the country's palm oil industry, says Minister of Plantation Industries and Commodities Bernard Dompok.

At the end of last year, there were 525,000 foreign workers in the country's
plantation sector and from that, 274,523 workers were in East Malaysia states of
Sabah and Sarawak.

"In Sabah, there are many foreign workers for the palm industry from
Indonesia and the cost of getting their services is high.

"If this is not dealt with, it will jeopordise the oil palm industry of the
state, which is the most important state for Malaysia in the industry," he told
reporters after a dialogue with the East Malaysia Planters Association here
Monday.

Also present at the dialogue was the Chairman of EMPA Othman Walat and Chief
of the Malaysian Palm Oil Board (MPOB) Dr Mohd Basri Wahid.

Dompok said the high cost problem was brought up by EMPA during the dialogue
session which he had attended to hear out the problems being faced by the
industry in Sabah.

He said he will bring up the matter to the federal government and state
government and identify the factors that would need study, and find a resolution
for it.

Dompok said Sabah was the main palm oil producing state in the country with
its total oil palm planted area coming to 1.33 million hectares or 30 percent of
the country's total oil palm planted area.
-- BERNAMA