GOVT WILL RESOLVE LABOUR SHORTAGE IN SABAH SOON

By P.Vijian

NEW DELHI, Dec 19 (Bernama) -- The Malaysian government has assured it will
soon step in to address the labour shortage woes in the palm oil plantations in
East Malaysia state of Sabah.

Plantation Industries and Commodities Minister Bernard Dompok said only
genuine foreign workers would be allowed to work, in facing the pressing labour
shortage in the state.

"We have no problem getting plantations to recruit foreign workers,
especially in Sabah. But they must come with proper documents.I don't want them
to recruit illegal immigrants," Dompok told Bernama in Delhi.

The minister was responding to a recent media report in Malaysia that the
palm oil industry in Sabah would lose billions, due to a large number of
Indonesian workers returning to their homeland, as salaries are almost the same
back home.

The Malaysian Palm Oil Association chief Mamat Salleh had told the media
that revenue would be seriously affected due to the shrinking labour force.

"If foreign workers, comprising half of the 600,000 workforce in the palm
oil industry, is reduced by 30 per cent, Malaysia's export earnings could
shrink as much as RM10 billion (US$2.91 billion) a year," Mamat was quoted as
saying.

Dompok said Malaysia was now facing competition from Indonesia.

"We also want to see how we can encourage locals to work in the plantation
sector," he added.

According to the Palm Oil Industrial Cluster (POIC) in Sabah, the industry
contributes about RM4 billion (US$1.16 billion) in state revenue and employs
130,00 workers.

Sabah is the largest palm oil producer in Malaysia and owns about 1.4
million hectares, producing 5.8 million tonnes of crude palm oil.

Malaysia is the world's second largest producer of palm oil after Indonesia.

Dompok was in Delhi to inaugurate the Malaysia-India Palm Oil Trade Fair
and Seminar (POTS)2009 earlier this week.
--BERNAMA