SIME Darby Plantation Bhd (SDP) has joined the chorus of calls urging the Sabah government to reconsider its recent decision to close palm oil operations in three additional districts, which expanded the shutdown to six districts that account for 75% of the state’s crude palm oil production.
In a statement today, the company said the initiative on Covid-19 spread containment should be balanced with considerations to not jeopardise industries recognised by the National Security Council (NSC) as essential.
This was “to avoid potentially adverse and severe implications arising from the decision,” SDP said.
Yesterday, the Malaysian Palm Oil Association (MPOA) and the Malaysian Estate Owner Association (MEOA) voiced their concern over the suspension of palm oil estates and mill operations in the three additional districts. They urged the state government to allow industry players to resume essential and critical operations such as harvesting, crop evacuation and milling.
SDP said it hoped the Sabah government would take MPOA’s concerns into account and reconsider, in line with the NSC’s move to allow palm oil companies to continue limited parts of their operations deemed essential by strictly adhering to the conditions and operational guidelines as specified by the council.
“SDP has worked with the authorities and made adjustments to the operations at our estates and mills to be in strict compliance with these conditions and guidelines.
“We believe the same has been implemented by other responsible palm oil companies to ensure that the essential parts of their operations will continue to remain productive during this difficult period for the country while ensuring risks to the safety and health of all workers are effectively mitigated,” it said.
The Sabah government has so far announced a temporary closure of all palm oil mills and plantations in six districts, namely Kalabakan, Semporna, Kunak, Tawau, Lahad Datu and Kinabatangan, until April 14.
The closure in the additional three districts of Tawau, Lahad Datu and Kinabatangan brought the total area that is closed to about 65% of the total 1.2 million-hectare planted area in the state. — April 1, 2020, Bernama
