THE Malaysian plantation fraternity is hoping that the Government will allow the plantation sector across its supply chain to be allowed to continue operations with strict adherence to the standard operating procedures, in order to sustain its contribution to the national economy.
This was voiced in a joint statement issued by eight associations including the Malaysian Palm Oil Association, Malaysian Estate Owners’ Association, National Association of Smallholders, Malayan Agricultural Producers Association and Palm Oil Millers Association.
“(The continuity of operations) would be preferable to a total shutdown of an essential pillar of the national economy, with concomitant socio-economic consequences for the industry and hundreds of thousands of smallholders,” it said.
The associations viewed that if field and mill operations are called upon to operate on reduced workforce, this would impact production capacities enormously, and the government would also stand to lose windfall profit levy each month and corporate income tax.
“These losses do not include the losses that will cascade to downstream refiners and the multiplier effect on supporting industries,” it added.
The associations also called on all stakeholders to continue with consultative engagements based on Sabah’s recent model, by seeking out and implementing inclusive discussions with the authorities in their respective states, and working towards adopting common but differentiated approaches which embrace sectoral-specificness. – Jan 29, 2021
