Malaysia has often been known to be reliant on foreign labour to take up jobs and responsibilities that are otherwise left vacant by most Malaysians, whether due to low pay, social stigma, or disinterest in the field.
As a matter of fact in December 2022, Malaysia hosts around 1.45 million foreign labourers, the bulk of which are hired to work in the manufacturing sector 538,148. This is followed by the construction sector at 315,932, and services at 221,621. The total sum also factors in 316,446 new foreign workers employed in 2022.
Sime Darby Plantations aims for 100% local workforce by 2027
In light of that, Sime Darby Plantations (SDP) has announced that they will be aiming to transition to a 100% local workforce in their plantation operations by 2027. Quoting the group’s managing director Mohamad Helmy Othman Basha, The Edge Market reports that their decision was made in hopes of reducing their dependency on foreign labour, while enhancing their on-ground mechanisation and automation efforts.
“The end game is to reduce manpower as much as possible. For Malaysia, we want to recruit our locals. We want to have 100% local workers.” said Mohamad Helmy last Tuesday (March 7th) at the 34th Palm & Lauric Oils Price Outlook Conference & Exhibition.
And to do so, the company will be offering an increased minimum wage amount that will now start from RM3,000, with hopes of luring in more local talents to participate in the domestic agricultural sector. According to local newspaper Berita Harian, the new rate has already been implemented and benefitted around 400 members of its staff who are currently employed as plantation machinery experts.
Increase of minimum wage to RM3,000 to attract more local talents
Commenting further on the matter, SDP explains that the bulk of these employees are graduates from polytechnic institutions, universities, colleges, and other similar institutions who have undergone appropriate technical skill training from industry suppliers before being assigned to real-world responsibilities. They explain that plantation machinery experts are also not bound strictly to one company, and may also work for other plantations.
At this point in time, the company’s workforce consists of 60% foreign workers, and 40% local manpower. Concurrent to their new hiring targets, Sime Darby Plantations is also looking to increase their land-labour ratio for oil palm plantations from 15 hectares to 17.5 hectares per worker. With their current rate of transformation, the company hopes to hire 900 more local employees by this year.
Back in May of last year, Sime Darby Plantations had already introduced a new minimum wage rate of RM1,500.
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