Kuala Lumpur: The Ministry of Plantation and Commodities (MPIC) aims to focus on mechanisation and automation to overcome the tight labour supply for the palm oil industry. Deputy Plantation and Commodities Minister Datuk Chan Foong Hin emphasized the need for the industry to transition away from reliance on foreign labour during a press conference held today.

According to BERNAMA News Agency, Chan stated that the government does not plan to continue depending on foreign workers, highlighting the importance of long-term strategies involving mechanisation and automation. He mentioned that Budget 2025 includes incentives designed to encourage industry players to adopt these technologies, marking a significant step forward for the industry.

Chan further explained that exceptions to foreign labour quotas are contingent upon the industry’s needs and feedback. Last year, a one-time exception allowed for 60,000 foreign workers; however, this year’s allowances will depend on whether the industry indicates an urgent need.

Addressing Indonesia’s delay in implementing the biodiesel B40 mandate, Chan commented that Malaysia is not under pressure to increase domestic palm oil consumption for biodiesel purposes. He noted that the country prioritizes palm oil exports, pointing out last year’s increase in export activities as evidence that there is no immediate need to enhance biodiesel consumption domestically.