FGV supports Sabah oil palm operation closure

FGV Holdings Bhd has come forward in support of concerns raised by the Malaysian Palm Oil Association (MPOA) and the Malaysian Estate Owners Association (MEOA) over the Sabah government’s decision to close oil palm operations in three additional districts in the state until April 14.

FGV said it understood the state government’s concerns on the increasing Covid-19 spread in Sabah but at the same time, the company was concerned about the social impact of the closure.

“In line with the announcement of the prime minister (Tan Sri Muhyiddin Yassin) recognising the palm oil industry as an essential service, all operations related to the palm oil industry need to be continued to avoid worse financial and social implications,” the company said in a statement yesterday.

FGV’s statement echoed parts of a statement issued earlier today by Sime Darby Plantation that also urged the Sabah government to reconsider its decision to expand the shutdown to six districts, which constitutes 65 per cent of the total 1.2 million hectares of cropland and 75 per cent of production in Sabah.

Sime Darby Plantation had pointed to the National Security Council’s move to allow palm oil firms to continue “limited parts of their operations deemed essential by strictly adhering to the conditions and operational guidelines as specified by the council.”

In its statement, FGV voiced concern over the welfare of 871 families in Felda Sahabat and 776 families in Felda Umas, whose income would be affected as a result of the closure.

“FGV hopes that the Sabah state government will deliberate MPOA’s views and reconsider the decision,” it said.

The company added that it had adhered to all standard operating procedure and guidelines for all its estates and mills since the Movement Control Order’s implementation on March 18 and would continue to work closely with all stakeholders to minimise the risks to the safety and health of all employees. - Bernama