Labor crunch leaves Malaysian palm oil fruits untouched

The industry loses $2.35 billion in unharvested fruits

IJOK, Malaysia (AFP) — Overripe palm oil fruits hang untouched in trees while others lie rotting scattered around a plantation, as Malaysian farmers reap the bitter harvest of a severe labor shortage.

The tropical country is the world’s second-biggest producer of the edible vegetable oil, which is found in many everyday goods from chocolate to cosmetics.

The sector has long been reliant on migrants from neighboring Indonesia for back-breaking plantation work, which is shunned by most in more affluent Malaysia.

Lengthy Covid border closures had already reduced the foreign labor force, but now bureaucratic hurdles and a ban by Indonesia on sending new workers have dramatically worsened the problems.

“A lot of bunches of fruit are rotting on the trees,” Suzaidee Rajan, 47, who owns a 300-acre (120-hectare) plantation in Ijok, central Selangor state, told AFP.

“We usually harvest twice a month. But now due to the labor shortage, we can (do so) just once a month. Our income has plunged and locals are angry.”

There is currently a shortage of about 120,000 workers.

With just four foreign workers — two fewer than the number he needs — Suzaidee now has to drive into his plantation and load the fruit onto a lorry himself.

‘Darkness on horizon’

Other Malaysian industries, including construction and manufacturing, also rely on migrant workers from across Asia, and suffered as a result of lengthy pandemic border closures.

While authorities ended a freeze on hiring foreigners in February, laborers have been slow to return because of red tape and difficult negotiations with countries of origin.

Problems in the plantation sector have been particularly acute, however, and look set to get worse after Indonesia banned sending new workers to Malaysia earlier this month.

Hermono — Indonesia’s ambassador in Kuala Lumpur, who goes by one name — said Jakarta took the decision as Malaysia was not abiding by an agreement aimed at protecting his compatriots.

The Malaysian estate owners’ association said there is currently a shortage of about 120,000 workers.

And this month Minister Zuraida Kamaruddin, who oversees the plantation sector, said the industry lost 10.46 billion ringgit ($2.35 billion) in the first five months of 2022 as palm oil fruit was left unharvested.

“I can see only darkness on the horizon unless migrant workers are brought into the country immediately,” farmer Sahman Duriat, who has a plantation in Ijok, told