issues and challenges on labour in plantation industry: a malaysian perspective ministry of...
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ISSUES AND CHALLENGES ONLABOUR IN PLANTATION
INDUSTRY:A MALAYSIAN PERSPECTIVE
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES (MPIC)
INTERNATIONAL PLANTATION INDUSTRY
CONFERENCE AND EXHIBITION (IPiCEX2012)
5th November 2012
SCOPE OF THE PRESENTATION
• Contribution of the commodity industries to the economy of Malaysia (2007 – 2011)
• Targets of National Commodity Policy, 2011-2020• Labour requirement in plantation sector (2012)• Labour requirement by the year 2020
Introduction
• Low participation of local workers• High dependency on foreign workers• Mechanization related issues
Issues
• To modernize the plantation sector by 2020• To increase local workers participation in plantation sector
Challenges
• Foreign workers approval• Innovations in the plantation and commodities sector
(Mechanization)• Human capital development
Initiatives Taken
Way Forward
2MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
CONTRIBUTION OF THE COMMODITY INDUSTRIES TO THE ECONOMY OF MALAYSIA (2007 – 2011)
Source : Department of Statistics, Malaysia
3MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
IN
TR
OD
UC
TIO
N
NATIONAL KEY ECONOMIC AREA (NKEA)
Contribution to Gross National Income
Palm Oil – RM178 billion
Rubber – RM52.9 billion
Focus on high value added products/
downstream activities
Entry Point Projects
4MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
IN
TR
OD
UC
TIO
N
GNIPalm Oil RM178bRubber RM52.9b
GDPRM28.5b
Exports
RM242.6b
LABOUR REQUIREMENT IN PLANTATION SECTOR (2012)
1 415,929 are rubber owner-operators. Shortage still happens for rubber sector, mainly in estates.
2 15,390 are cocoa owner-operators. No shortage reported for cocoa. 3 67,247 are pepper owner-operators. No shortage reported for pepper. Additional requirements based on ideal land : labour ratio – 110,364 workers. Actual labour shortage reported by palm oil estates through e-Labour – 26,167
workers
CommodityArea
(Hectare)
Labour Requireme
nt(A)
Ideal Land:Labour
Ratio(Hectare/ Rerson)
Existing Labour (Sept. 2012) Labour
Shortage
(A - B)Local Foreign
Total(B)
Palm Oil 5,027,959 502,796 10 : 1 94,774 299,560 394,334 108,462
Rubber 1,025,000 170,833 6 : 1 423,1951 31,790 454,985 (92,533)
Cocoa 21,710 17,947 1.21 : 1 15,7902 250 16,040 1,902
Pepper 14,791 29,582 1 : 2 67,2473 29 67,276 (37,694)
Total 6,089,460 721,158 601,006 331,629 932,635 110,364
5MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
IN
TR
OD
UC
TIO
N
ACTUAL LABOUR SHORTAGE IN PALM OIL ESTATES (AS AT SEPTEMBER 2012)
6MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
IN
TR
OD
UC
TIO
N
Job Categories P.M Sabah Sarawak
Malaysi
a
Shortag
e (%)
Harvester & FFB Collector
6,029
2,877
3,339
12,245
46.79
Field Workers (Weeding, Fertilizer application & Pruning)
4,684
1,725
3,506
9,915
37.89
Other than field workers (Gardener, drivers & Security guard)
911
616
902
2,429
9.28
Others (Mondore, etc) 757
331
490
1,578
6.03
Total Shortage
12,381
5,549
8,237
26,167
Total Planted Area Covered By Survey (Million ha) 4.35
Total Responded Area (Million ha) 4.01
Responded Area (%) 92.31
LOW PARTICIPATION OF LOCAL WORKERS
• Due to the 3D factors (Dirty, Difficult & Dangerous)
• Location of workplace in rural areas
• Inadequate infrastructure facilities at plantation area
Lack Of Interest
• Job creation at technical level (skilled and semi-skilled) level is very low
• Shortage is mostly at the low level job categories (harvesting and maintenance works)
Higher Level Of Education
ISS
UES
7MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
Soybean Harvesting in Iowa, United
States
HIGH DEPENDENCY ON FOREIGN WORKERS
• Lack of mechanization• Insufficient supply of local labour• Employment of the illegal
immigrants (PATI) still exist • Too dependent on Indonesian
workers
Plantation Sectors Are Labour Intensive
• The development of palm oil industry in Indonesia
• Competition with other sectors and nations that requires foreign workers
• High cost of employing foreign workers
Difficulties In Recruiting Foreign Workers
ISS
UES
8MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
Mechanized Harvesting In
Developed Countries
Soybean Harvesting
Sweet corn Harvesting
MECHANIZATION RELATED ISSUES
• Difficult and undulating terrain• High cost of mechanization• Complacency – resistance to change
Difficulties in implementing mechanization
ISS
UES
9MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
TO MODERNIZE PLANTATION SECTOR BY 2020
10MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
Increase usage of mechanization in plantation works
Increase industry participation in R&D&C
Come up with various practical new innovations
Reduce the land : labour ratio for each category of field works
CH
ALLEN
GES
TO INCREASE LOCAL WORKERS PARTICIPATION IN PLANTATION SECTOR
11MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
• Adaptation to newer technologies and skills upgrading
• Cooperation to improve image of the commodity sector through formal training
• Increase job creation at technical and management level
Enhancing Skills of The Domestic Labour Force
CH
ALLEN
GES
Fast Track 2011 328 Companies 27,094 workers
Fast Track 2012 145 Companies 23,491 workers
Normal Track 2012
515 Companies 27,060 workers
6P Program 6,679 Companies 37,945 workers
Bangladesh G2G Mechanism Underway
APPROVAL OF FOREIGN WORKERS (AS AT 30th SEPTEMBER 2012)
12MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
INIT
IATIV
ES
TA
KEN
INNOVATION IN THE PLANTATION AND COMMODITIES SECTOR (MECHANIZATION)
Harvesting Technologies• CANTAS – Mechanized cutter for oil palm• ART – Mechanized tapping of rubber• G-FLEX
Transportation• Motorcycle Trailer• Compact Transporter• Beluga
Others• Roller Picker – Loose fruit collector• Mark III• COBRE - Cocoa pod breaking machine
13MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
INIT
IATIV
ES
TA
KEN
FINDINGS ON PERFORMANCE OF CANTAS BY KULIM (PILIPS’12)
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES 14
INIT
IATIV
ES
TA
KEN
AREA : FIELD P2000 & FIELD P2003 (410.33 HA) at Ladang Sungai Sembrong
A. Saving on Price Bonus (P.B) and Price Incentive (P.I)
CONVENTIONAL (ASSUMPTION)
USING CANTAS (ACTUAL)
No. of harvester require
20 harvester 12 harvester
Days work in 2011 292 days 292 days
Total Mandays in 2011 4,437 mandays 2,662 mandays
P.B + P.I4,437 mandays @ RM
9.372,662 mandays @ RM
9.37
RM = RM 41,574.69 = RM 24,942.94
TOTAL SAVING ON P.B + P.I = RM 16,631.75B. Saving on recruitment cost – General Expenditure
Saving - 8 workers @ RM 1,280.35 / head = RM 10,242.80
GRAND TOTAL = RM 16,631.75 + RM 10,242.80
= RM 26,874.55
HUMAN CAPITAL DEVELOPMENT
IMPAC
• PLASMA• ACADEMY HEVEA• WISDEC• KOKO• KENAF• LADA
SMART PARTNERSHIP
• GOVERNMENT AGENCIES
• LOCAL UNIVERSITIES• RISDA• MARDI• PRIVATE SECTOR
Mechanization
Skilled & semi-skilled
labours
15MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
INIT
IATIV
ES
TA
KEN
HUMANCAPITAL
DEVELOPMENT
THE WAY FORWARD
MPIC will provide continuous support for plantation and commodities industry
Commodities sector to adopt mechanization
Welcome smart partnership between IMPAC and the plantation industry
16MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
TH
E W
AY
FO
RW
AR
D
17
THANK YOU
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES