IMPACT AND CHALLENGES FOR THE OIL PALM INDUSTRY

SYNCHRONISING LABOUR AND MECHANISATION: REDESIGNING APPROACHES

PILIPS and PalmMech SEMINAR 2016

IMPACT AND CHALLENGES FOR THE OIL PALM INDUSTRY

OUTLINE

1) Introduction: Does the industry need skill workforce

2) Technical Vocational Education & Training –TVET

3) Perception on repulsion and attraction by locals towards the industry

4) TVET skill support mechanisation

5) Facing the challenges

1) Introduction

Earlier in 2016, Government suspended new recruitment and increase levy of foreignworkers

Abrupt policy change resulted in the industryreciprocated with dissatisfaction

Requested for a balance and holisticengagement from industry players

Suspension would disrupt operations and levyhike would impact cost severely

Fortunately, the Government has deferred in its decision whilst engaging the industry for

more feedback and allowing the government to upgrade the management of foreign labour .

1) Introduction

• Nation needed 1.3 million skill workforce in the 12 NKEA sectors

• Oil palm sector need at least 20,000 skillworkforce for its plantation operations

Total mature in Peninsula = 2,315,261ha

Total mature in East Malaysia = 2,544,136ha

2) What is Technical Vocational Education Training?

"Technical and vocational education is used as acomprehensive term referring to those aspects of theeducational process involving, in addition to generaleducation, the study of technologies and related sciences, andthe acquisition of practical skills, attitudes, understanding andknowledge relating to occupations in various sectors ofeconomic and social life."

Conducted by government and private skilltraining centers under Department of SkillDevelopment

In tandem with government agenda toincrease skill workforce currently about 30% to50% by 2020

Attainment of Malaysian Skill Certificate(SKM), Diploma (DKM) and Advance Diploma(DLKM)

3) Push factors:

The 3 D: Dirty, Difficult, Dangerous – similar to other industry such as oil & gas

No fixed salary – difficult to apply loans

4) Pull factors:

EPF & SOCSO contribution

Pre school education

Compensation schemeThe above survey findings was conducted by Team from UMK and UUM ledby Faculty of Agro based Industry.

It was concluded in the survey that with theimplementation of mechanisation with amonthly salary could possibly attract thelocals to work in plantation as it lightensthe heavy duty tasks and having a fixedsalary.

3) How to attract TVET graduates tosupport mechanisation…..

Industry to understand presentNational Occupational SkillStandards (NOSS) andMalaysian Skill Certificate(SKM) programs.

Recognition of the SKM localgraduate skill sets as humancapital and skill resources

Redesign job specifications andfunction according to their skillsets

Remuneration according totheir skill sets and capability

Legislation and policy changes.

Can the industry sustain without foreign labour

Industry Lead Body (MPOB) & MPOA to

play active role in

promoting skills into

the industry

Involvement by industry to build capacity and continuous improvementwith training providers

Skill sets quality does

not match with industry requirement.

Intensify engagement with industry

Stakeholders commitment to ensure local skill to be employed for long term operational sustainability

1) The industry need to establish an ecosystem to attract skill train locals into the industry

Dissemination of information on opprtunitiesand prospects in the industry – special niche of the industry

Offer better salary packages includingincentives and other amenities

Will to change – industry and locals alike.

2) TVET graduates with OP course skill certificatesshould be given opportunities for employment

Face challenges on disciplines, attitudes and behaviour

3) Stakeholders committment towards achievingthese goals

It is now imperative that the industry and itsstakeholders to make the difference.

COMPARISON 3 D BETWEEN OP WITH O&G

OIL PALM OPERATIONS

• Dirty, Difficult, Dangerous

OIL & GAS

• Dirty, Difficult, Dangerous