Transcript IPiSEX2012 - Exhibition

INTERNATIONAL PLANTATION INDUSTRY
CONFERENCE AND EXHIBITION
(IPiCEX2012)
5th November 2012
ISSUES AND CHALLENGES ON
LABOUR IN PLANTATION INDUSTRY:
A MALAYSIAN PERSPECTIVE
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES (MPIC)
SCOPE OF THE PRESENTATION
Introduction
• 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
Issues
• Low participation of local workers
• High dependency on foreign workers
• Mechanization related issues
Challenges
• To modernize the plantation sector by 2020
• To increase local workers participation in plantation sector
Initiatives Taken
• Foreign workers approval
• Innovations in the plantation and commodities sector (Mechanization)
• Human capital development
Way Forward
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
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INTRODUCTION
CONTRIBUTION OF THE COMMODITY INDUSTRIES TO THE ECONOMY OF
MALAYSIA (2007 – 2011)
Source : Department of Statistics, Malaysia
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
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INTRODUCTION
NATIONAL KEY ECONOMIC AREA (NKEA)

Contribution to Gross National Income

Palm Oil – RM178 billion

Rubber – RM52.9 billion
Exports
RM242.6b
GDP
RM28.5b

Focus on high value added products/
downstream activities
GNI
Palm Oil
RM178b
Rubber RM52.9b
Entry Point Projects
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
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INTRODUCTION
LABOUR REQUIREMENT IN PLANTATION SECTOR (2012)
Commodity
Foreign
10 : 1
94,774
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)
6,089,460
721,158
601,006
331,629
932,635
110,364

2
299,560
Total
(B)
502,796
1

Local
394,334
Labour
Shortag
e
(A - B)
5,027,959


Existing Labour (Sept. 2012)
Palm Oil
Total

Area
(Hectare)
Ideal
Labour
Land:Labour
Requireme
Ratio
nt
(Hectare/
(A)
Rerson)
108,462
415,929 are rubber owner-operators. Shortage still happens for rubber sector, mainly in estates.
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
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
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INTRODUCTION
ACTUAL LABOUR SHORTAGE IN PALM OIL ESTATES
(AS AT SEPTEMBER 2012)
Job Categories
Harvester & FFB Collector
Field Workers (Weeding, Fertilizer
application & Pruning)
Other than field workers (Gardener,
drivers & Security guard)
Others (Mondore, etc)
Total Shortage
P.M
Sabah
Sarawak
Malaysia
Shortage
(%)
6,029
2,877
3,339
12,245
46.79
4,684
1,725
3,506
9,915
37.89
911
616
902
2,429
9.28
757
331
490
1,578
6.03
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 (%)
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
92.31
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ISSUES
LOW PARTICIPATION OF LOCAL WORKERS
Lack Of Interest
Soybean Harvesting in
Iowa, United States
• Due to the 3D factors (Dirty, Difficult &
Dangerous)
• Location of workplace in rural areas
• Inadequate infrastructure facilities at
plantation area
Higher Level Of
Education
• 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)
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
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ISSUES
HIGH DEPENDENCY ON FOREIGN WORKERS
Plantation Sectors Are
Labour Intensive
Mechanized Harvesting In
Developed Countries
• Lack of mechanization
• Insufficient supply of local labour
• Employment of the illegal immigrants (PATI)
still exist
• Too dependent on Indonesian workers
Difficulties In Recruiting
Foreign Workers
• The development of palm oil industry in
Indonesia
• Competition with other sectors and nations
that requires foreign workers
• High cost of employing foreign workers
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
Soybean Harvesting
Sweet corn Harvesting
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ISSUES
MECHANIZATION RELATED ISSUES
Difficulties in implementing mechanization
• Difficult and undulating terrain
• High cost of mechanization
• Complacency – resistance to change
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
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CHALLENGES
TO MODERNIZE PLANTATION SECTOR BY 2020
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
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
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CHALLENGES
TO INCREASE LOCAL WORKERS PARTICIPATION IN PLANTATION SECTOR
Enhancing Skills of The Domestic Labour Force
• 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
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
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INITIATIVES TAKEN
APPROVAL OF FOREIGN WORKERS (AS AT 30th SEPTEMBER 2012)
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
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
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INITIATIVES TAKEN
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
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
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INITIATIVES TAKEN
FINDINGS ON PERFORMANCE OF CANTAS BY KULIM (PILIPS’12)
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)
No. of harvester require
20 harvester
12 harvester
292 days
292 days
4,437 mandays
2,662 mandays
4,437 mandays @ RM 9.37
2,662 mandays @ RM 9.37
= RM 41,574.69
= RM 24,942.94
Days work in 2011
Total Mandays in 2011
P.B + P.I
RM
USING CANTAS
(ACTUAL)
TOTAL SAVING ON P.B + P.I = RM 16,631.75
B. 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
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
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INITIATIVES TAKEN
HUMAN CAPITAL DEVELOPMENT
IMPAC
Mechanization
• PLASMA
• ACADEMY HEVEA
• WISDEC
• KOKO
• KENAF
• LADA
HUMAN
CAPITAL
DEVELOPMENT
Skilled & semiskilled labours
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
SMART
PARTNERSHIP
• GOVERNMENT AGENCIES
• LOCAL UNIVERSITIES
• RISDA
• MARDI
• PRIVATE SECTOR
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THE WAY FORWARD
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
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
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THANK YOU
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
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