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Sime Darby urges Sabah govt to rethink closure of palm oil plantations during MCO

A worker shows oil palm fruits at a plantation in Kuala Selangor January 2, 2020. — Picture by Yusof Mat Isa
A worker shows oil palm fruits at a plantation in Kuala Selangor January 2, 2020. — Picture by Yusof Mat Isa

KUALA LUMPUR, April 1 — Sime Darby Plantation Berhad (SDP) have now joined the Malaysian Palm Oil Association (MPOA) and the Malaysian Estate Owner Association (MEOA) in asking the Sabah state government not to order the closures of palm oil estates and mill operations in Sabah during the movement control order (MCO).

In a statement, SDP said the decision to expand the shutdown of palm oil operations to a total of six districts in Sabah will account for 75 per cent of the state's crude palm oil production.

“SDP believes that the initiative on containment needs to be balanced with considerations to not jeopardize industries recognised by the National Security Council (NSC) as essential to avoid potentially adverse and severe implications arising from the decision.

“We are hopeful that the state government of Sabah will take MPOA’s concerns into account and reconsider its decision,” the statement read.

SDP said the move would be in line with the NSCs directives to continue with parts that are deemed essential by adhering to conditions and guidelines provided by the NSC.

“On this note, SDP has worked with the authorities and made adjustments to the operations at our estates and mills to be in strict compliance with these conditions and guidelines.

“We believe the same has been implemented by other responsible palm oil companies to ensure that the essential parts of their operations will continue to remain productive during this difficult period for the country, whilst ensuring risks to the safety and health of all workers are effectively mitigated,” SDP said.

Earlier today, MPOA and MEOA estimated a total revenue loss of RM860 million for closure that lasted a month in Sabah.

In a joint statement, they pointed out there would also be a loss of RM57 million in revenue from the 7.5 per cent palm oil sales tax.

Some 100,000 workers will be affected as well, they said.

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