KOTA KINABALU – Sabah’s palm oil industry is entering a tough phase due to higher labour, fertiliser, and operational costs, Sabah Chief Minister Datuk Seri Hajiji Noor said.
Fluctuations in crude palm oil (CPO) prices from week to week is another factor, he said in a statement today.
“At the time, the CPO price is about RM3,500 to RM5,000 per metric tonne, and it will cause a decrease in Sabah’s revenue to be compared to early 2022.
“Hence, the board of directors and management teams of government-linked companies must be involved in monitoring and controlling the operational cost and workers’ productivity in the palm oil sector,” he said.
Hajiji, who is also chairman of Sabah Softwoods Bhd, said this when chairing the Sabah Softwoods Bhd’s board of directors’ meeting at his office here today.
He said Sabah Softwoods Bhd had performed well in the first half of 2022 with an increase in revenue due to good CPO prices, even though its fresh fruit bunches and CPO production volume did not meet the target.
He asked the board of directors and the management team to find ways to solve the labour shortage and logistical problems that have been obstructing the production of fresh fruit bunches.
Hajiji, who is also Sabah finance minister, is optimistic that Sabah Softwoods can pay more dividends to shareholders and benefit its workers through salary payments and bonuses. – The Vibes, December 2, 2022
