Malaysia

Rising palm oil prices cause of construction labour shortage: minister

Datuk Seri Fadillah Yusof says workers attracted to plantation sector seeking higher wages

Updated 1 year ago · Published on 10 Jun 2022 5:15PM

Rising palm oil prices cause of construction labour shortage: minister
Senior Works Minister Datuk Seri Fadillah Yusof (centre) speaking to media after participating in the Sarawak FTRoadpedia Tour programme, which aims to monitor the current development of the Sarawak Pan Borneo Highway in several Sarawak districts. – Bernama pic, June 10, 2022

SIBU – The increase in palm oil prices in the plantation sector has attracted workers from other sectors, said Senior Works Minister Datuk Seri Fadillah Yusof.

He added that the phenomenon had also affected the construction sector as its workers had moved to the plantation sector.

The impact of the construction workers shortage can be seen through the delays in completion for several construction projects, including the Pan Borneo Highway project.

“(Palm oil price is good now) and they (palm oil industry players) are willing to pay any fee to hire workers, and one of the victims is the construction sector.

“The construction sector (makes payments to workers) based on market value and skill level of the workers,” he told reporters after participating in the Sarawak FTRoadpedia Tour programme at the Selangau flyover here today.

Organised by the Works Ministry, the programme kicked off yesterday and ends tomorrow, aiming to monitor the current development of the Sarawak Pan Borneo Highway in the Kuching, Bintulu, Sibu and Miri districts.

Elaborating further, Fadillah said attracting workers from one sector to the other was a form of market competition, occurring not only in Sarawak but nationwide.

“Thus, there are some companies that use head-hunters for recruitment. The respective industries must find ways to offer better benefits to retain their workers,” he said.

Yesterday, Fadillah said many workers involved in the Pan Borneo Sarawak project had returned to their countries of origin due to the Covid-19 pandemic.

He said this resulted in contractors for the highway project now working with only 70% of its pre-pandemic workforce capacity. – Bernama, June 10, 2022

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