Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Open access

The Covid-19 pandemic has had a great impact on the palm oil industry in Malaysia. This includes the issue of retrenchment of foreign workers. Sarawak is the main oil palm cultivation state in Malaysia which is affected by this problem. The land area is vast but faces the problem of labour shortage. Retrenched foreign workers will be replaced by local labour. However, the average local is less interested in working in this industry. Most smallholders prefer to use imported labour which is considered more productive. Therefore, this study aims to identify some strategies to increase local labour utilization in oil palm agriculture in Sarawak. Due to the Covid-19 pandemic, the country has stopped the recruitment of new foreign workers entering to work in Sarawak since March 2020. This study uses a qualitative method in conducting research on local labour and the strategies to increase local labour utilization in oil palm agriculture in Sarawak. The results show that among the strategies that can be used currently are, to get the local community involved, increase the level of mechanization, raising the minimum wage, youth Involvement, and empower the training centre. The implication of this study is that stakeholders in Sarawak can take immediate steps to ensure that oil palm production is not severely affected.

Abdul Razak J., Rizal, M. A., Ikmal, M. H., Yosri G., Zahara, M., Syahmin S., Asyraf, A., Azwan, B., Amirulrashid, M., Borhan, S., Azman I., Solah D., Rahim, S., Norman, K., & Kushairi, A. (2017). Development and Evaluation of New generation oil palm motorised cutter (Cantas Evo). Journal of Oil palm Research : 1-13.
Abdullah, N., Ahmad, S. A., & Ayob, M. A. (2016). Labour force participation of rural youth in plantation sector of North Peninsular Malaysia. Journal Ekonomi Malaysia 50(2): 83-92.
Afzal, M., & Nasir, Z. M. (1987). Is female Labour force participation really low and decliningin Pakistan? A look at alternative Data Source. The Pakistan Development Review Vol XXVI(4): 700-709.
Agwu, N. M., Nwankwo, E. E., & Anyanwu, C. I. (2014). Determinants of Agricultural labour participation among youths in Abia State, Nigeria. International Journal of Food and Agricultural Economics Vol 2(1): 157-164.
Ayob, M. A., Abdullah, N., Ali, J., & Kamaruddin, R. (2015). Perception of local youth in Sabah towards career in oil palm plantation. Asia Pacific Journal of Advanced Business and Social Studies 1(1): 239-246.
Ismail, A. (2013). The Effect of Labour Shortage in the Supply and demand of oil palm in Malaysia. Oil palm Industry Journal Vol 13(2): 15-25.
Barbara, T., Alastair, B., & Sophia, D. 2013. Determinants to leave agriculture and change occupational sector: Evidence from an Enlerged EU. Factor Markets Working Paper 46: 1-22.
Bill Rosenberg. (2010). Real Wages and Productivity in New Zealand. Working paper. Labour, Employment and Work in New Zealand. New Zealand Council of Trade Unions Te Kauae Kaimahi Wellington 2010.
Crowley, M. Z. (2020). Foreign Labor Shortages in the Malaysian Palm Oil Industry: Impacts and Recommendations. Asian Journal of Agriculture and Development, 17(2): 1-17. https://doi.org/10.37801/ajad2020.17.2.1).
Channel News Asia. (2020). COVID-19 pandemic forces Malaysian palm industry to rethink reliance on foreign labour.
https://www.channelnewsasia.com/news/asia/covid-19-malaysia-palm-oil-industry-local-foreign-labour-13030166.
Department Statistics of Malaysia. (2020). Guna tenaga, Produktiviti dan Upah: Newsletter. https://www.dosm.gov.my/v1/uploads/files/6_Newsletter/Newsletter%202020/DOSM_MBLS_3-2020_Siri-41.pdf [04 February 2021].Employment Act1955 (Malaysia)Faridi, M. Z., & Basit, A. B. (2011). Factors determining rural labour supply: A micro analysis. Pakistan Economic and Social Review Vol 49(1): 91-108.
Fuad, M. B., & Sarina S. N. (2015). Buruh Indonesia di Tawau, Sabah: Satu Kajian Kes. Prosiding Economics and Finance, Simposium Ekonomi, Kewangan dan Perbankan, SEFB 2014, hlm, 1-10.
Free Malaysia Today. (2021). Sarawak falls short on palm oil despite having largest plantation area.https://www.freemalaysiatoday.com/category/nation/2021/03/29/sarawak-falls-short-on-oil-palm-despite-having-largest-plantation-area/.
Gratton, L., & Ghoshal, S. (2003). Managing Personal Human Capital: New Ethos for the ‘Volunteer’Employee. European Management Journal 21(1): 1–10.
Hasami, H. (2013). Tingkat Produktiviti Buruh dan Kadar Pengangguran dalam Pembangunan Ekonomi Wilayah Pantai Timur (ECER). Prosiding PERKEM VIII, Jilid 2, hlm. 850-860.
Hirschmann, R. (2021). Areas planted for oil palm Sarawak, Malaysia 2010-2019. file:///C:/Users/User/Desktop/•%20Malaysia_%20oil%20palm%20total%20planted%20areas%20in%20Sarawak%20_%20Statista.html.
International Labour Organization. (2003). ILO Glossary of Statistical Terms. https://www.ilo.org/ilostat-files/Documents/Statistical%20Glossary.pdf [04 February 2021].
Jusoh, M. A., Omar, A. R. C., & Ahmad, A. (2017). Tahap pengetahuan pelajar dalam industri sawit di Malaysia. Management Research Journal, 7(1): 154-162.
Kamaruddin, R., Abdullah, N., & Ayob, M. A. (2018). Determinants of jobs satisfaction among Malaysian youth working in the oil palm plantation sector. Journal of Agribusiness in Developing and Emerging Economies 8(4): 678-692.
Kementerian Pengajian Tinggi. (2010). Hala Tuju bidang Pertanian. Shah Alam: Penerbit Universiti Teknologi MARA.
Lembaga Minya Sawit Malaysia (MPOB). (2021). Pusat Tunas, Malaysian Oil palm Board. http://palmoilpedia.mpob.gov.my/pusat-tunas-mpob/ [02 Febuari 2021].
Halib, M. (2004). Peranan Tanaman Padi Dalam Pembangunan Di Malaysia : AnalisisSejarah Dan Kontemporari. Journal of Southeast Asian studies Vol 9:189-212.
Zainuddin, M. Z. (2020). MPOB cadang insentif tarik pekerja tempatan ke lading sawit. Berita Harian Online, 24 Ogos:1.
Nailah, H., Noorsiah, S., & Abu Hassan, M. D. (2011). Upah dan Produktiviti Buruh: Satu Analisis dalam sector Pembuatan. Prosiding PERKEM VI, Jilid 2, hlm. 319-331.Palazuelos, E,. & Fernandez, R. 2001. Demand, employment, and labour productivity in the European economies. Structural Change and Economic Dynamics Volume 20 (1): 1-15.
Roslina, K., & Norehan, A. (2018). Determinants of job satisfication among Malaysian youth working in the oil palm plantation sector. Journal of Agribusiness in Developing and Emerging Economies Vol 8 (4): 678-692.
Saad, S., Selvadurai, S., Isnin, M. K. A., Basaruddin, N. H., & Mansor, N. H. (2016). Sustainability of youth involment in oil palm sector. International Journal of Management and Applied Science, 2(10): 89-93.Sarawak Labour Ordinance 1952 (Malaysia).
Surianshah, W. N. S., Sieng, L. W., Salleh, M. N. M., Idris, S. H. M., & Janor, H. (2020). Faktor mempengaruhi penglibatan belia dalam sektor perladangan kelapa sawit. International Journal of Management Studies, 28(1): 115-140.
Vietnam. (2021). COVID-19: Malaysia’s Sarawak state reels from foreign workers’ ban
https://en.vietnamplus.vn/covid19-malaysias-sarawak-state-reels-from-foreign-workers-ban/187438.vnp.
Yoon, D. (2018). Rising unemployment among young people and improved employment policy: The case of South Korea. Economics and Socialogy 11(4): 246-264.

In-Text Citation: (Saad et al., 2021)
To Cite this Article: Saad, S., Zaimah, R., & Lyndon, N. (2021). Use of Local Labour in Oil Palm Agriculture. International Journal of Academic Research in Business and Social Sciences, 11(9), 205–215.