UNIVERSITI TEKNOLOGI MARA (UITM)
CAWANGAN PAHANG ,CAMPUS JENGKA
INTRODUCTION TO PLANTATION INDUSTRY
(AGR 405)
CASE STUDY :
CURRENT ISSUES THAT RELATED TO PLANTATION INDUSTRIES
( LABOUR FORCE PARTICIPATION OF RURAL YOUTH IN
PLANTATION SECTOR)
NAME STUDENT ID
ADAM BIN ZAKARIA
2020656374
IZWAN AZRIEN BIN RASLI
2020279394
MOHD SAIFULREEZAL BIN HASHIM
2020831496
SYED MUHAMAD AIZUDDIN BIN SAID HAMZAH
2020682562
MUHAMMAD FIRDAUS BIN AB MANAF
2020246174
SHAZRUL JIZAN BIN JEMAN
2021189883
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TABLE OF CONTENTS
NO. CONTENTS PAGE
1. INTRODUCTION 3-4
2. ISSUES 5-9
3. RECOMMENDATION 10-13
4. CONCLUSION 14
5. REFERENCES 15
6. APPENDICES 16
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1.0 INTRODUCTION
Malaysian agriculture is labor-intensive, particularly in oil palm farms.
According to 2013 statistics, 69% of the plantation workers in oil palm plantations are
foreign, while 31% are native. This fraction reflects the lack of enthusiasm among
locals in working in the sector, which has led in a large influx of foreign workers. It is
claimed that the cost of recruiting foreign workers has risen owing to escalating
social and security issues generated by foreign workers, resulting in a hidden cost to
palm oil production. The purpose of this research is to look at the causes of local
youthful manpower shortages in the oil palm plantation sector in Perak, Perlis, and
Kedah. Malaysia might lessen its reliance on foreign workers by discovering
occupational opportunities.
Malaysia can lessen its reliance on foreign workers by finding rural youth
vocational interests in oil palm plantations. A survey questionnaire is used to collect
data using a random and purposeful sampling procedure. A total of 332 respondents
from rural young labours living in FELDA and FELCRA districts were examined using
the Probit model. Age, wage, wage squared, gender, degree of education, and
mother's work all contribute to the likelihood of participating in an oil palm farm,
according to the findings. Attraction elements that may promote local youth
engagement in the plantation industry include improvements to the working
environment, employment status, facilities, and benefits in the plantation field.
According to a study team lead by Norehan Abdullah (2016) from the Siti
Aznor Ahmad Universiti Utara Malaysia, the oil palm sector is critical to Malaysia's
economy but has problems owing to globalisation. Gender has been discovered to
be an important role in acceptability, attitude, and knowledge of working in oil palm
farms. To recruit rural youth to the business, efforts must be made to reduce the
negative impact of foreign labour and enhance basic infrastructure. Because of its
economic benefits, the sector is anticipated to develop further. Local youthful labour
is in limited supply in the oil palm plantation sector in Perak, Perlis, and Kedah. The
study's majority of respondents are guys aged 20 to 29 with a good attitude towards
working in oil palm plantation.
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"Government or private policies can encourage rural youth to participate in the
oil palm industry by focusing on attraction factors," according to one aspect of the
findings. "According to a previous Sulin study, the plantation career is an unsecured
job," Abdullah indicated.
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2.0 ISSUES
Oil palm industry forms the economic backbone of Malaysia and continues to
face new challenges in the face of globalization. As of 2012, a total planted oil palm
in Malaysia is about 5, 392,235 hectares (MPOB 2014). Palm oil is exported to 145
countries around the world and making it an economic generator in the agriculture
sector (MPOB 2012). The increase in commodities is expected to continue based on
its advantage and ability to generate income to oil palm cultivation in Malaysia.
Sufficient force is crucial to ensure the punctuality and efficiency of the farm
operation to meet the need of Malaysian palm oil industry. Statistic produced by the
Labour Department shows a total of 300,000 foreign workers are currently employed
in farm and industrial commodities, especially in oil palm plantations (Che Johari
2008).The current percentage of foreign employment has decreased due to several
factors.
Majority of the respondents are men with age between 20 to 29 years old and
some of them do enrol in undergraduate program. Majority of the youth in Perak,
Perlis and Kedah have a high and positive acceptance, attitude and knowledge
towards working in oil palm plantation. From the result by Probit test, it is clarified
that gender is a significant factor to create a better acceptance, attitude and
knowledge towards working in oil palm plantation. Most farmers are male and almost
all are married; family labour in farming activities will be effective. Illiteracy level was
higher among the farmers in the study area and majority of them use farm labour in
marketing activities, there is a large household size in the area. The data collected
managed to fulfil the objective of this study which is to reveal any difference that
might occur between male and female respondent in their acceptance, knowledge
and attitude towards plantation sector.
Oil palm industry forms the economic backbone of Malaysia and continues to
face new challenges in the face of globalization. From the result of Probit test, it is
clarified that gender is a significant factor in creating a better acceptance, attitude
and knowledge towards working in oil palm plantation. The data collected managed
to fulfil the objective of this study which is to reveal any difference that might occur
between male and female respondent in their acceptance, knowledge and attitude
towards plantation sector. We have identified the options to minimize the negative
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impact of total foreign workers in the oil palm plantation while maximizing the
potential for social and economic benefits through re-assessing the environmental
and socioeconomic benefits of working in the oil palm plantation. Employee Pension
Fund (EPF) and better basic facilities in the estates are identified as factors need to
be improved to attract rural youth to participate or work in this sector. Government or
private policies focusing on these attraction factors can encourage the rural youth to
participate in the oil palm industry.
While higher levels of education generally correlate with increased
environmental awareness and pro-environmental behaviours, there can be instances
where individuals with advanced education may be less likely to participate in
plantation activities. According to Norehan et. al (2016), the respondent with the
education of SPM has the highest involvement in plantation at 49.10 %. But with the
degree, Master and PHD only 5.40% involved in plantations. This is because rural
youth labour most likely to disengage in farming in the village and migrate to the
urban area for a better job opportunity according to their education levels. Individuals
with higher education often pursue careers in urban areas, which may limit their
direct involvement in plantation activities that are typically more prevalent in rural or
suburban settings. A demand of a professional career and city lifestyle may leave
less time for direct participation in hands-on environmental activities.
Besides that, the substandard of education and standard of living are also the
factors that prevent the local to work in plantation field. Lack of education or access
to quality education can limit individuals' awareness and understanding of the
importance of environmental conservation, including the benefits of plantation
activities. Without proper education, individuals may not be equipped with the
knowledge and skills needed to engage in sustainable agricultural practices, which
includes tree planting (Mariam et. al ,2012). People with advanced education may
experience a disconnect from nature, especially if they live in urban environments
where green spaces are limited. This can reduce the perceived relevance of
plantation activities in their daily lives. Higher education often involves rigorous
schedules and commitments. Time constraints may make it challenging for
individuals to allocate time for hands-on environmental activities.
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Because of the rural environment, students from higher education institutions
with a background in agriculture and the highest level of acceptance are not
interested in working on plantations. It's possible that rural areas lack the necessary
infrastructure for healthcare, education, and transportation. For people used to city or
suburban conveniences, this may be a turnoff. One unit increase in education level
will result in a 0.01 percent decrease in the probability of participating, according to
marginal value. It follows that as education levels rise, young people from rural areas
are more likely to leave their rural communities and move to cities in search of better
employment opportunities (Norehan et al. 2016)
According to the study by Mohammad et al., (2014), excessive work load and
high pay are the main reasons why local young are hesitant to work in oil palm
plantations. Employees on palm oil plantations with high salaries will have difficulty
obtaining loan benefits from banking institutions. This could be a compelling
argument for young people to choose a job with a steady income. On the other hand,
most of the work in a palm oil plantation, such as loading and unloading fruit,
maintaining an oil palm plantation, and applying fertiliser, is heavy, dirty, and
dangerous due to inadequate mechanisation.
The nature of tasks in oil palm plantations often involves physically
demanding work such as loading and unloading fruit bunches, maintaining
plantations, and applying fertilizers. These activities can be labor-intensive, requiring
manual labor due to limited mechanization. This heavy workload might deter younger
individuals who prefer less physically taxing jobs. While a higher salary might seem
attractive, paradoxically, it could also pose a challenge for employees when applying
for loan amenities from financial institutions. This situation might arise due to various
reasons as Informal income, In some cases, the salaries provided in certain sectors,
including agriculture or plantations, might not be documented or structured in a way
that financial institutions readily accept as proof of income for loan purposes. Next,
Uncertain employment terms some jobs in agriculture, including those in palm oil
plantations, might not offer stable employment conditions, which can impact loan
eligibility as banks often prefer more stable employment histories.
The work involved in oil palm plantations is often described as heavy, dirty,
and dangerous. The lack of comprehensive mechanization in plantation activities
means that much of the work is manually intensive and may involve exposure to
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challenging working conditions physical strain, tasks like loading and unloading fruit
bunches or maintaining plantations require significant physical effort. Next, safety
concerns, working with heavy machinery, handling fertilizers, and dealing with the
diverse terrain of the plantation can pose safety risks.
Considering the factors mentioned above, younger individuals might be
inclined to seek job opportunities that offer a more stable income without the
physically demanding or risky nature of work found in oil palm plantations. Jobs with
stable incomes, less physical strain, and better prospects for securing loans may be
more appealing to them. In essence, the reluctance of local youth to work in oil palm
plantations is influenced by a combination of factors, including the demanding nature
of the work, concerns about loan accessibility despite higher salaries, and the lack of
mechanization leading to physically demanding and potentially hazardous tasks.
Addressing these issues might involve improving working conditions, offering more
stable employment terms, and enhancing mechanization to attract younger workers
to the industry.
Societal norms and cultural expectations play a significant role in shaping the
choices and opportunities available to individuals, especially in the context of
employment, including plantation work. Traditional gender roles often dictate specific
responsibilities and expectations for men and women. In many cultures, there is a
perception that certain types of work, including manual labor in plantations, are more
suitable for men, while women are expected to take on roles that are perceived as
more 'appropriate' or 'feminine.'Stereotypes regarding physical strength and
endurance may contribute to the belief that plantation work is better suited for men,
making it challenging for women to break into these occupations. Societal norms
may perpetuate stigmas around specific types of work, and plantation jobs might be
viewed as less prestigious or desirable.
This cultural bias can discourage both men and women from pursuing careers
in agriculture, including plantation work. Discrimination based on gender may result
in unequal opportunities and treatment, making it difficult for women to access the
same level of opportunities as their male counterparts. Cultural expectations around
marriage and family responsibilities can impact career choices, particularly for
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women. The perception that plantation work requires long hours and physical labor
may clash with traditional expectations for women to prioritize their roles as wives
and mothers. Concerns about work-life balance and the ability to fulfill familial duties
may discourage young women from considering plantation work as a viable career
option. The absence of visible female role models in plantation management or
leadership positions may contribute to the perception that such roles are not meant
for women.
The lack of representation can limit aspirations and the belief that women can
succeed in these fields. Unequal access to education and vocational training for
women in some societies may limit their exposure to agricultural skills and
knowledge. Without proper training, women may not feel equipped to pursue careers
in plantation agriculture. Gender-based biases in educational systems may guide
women towards fields deemed more suitable for them, often excluding agriculture.
Social pressure from family, peers, and the community can strongly influence the
career choices of young people. If cultural norms discourage women from engaging
in plantation work, individuals may face resistance and criticism for choosing such a
career path.
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3.0 RECOMMENDATION
The government is actively seeking methods to get local individuals to engage
in the plantation sector, which currently relies on foreign labour comprising 77
percent of its workforce. According to Deputy Plantation Industries and Commodities
Minister Datuk Datu Nasrun Datu Mansur, the Malaysia Palm Oil Board (MPOB) data
indicates that as of May this year, there were a total of 428,000 individuals employed
in the oil palm industry in Malaysia. Out of the total count, 328,400 individuals are
foreign workers, as the native population shows less interest in participating in the
plantation sector, despite its abundant job prospects. The country's oil palm business
faces a significant risk due to its heavy reliance on foreign labour, particularly if these
people lose interest in working in Malaysia or if there is a change in their country's
policies. The government, through institutions like MPOB, established the Malaysia
Palm Oil Training Centre (PLASMA) as an endeavour to decrease reliance on
foreign labour.
According to him, a total of 2,500 individuals have received training through PLASMA
in Keratong, Pahang. Of them, more than 75% have pursued careers in the
plantation sector, particularly in roles related to machinery operation.
The collaboration between the Institute of Malaysian Plantation and
Commodities (IMPAC) and PLASMA, which serves as a training hub for skills in the
oil palm plantation industry, would lead to an increase in the use of machinery and a
decrease in reliance on foreign labour. Meanwhile, Nasrun stated that the
government has earmarked a sum of RM4.5 million in the 11th Malaysia Plan to aid
the plantation industry in acquiring machinery, with a subsidy of up to 20%.
According to him, these actions by the government aim to enhance the productivity
of the nation's oil palm plantation industry. This will be achieved by providing
incentives for the use of machinery, which is expected to boost the revenue of
plantation operators and smallholders. Regarding the launch of 1CSC, Nasrun stated
that this centre will offer a range of services related to the commodities industry,
including fundamental guidance on all commodities. Additionally, we provide support
for licence and incentive applications, training applications, and complaints related to
the commodities sector.
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The modern palm oil industry has a masculine face. Visitors to plantations can
see men wielding wobbly cutting tools as they slice fruit from palm trees, and heave
the spiky bunches of fruit into trucks. Men drive the bulldozers and excavators
clearing forest to make way for new plantations, and they still make up most of the
faces in corporate boardrooms. But recent investigations have called attention to the
conditions of women in the industry. In plantations, women perform less visible work.
Spreading fertilizer, culling weeds, tending seedlings, gathering loose fruit. They
often do this for low pay, facing unsafe exposure to chemicals and physical and
sexual abuse. The Roundtable for Sustainable Palm Oil identified gender inequity as
one of the most pressing issues facing this big, fast-growing industry. Women’s work
has been vital to the palm oil industry for its entire history.
All about of discrimination gender and this worried will be solved by
technology improvement. All of plantation industry follow about the movement of oil
palm technologies. Technological advancement that goes beyond mechanisation and
yield improvement by producing the best clones of oil palm seeds. The government
has allocated RM60 million to the Mechanisation and Automation Research
Consortium of Oil Palm for agricultural mechanisation technology research and
commercialisation (MARCOP). MARCOP was established to reduce reliance on
foreign labour in the palm oil industry and to develop technologies and innovations
for increased productivity and efficiency via automation. MARCOP is supported by a
grant from the Malaysian government and the Malaysian oil palm industry. Increase
in the labour ratio for FFB cutting is one of the strategy targets for research and
development of mechanisation. Female able to take advantage the technology and
grant from government from now.
The oil palm cutter (Cantas) is one of the machines introduced to the
Malaysian palm oil industry. According to Abdul Razab Jailani, MPOB has received
both positive and negative comments. A majority of respondents agreed that a
motorised oil palm cutter expedites the harvesting process, increases productivity,
and decreases worker demands. However, research should be conducted to address
the machine's drawbacks, including the safety aspect. Under MSPO, safety in the
workplace is mandatory, and it is the employee's and employer’s responsibilities to
implement safe work practises. The operator must be provided with all the Personal
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Protective Equipment (PPE) necessary for operating the machine, and the employer
must establish the standard operating procedure for the work (SOP).
Drone is another tool that has been integrated into high-tech software and is
widely used in the oil palm industry at present. This device has been modified for use
in supervision, particularly for monitoring the progress of replanting or immature
fields. It has also been used for spraying work, locating vacant points, monitoring
undesirable activities such as open burning around the plantation, and monitoring
potential oil palm fruit theft points. The device will benefit the company and reduce
not only manual labour, but also chemical hazards to the workers who performed the
work manually.
Technology is today recognized as a strategic element in raising the
competitiveness of a country’s economy specially in plantation sector. This is
undoubtedly true of the palm oil industry where modern technology plays a crucial
role in aiding industry workers as they perform their duties. The relevant
technologies in the palm oil industry are varied, and they include planting materials,
field machinery, fertilizers, factory equipment, and so forth. Technology is the result
of man’s ingenuity that facilitates and simplifies his activities. Especially in this era of
globalization, technology cannot be divorced from everyday life, with its ubiquity
reflecting our day-to-day living dependency on it.
Ardana and Kariyasa (2016) examined the impact of the application of
technology on the palm oil industry and concluded that it helped considerably in the
selection of superior planting materials, thus leading to higher yield. It is the planting
material that determines whether the subsequent product is of high quality. This is
what will ultimately be responsible for the smallholder’s productivity and income.
Shuib et al. (2011) proposed several aspects of modern technology applicable in the
industry, starting from equipment and machinery that eases the workload of workers
while increasing their productivity. MPOB and the oil palm planting industry as a
whole have introduced a slew of technologies that begin with land clearing and
planting, and later, transporting fruit bunches all the way to the factory. Sowat et al.
(2018) are of the view that new technology applied in harvesting will benefit
smallholders greatly. Such innovation will help save time and money as the number
of workers is reduced; worker injury can also be minimized. One proposal is a small,
portable climbing robot to harvest oil palm fruits. While current research indicates
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that the potential of such an invention can be substantial, its development is still in its
early stages.
Addressing the issues for societal norms and cultural expectations may
discourage young people, especially women, from pursuing plantation work, a
broader societal shift, involving education, awareness campaigns, and policy
changes that challenge gender stereotypes and promote inclusivity. Encouraging
discussions around breaking gender norms and providing equal opportunities for
both men and women in plantation agriculture can contribute to a more diverse and
inclusive workforce.
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4.0 CONCLUSION
In conclusion, the presented text highlights the critical importance of
addressing the labor shortage issue in Malaysia's oil palm plantation sector. The
industry, a significant economic generator in the agricultural sector, heavily relies on
a substantial workforce to ensure punctuality and efficiency in farm operations. The
historical context of international migration in Malaysia, particularly during the British
colonial period, has influenced the composition of the labor force, with a notable
reliance on foreign workers. he government's efforts to reduce dependence on
foreign labor, coupled with a decline in the number of Indonesian migrants, present
challenges to sustaining the current labor-to-land ratio. The ongoing expansion of oil
palm plantations, especially in Sabah and Sarawak, further intensifies the need for a
sufficient workforce. Despite setting quotas for foreign labor, the reliance on manual
labor persists due to a lack of mechanization and high-tech machinery.
The focus on youth employment in the oil palm plantation sector becomes crucial, as
local youth participation is identified as a potential solution to the labor shortage.
However, various factors, including heavy workloads, low salaries, and the
unappealing nature of certain tasks, discourage young individuals from joining the
industry. Efforts to attract local youth involve addressing these concerns,
emphasizing the importance of mechanization to make the work more attractive.
The literature review sheds light on the global perspective of immigration and its
impacts on employment rates and wages. The text discusses conflicting views on
whether immigration has positive or negative effects on the labor market, considering
factors such as productivity, adaptability, and competition between local and foreign
workers.Overall, the presented information emphasizes the need for comprehensive
strategies to address the labor shortage in Malaysia's oil palm plantation sector.
Encouraging local youth participation through improved working conditions, attractive
remuneration, and effective mechanization emerges as a potential solution. As the
industry continues to play a pivotal role in the country's economy, sustainable and
inclusive measures are essential to ensure its growth and stability in the years to
come.
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5,0 REFERENCE
1. (2017, August 6). 77% of plantation workers are foreigners. The Borneo Post.
https://www.theborneopost.com/2017/08/06/77-of-plantation-workers-are-
foreigners/
2. Mariam A., Danial M., Educational quality differences in a middle-income
country: the urban-rural gap in Malaysian primary schools, School Effectiveness
and School Improvement 24(1):1-18 DOI:10.1080/09243453.2012.691425
3. Malaysia Indian Congress. 2012, April19.
http://www.mic.org.my/news-events/national-news/2012/malaysian-no-longer-
dominant-workforce-plantation-sector-pm
4. Mohamad Audong. 2009. Migration of Local Labour: Pull and Push Factor.
Proceeding International Planters Conference 7-21.
5. Mohammad Amizi, A., Norehan, A. & Jamal A. 2014. Repulsion and Attraction
Factors among Local Labor Force in Oil Palm Plantation International
International Journal of Science Commerce and Humanities 2(2): 59-69.
6.
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6.0 APPENDICES
Source : https://www.ukm.my/jem/wp-content/uploads/2021/06/jeko_502-7.pdf
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