What percentage drop in production is linked to worker shortages?

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Production Decline Linked to Worker Shortages

A significant drop in the production of fresh fruit bunches, ranging from 20 to 30 per cent, has been directly attributed to the prevailing labour shortage within the oil palm plantation sector. This decline underscores the critical impact of insufficient manpower on the industry's output.
Extent of Production Loss

The shortfall in available workers has led to a substantial reduction in the output of fresh fruit bunches. This decline is estimated to be between 20 per cent and 30 per cent, a figure that highlights the severity of the labour challenges faced by plantation companies.
Impact of Border Closures

The labour shortage is largely a consequence of border closures implemented to curb the spread of Covid-19. These measures have limited the inflow of foreign workers, who are essential for plantation operations. Sime Darby Plantation Bhd estimates the industry is short of approximately 70,000 workers.
Financial and Operational Consequences

Beyond the direct impact on production volume, the labour shortage results in lost tax revenue for the government. Plantation companies are therefore urged to explore alternative strategies beyond reliance on foreign labour to mitigate these ongoing issues.

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What percentage drop in production is linked to worker shortages?

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