Less income for Sabah from palm oil sector

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KOTA KINABALU: Sabah is set to earn less from the palm oil sector for the second half of this year due to increasing labour costs as well as volatile crude palm oil (CPO) prices.

Chief Minister Datuk Seri Hajiji Noor said the industry was facing tough times because of the rise in wages as well as higher fertiliser and operating costs.

“Hence, it is vital that the board of directors and management teams of government-linked companies involved in the palm oil industry carefully monitor matters related to operational cost and staff productivity,” he said when chairing the 137th Sabah Softwoods Bhd board meeting at his office in Menara Kinabalu here yesterday.

“I want the board of directors and management team to find ways and means to resolve the shortage of labour as well as logistical challenges that have impeded the production of oil palm fresh fruit bunches,” he said.

 

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