Sime Darby Plantation to recruit only locals by end-2027 with RM3,000 minimum wage

According to SDP’s group managing director Mohamad Helmy Othman Basha, this move would help the plantation company reduce its dependency on foreign workers and propel it towards increasing mechanisation and automation on the ground.

“The end game is to reduce manpower as much as possible. For Malaysia, we want to recruit our locals. We want to have 100% local workers. I know it’s a lofty target , but it is where we are moving by the end of 2027 with a minimum wage of RM3,000,” said Mohamad Helmy at the 34th Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2023) on Tuesday (March 7).

He added that prior to the  Covid-19 pandemic, the integrated palm oil producer hired 75% of foreign workers to work on the estates, while 25% represented local hires.

“We are now only 60% foreign workers and 40% local.We want to change the prevailing perception of the plantation sector as a dirty, dangerous and difficult industry. We want to make the job easier and not laborious. Of course at the same time, cost and productivity is important,” said Mohamad Helmy.

He added that SDP aims to increase its land-labour ratio for oil palm plantations to 1:17.5 hectares (one worker to 17.5 hectares) from its current ratio of 1:15 hectares.