Crackdown on Illegal Malaysian Workers... Palm Oil Industry in Dilemma

'Red Zone' with 41 Confirmed Cases
All Residents Detained in Quarantine Facility

[Asia Economy Kuala Lumpur Hong Seong-ah, Guest Reporter] Since the outbreak of the novel coronavirus disease (COVID-19), Malaysia has been intensively cracking down on illegal foreign workers. There are concerns about the damage to the palm oil industry, which heavily depends on foreign labor.

According to local media such as Financial Post on the 2nd, Malaysia has restricted the entry of foreigners and strengthened crackdowns on foreign workers residing in the country since implementing the Movement Control Order (MCO). In particular, since last month, all illegal residents living in 'Red Zones' where more than 41 confirmed cases have occurred have been detained in camps as part of a tough policy. As a result, from the 1st to the 28th of last month, about 4,300 illegal residents were detained in camps, repatriated, or forcibly deported.

The decrease in foreign workers has become a blow to Malaysia's palm oil industry. Palm oil is used for edible and industrial purposes, and is known for being easy to transport in solid form and having high productivity.

The proportion of foreign labor in Malaysia's palm oil industry is absolute. According to the Immigration Department, there are 2.2 million registered foreigners in Malaysia, but human rights organizations and the International Organization for Migration estimate that there are about 2.5 to 4 million illegal residents. Currently, there are 260,000 foreign workers registered in the plantation industry, and even including Malaysians, the total is only 480,000. If there is a labor shortage, timely harvesting becomes difficult. Malaysia is the world's second-largest palm oil producer, producing palm oil on 18% of its total farmland.

The palm oil industry insists that countermeasures are necessary. Nagib Owhab, Chairman of the Malaysian Palm Oil Association, said, "Many workers have returned to their home countries en masse or gone underground due to strict crackdowns, resulting in a labor shortage," and added, "We need to extend foreign workers' visas and ease entry restrictions on them."

However, the Malaysian government maintains the fundamental stance that citizens should be employed. Mohd Khairuddin Aman Razali, Minister in charge of the Plantation Industry, said, "For the time being, hiring new foreign workers is impossible, and foreign workers whose labor visas have expired must leave the country." Kuala