1. IMPACT AND CHALLENGES FOR THE OIL PALM INDUSTRY
SYNCHRONISING LABOUR AND MECHANISATION: REDESIGNING APPROACHES
PILIPS and PalmMech SEMINAR 2016

2. IMPACT AND CHALLENGES FOR THE OIL PALM INDUSTRY
OUTLINE
1) Introduction: Does the industry need skill
workforce
2) Technical Vocational Education & Training –
TVET
3) Perception on repulsion and attraction by
locals towards the industry
4) TVET skill support mechanisation
5) Facing the challenges

3. 1) Introduction
 Earlier in 2016, Government suspended new
recruitment and increase levy of foreign
workers
 Abrupt policy change resulted in the industry
reciprocated with dissatisfaction
 Requested for a balance and holistic
engagement from industry players
 Suspension would disrupt operations and levy
hike would impact cost severely
Fortunately, the Government has deferred in
its decision whilst engaging the industry for
more feedback and allowing the government
to upgrade the management of foreign labour .

4. 1) Introduction
• Nation needed 1.3 million skill workforce in the
12 NKEA sectors
• Oil palm sector need at least 20,000 skill
workforce for its plantation operations
Total mature in Peninsula
= 2,315,261ha
Total mature in East Malaysia
= 2,544,136ha

5. 2) What is Technical Vocational Education Training?
"Technical and vocational education is used as a
comprehensive term referring to those aspects of the
educational process involving, in addition to general
education, the study of technologies and related sciences, and
the acquisition of practical skills, attitudes, understanding and
knowledge relating to occupations in various sectors of
economic and social life."
 Conducted by government and private skill
training centers under Department of Skill
Development
 In tandem with government agenda to
increase skill workforce currently about 30% to
50% by 2020
 Attainment of Malaysian Skill Certificate
(SKM), Diploma (DKM) and Advance Diploma
(DLKM)

6. 3) Push factors:
 The 3 D: Dirty, Difficult, Dangerous – similar to
other industry such as oil & gas
 No fixed salary – difficult to apply loans
4) Pull factors:
 EPF & SOCSO contribution
 Pre school education
 Compensation scheme
The above survey findings was conducted by Team from UMK and UUM led
by Faculty of Agro based Industry.
It was concluded in the survey that with the
implementation of mechanisation with a
monthly salary could possibly attract the
locals to work in plantation as it lightens
the heavy duty tasks and having a fixed
salary.

7. 3) How to attract TVET graduates to
support mechanisation…..
 Industry to understand present
National Occupational Skill
Standards (NOSS) and
Malaysian Skill Certificate
(SKM) programs.
 Recognition of the SKM local
graduate skill sets as human
capital and skill resources
 Redesign job specifications and
function according to their skill
sets
 Remuneration according to
their skill sets and capability

8. Legislation
and policy
changes.
Can the
industry
sustain
without
foreign
labour
Industry
Lead Body
(MPOB) &
MPOA to
play active
role in
promoting
skills into
the industry
Involvement
by industry
to build
capacity and
continuous
improvement
with training
providers
Skill sets
quality does
not match
with industry
requirement.
Intensify
engagement
with industry
Stakeholders
commitment
to ensure
local skill to
be employed
for long term
operational
sustainability

9. 1) The industry need to establish an ecosystem to
attract skill train locals into the industry
 Dissemination of information on opprtunities
and prospects in the industry – special niche of
the industry
 Offer better salary packages including
incentives and other amenities
 Will to change – industry and locals alike.
2) TVET graduates with OP course skill certificates
should be given opportunities for employment
 Face challenges on disciplines, attitudes and
behaviour
3) Stakeholders committment towards achieving
these goals
 It is now imperative that the industry and its
stakeholders to make the difference.

11. COMPARISON 3 D BETWEEN OP WITH O&G
OIL PALM OPERATIONS
• Dirty, Difficult, Dangerous
OIL & GAS
• Dirty, Difficult, Dangerous