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SDP to cut 55% of plantations workers with mechanisation

admin2022-10-281

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,Sime Darby Plantation group managing director, Mohamad Helmy Othman Basha

PETALING JAYA: Sime Darby Plantation Bhd (SDP) expects to eliminate the need for manual workers in all non-harvesting activities by the end of 2023 after it has successfully mechanised several tasks across its Malaysian plantation operations.

“We expect to reduce the number of plantation workers by 55% by the end of 2023 and by the end of 2024, improve our land-to-man ratio to 1:17.5 or one worker for every 17.5 hectares (ha),” SDP group managing director Mohamad Helmy Othman Basha said in a statement.

The current industry average is one worker for every eight ha. As dependence on manual labour decreases, SDP also expects to improve productivity.

Mohamad Helmy also unveiled seven new initiatives, several of which are industry firsts that the company had developed internally or co-developed with start-ups and technology providers.

Several of these initiatives have already been implemented across the plantation group’s Malaysian operations, while others are either in prototype or concept stage.

“After more than 100 years of working the same way, heavily dependent on manual and menial labour, our industry can finally move forward,” he said.

SDP aims to have a 100% local workforce for its Malaysian plantation operations by the end of 2027.

In SDP’s Malaysia operations, drones have replaced over 100 workers who, historically, had carried backpacks of chemicals to spray young seedlings in nurseries, it said.

“The palm oil industry is typically, highly labour-intensive. Prior to the pandemic, 80% to 85% of the plantation operations’ workforce were migrant workers, though at SDP, foreign workers accounted for about 75% of the plantation workforce,” SDP said.


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