KUALA LUMPUR (April 1): FGV Holdings Bhd (FGV) has added its voice to concerns raised by the Malaysian Palm Oil Association (MPOA) and the Malaysian Estate Owner Association (MEOA) over a recent decision by the Sabah State Government to close palm oil operations in three additional districts in the State.

This would lead to a shutdown of palm oil operations in a total of six Sabah districts, which account for 75% of the State’s crude palm oil (CPO) production.

Sime Darby Plantation Bhd had also earlier voiced its concerns.

In a statement today, FGV said it understands the State Government’s concerns on the increasing cases of COVID-19 in Sabah, but is also concerned about the social impact of the closure.

It said in line with the Prime Minister’s recent announcement which recognised the palm oil industry as an essential service, all operations related to the industry need to be continued to avoid worse financial and social implications.

“FGV also takes into account the welfare of 871 families in Felda Sahabat and 776 families in FELDA Umas, whose income will be affected as a result of the closure.

“FGV hopes that the Sabah State Government will deliberate MPOA’s views and reconsider the decision. FGV has committed to adhering to all standard operating procedures and guidelines in all FGV estates and mills since the movement control order (MCO) was implemented on March 18 and continues to work closely with all stakeholders to ensure that the risks to the safety and health of all employees are minimised,” it said.

Yesterday in a joint statement, MPOA and MEOA said it had appealed to the Sabah State Government to reconsider its decision and allow palm oil members to resume operations during the MCO only for essential and critical segments, for example, harvesting, crop evacuation as well as milling.

Source : The Edge Markets