Challenging times for palm oil

The palm oil industry is facing challenging times due to rising labour, fertiliser and operational costs, said Chief Minister Datuk Seri Hajiji Noor.

This is compounded by Crude Palm Oil (CPO) prices which fluctuate from week to week and is beyond the control of industry players.

“Currently, with CPO prices in the range of RM3,500 per metric ton (Mt) to RM4,000/Mt, it will result in less revenue for Sabah compared to the beginning of 2022.

“Therefore, it is very important for the management of government-linked companies (GLCs) involved in oil palm to monitor cost control and employee productivity,” he said when chairing Sabah Softwoods Berhad’s 137th Board of Directors Meeting at his office in Menara Kinabalu, Kota Kinabalu, on Dec 2.

Nevertheless, Sabah Softwoods has shown good performance in the first two quarters of 2022, said Hajiji who is also Sabah Softwoods Berhad Chairman.

The State Finance Minister is also optimistic that Sabah Softwoods which managed to record higher revenue and profit this year can pay more dividends to shareholders in addition to giving more benefits to employees in terms of salary and bonus payments.

Hajiji also congratulated Sabah Softwoods on its 50th anniversary which will be celebrated next year.

Also present were Sabah Softwoods Chief Executive Officer Datuk Haji Mohd Daud Tampokong and Yayasan Sabah Director Datuk Haji Ghulamhaidar Khan Bahadar.

Tags: CPO, prices, palm oil, Fertiliser, labour