THE Malaysian Palm Oil Association (MPOA) has dispelled notions that the employment of prisoners in palm oil plantations will lead to institutionalised forced labour.

MPOA CEO Nageeb Wahab said the scheme could bring more benefit than harm, if done right.

“The allegation that this is institutionalised forced labour is the ill perceptions of some. I would believe there are more pros to this efforts when it is done in a transparent and voluntary manner,” Nageeb told The Malaysian Insight.

He was responding to allegations from labour rights advocates in a recent article in UK newspaper The Guardian that Malaysia’s scheme to employ prisoners on palm oil estates may constitute “institutionalised forced labour”.

The palm oil industry is already facing criticism for alleged abuse and exploitation of workers.

Malaysia is the world’s second largest palm oil producer, accounting for 25% of the world’s supply.

Nageeb said the scheme introduced in 2016 is the palm oil industry’s move to answer the government’s call to provide more jobs to locals and to reduce reliance on foreign labour.

“There is so much hype about palm oil estates employing prisoners jobs. The industry is answering the call by the government to recruit more locals,” he said.

The initiative involves offering prisoners with minor offences and who are to be released soon the opportunity to work and readjust to society, Nageeb said.

Prisoners can voluntarily opt for the work and the industry collaborates with the Prisons Department, he added.

The prisoners employed at plantations are also paid directly and receive the same wages as other workers, he said.

To date, only one of MPOA’s 122 members have participated in the scheme, which is still fairly new.

“I believe only Sime Darby Plantations Bhd and some government-linked companies (GLCs) like Felcra have started this scheme,” he said.

The Guardian article had quoted the director-general of Malaysian Palm Oil Board (MPOB) Ahmad Parveez Ghulam, who said the scheme was a “win-win” situation for prisoners and the industry.

The MPOB declined to comment when contacted by The Malaysian Insight.

Meanwhile, Sime Darby Plantation Bhd is expected to release a statement to address queries on the matter.

The scheme to employ prisoners and recovering addicts was introduced in 2016 but it has gained more scrutiny off late as the industry grapples with a labour crunch due to the Covid-19 pandemic.

About 85% of the manpower in local plantations comprises migrant workers from Indonesia and Bangladesh.

However, Malaysia, has frozen the recruitment of new foreign workers to favour locals retrenched due to Covid-19, and has also closed its borders to most except essential work, official and diplomatic travel.

As such, according to a Reuters report, the industry is now facing a shortage of 37,000 workers, which is estimated to be close to 10% of the total workforce.

The labour crunch could affect output during the peak production period of September to October, hence giving Indonesia, already the world’s largest producer of palm oil, an added advantage.

According to the MPOA’s estimates, the local industry could have lost up to 30% of its potential yield due to the labour shortage.

This has resulted in a lower crude palm oil output compared to last year’s 19.9 million tonnes. – September 23, 2020.