CAMERON Highlands vegetable farmers are resorting to partnerships with foreign workers in a move to cut costs and ensure their farms remain viable, associations said.

They said the “practice”, which has emerged over the years at night markets and other markets, has manifested itself in Cameron Highlands.

They said profit-sharing has helped the farmers deal with the spiralling labour cost.

Cameron Highlands Chinese Farmers Association deputy president Cheng Nan Hong said this is happening at farms where the owners are elderly and have difficulty hiring help to work the farms.

“Even if we can find workers, the salary is very high. It used to be RM1,500, but now, due to the worker shortage, it has gone up to RM2,000. Wages account for about 30% of costs,” he told The Malaysian Insight.

He also said in recent years, farmers had to pay higher charges after the status of most of their plots were changed from temporary land occupation permits to agricultural land lease.

“The average annual fee is now more than RM4,000,” he said.

Faced with this situation, owners have to find ways to cut costs, he said.

Cheng said the owners are either working the plots with the foreigners or leasing out part of their farms to the foreign workers.

He said a majority of the foreigners involved are Bangladeshis.

He said the farm owners are not worried about the authorities as the foreign workers have their own network to distribute their produce to the shops.

“They sell their produce to foreign workers who do business in the periphery of the old wholesale market in Selayang,” said Cheng.

“But some wholesalers also buy from the foreigners as they are willing to sell cheap. But there is an element of quality. The wholesalers are willing to take the risk.”

He said the practice of owners and foreigners working the farms jointly began before the Covid-19 pandemic.

“While it is good for the industry and consumers because there is more supply, it is definitely not good for the country because they (foreigners) don’t pay taxes,” he said.

Cheng attributes this development to the worker shortage.

He stressed that although the association is not in favour of this practice, it is ultimately up to the owners.

He said the government could help arrest this trend by speeding up approvals for foreign workers.

On December 21 last year, Prime Minister Anwar Ibrahim revealed after chairing a cabinet meeting that the issue of labour shortage was discussed.

“The Human Resources Ministry and Home Ministry have been directed to address this issue immediately, especially in the plantation, services and construction sectors,” he said.

“These three (sectors) need to be given attention as delays in approvals have stalled some production centres.”

Tanah Rata assemblyman Ho Chi Yang acknowledged the trend of farmers leasing their plots to foreigners.

He said soaring costs have pushed owners to seek ways to keep their farms going.

“Costs are rising. Rent for farmland in Camerons has gone up. There is also a shortage of foreign labour, the high cost of fertilisers and the fluctuation of vegetable prices… the farmers’ plight is becoming more severe,” he said.

“Some farmers have no choice but to rent out land to their foreign workers.”

Ho said the federal and state governments have to find ways to help alleviate the farmers’ plight.

Federation of Vegetable Farmers Associations of Malaysia president Lim Ser Kwee said the arrangement has its downside.

“Foreign workers being bosses will definitely affect the interests of local farmers,” he said.

“The prices of vegetables they produce are lower than ours. This causes stiff competition.”

However, Cameron Highlands Vegetable Growers Association secretary Chay Ee Mong, who is also the general secretary of Malaysian Vegetable Growers Association, said the leasing of land by foreign workers in Cameron Highlands existed, but it is not a serious problem.

“Agricultural land is regulated by the state government. The owners risk losing their plots if they are found leasing them to foreigners,” he said.

“Therefore, I believe fewer and fewer farmers will dare to do it.” – January 3, 2023.