Malaysia palm giants warn shutting estates will worsen pandemic

KUALA LUMPUR (Bloomberg) -- Oil palm planters in Malaysia, the world’s second-largest grower, warned that closing estates in its top-producing state may exacerbate the spread of the coronavirus by creating a flood of economic migrants, while tightening food supplies.

The state government of Sabah, which has 1.54 million hectares of oil palm planted area -- more than 21 times the size of Singapore -- has ordered estates and mills in six districts to shut through April 14 after some workers tested positive.

The shutdown affects about 75% of the state’s palm production and about 100,000 workers, according to growers’ groups.