Labour shortage more serious than fall in CPO price

Khazanah Research Institute (KRI) study showed a 30 per cent reduction of labour from the current level would see production fall by half.

KUALA LUMPUR: Labour shortage is more detrimental to both estates and smallholders in Malaysia’s oil palm industry than a global price drop, according to a Khazanah Research Institute (KRI) study.

The institute said a 30 per cent reduction of labour from the current level would see production fall by half, and a further of 80 per cent would lead to a system collapse as production reached only 20 per cent from the business as usual (BAU) level.