Sabah's income from palm oil drops in second half of 2022

Caption Hajiji (centre) receiving a memento from Mohd Daud after chairing board of directors' meeting.

KOTA KINABALU: Sabah is set to earn less from the palm oil sector for the second half of this year due to increasing labour costs as well as volatile crude palm oil (CPO) prices.

Chief Minister Datuk Seri Hajiji Noor said the industry is facing tough times because of the hike in cost of labour as well as cost of fertiliser and operations.

He added this situation was further worsened with the fluctuation in CPO prices from week to week, which was out of the control of industry players.

"As CPO prices range from RM3,500 per metric tonne to RM4,000 per metric tonne, it will result in less income for Sabah compared to the earlier part of 2022.

"Hence, it is vital that the board of directors and management teams of government-linked companies (GLC) involved in the palm oil industry carefully monitor matters related to operational costs and staff productivity," he said when chairing the 137th Sabah Softwoods Bhd board of directors meeting at his office in Menara Kinabalu here on Friday (Dec 2).

However, he said that Sabah Softwoods performed well in the first two quarters of 2022.

"I am proud after being informed that Sabah Softwoods' accounts from early this year to now have shown an increase in profits due to good CPO prices although the production of oil palm fresh fruit bunches did not meet the intended target.

Hajiji, who is also Sabah Finance Minister, said he was optimistic that Sabah Softwoods would be able to pay higher dividends to shareholders besides providing more benefits to its staff.

He also congratulated Sabah Softwoods on its 50th anniversary which will be celebrated next year, hoping the company will continue to contribute to the state.

Hajiji also launched its 50th anniversary celebration logo earlier. Also present were Sabah Softwoods chief executive officer Datuk Mohd Daud Tampokong and Yayasan Sabah director Datuk Ghulamhaidar Khan Bahadar.

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In Nation

Cracking show of Malaysian inclusivity
Celebration in Penang makes a grand comeback
Foreigner nabbed over contraband liquor worth RM270,000
Happy Thaipusam, says Religious Affairs Minister while reminding Muslims not to participate in the ceremonial rituals
Devotees throng Tg Tokong temple for first flame-watching ceremony since pandemic began
Hindu devotees, foreign tourists throng Penang to celebrate Thaipusam
Married couple killed, three children injured in crash on LPT2
Malaysia to host Asean-GCC summit, says Zambry
Search for missing hiker on Pulau Mawar postponed due to bad weather
Malaysia, Singapore to work together to tackle online scams

Others Also Read