AI in palm oil processing to boost local talent and reduce foreign worker reliance


KUALA LUMPUR: Leveraging artificial intelligence (AI) in palm oil processing can reduce reliance on foreign workers and create opportunities for local talent, according to Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani.

He highlighted that these technologies require local expertise for monitoring, leading to high-income job opportunities.

"It will also be akin to high-income jobs," Johari said during his winding-up speech on the Royal Address in the Dewan Rakyat on Monday (Feb 20).

Johari noted that AI usage could result in significant savings for palm oil processing factories, referencing a visit last year to a factory in Kuala Kangsar, Perak, that implemented AI technology.

The factory, with a capacity of 45 metric tonnes per hour, managed to reduce processing costs, forecasting savings of up to RM1.6mil for the year.

AI implementation reduced the number of foreign workers from 66 to 44, saving approximately RM1.1mil in wages.

"When you add up the RM1.6mil and RM1.1mil, it makes up about RM2.7mil. The cost of installing the AI technology was about RM5mil," he said, explaining that the installation costs would be recouped in two years due to these savings.

Johari addressed concerns raised by Datuk Rosol Wahid (PN-Hulu Terengganu) regarding the high maintenance costs of AI, which he claimed forced a factory in Jerangau to close.

Johari explained that closures could result from factors such as insufficient fruit harvests or inefficiencies due to the age of premises.

"When factories are closed, there are several reasons - one is where there are not enough fruits to harvest. If there are many workers and less fruit, the entire cost will go up when compared to the produce," he said.

Johari encouraged MPs to write to him about related issues, and he would request the Malaysian Palm Oil Board to inspect the matter.

 

 

 

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