KUALA LUMPUR, 21 October 2022 – Sime Darby Plantation Berhad (SDP) has successfully mechanised several tasks across its Malaysian plantation operations.
As a result of a broadscale initiative launched just two years ago, SDP expects to eliminate the need for manual workers in all non-harvesting activities by the end of 2023.
“We expect to reduce the number of plantation workers by 55% by the end of 2023 and by the end of 2024, improve our land-to-man ratio to 1:17.5 or one worker for every 17.5 hectares (ha),” SDP group managing director, Mohamad Helmy Othman Basha said in a statement today.
The current industry average is one worker for every 8 ha. As dependence on manual labour decreases, SDP also expects to improve productivity.
Speaking at the annual Oils and Fats International Conference (OFIC) this week, organised by the Malaysian Oil Scientists’ and Technologists’ Association, Mohamad Helmy unveiled seven new initiatives, several of which are industry firsts that the company had developed internally or co-developed with start-ups and technology providers. Several of these initiatives have already been implemented across the Group’s Malaysian operations, while others are either in the prototype or concept stage.
“After more than 100 years of working the same way, heavily dependent on manual and menial labour, our industry can finally move forward,” Mohamad Helmy said.
Through advanced mechanisation, automation and digitalisation of its operations, SDP is making work in plantations more sophisticated and less laborious, which will also go a long way towards attracting a more skilled Malaysian workforce to the industry.
SDP aims to have a 100% local workforce for its Malaysian plantation operations by the end of 2027.
Mohamad Helmy showed footage of drones spraying seedlings in nurseries and unmanned ground vehicles undertaking tasks that have been described as “dirty, dangerous and difficult”. In SDP’s Malaysia operations, drones have replaced over 100 workers who, historically, had carried backpacks of chemicals to spray young seedlings in nurseries.
“During the pandemic, when foreign workers returned to their home countries, we were unable to replace them, which resulted in a sharp drop in productivity. We knew we had to take drastic action.
To find new solutions for the age-old problem, a special project team within SDP was formed in October 2020, comprising leaders from different disciplines within the company. The initiative was dubbed ‘Project Infinity’. Today, the future envisioned by the company two years ago is taking shape,” Mohamad Helmy said.
The palm oil industry is typically, highly labour-intensive. Prior to the pandemic, 80% to 85% of the plantation operations’ workforce were migrant workers, though, at SDP, foreign workers accounted for about 75% of the plantation workforce.
With more technology companies, institutions and organisations, both local and abroad, that are already or will be working in this space, Mohamad Helmy believes there will be more opportunities for Malaysians to become a part of this exciting transformation and contribute to the future of the Malaysian palm oil industry.
— Akses Malaysia
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