The country, second only to Indonesia in palm oil production, has become more competitive in recent months due to higher export levies imposed by its southern neighbour. The steep drop in production pushed palm oil prices to record highs and sparked concerns about food inflation. To alleviate the situation, Malaysia in September approved the recruitment of 32,000 foreign workers for palm oil plantations, prioritising those from Indonesia. Some companies are considering repaying such recruitment fees to workers, a manager of a palm oil refinery told Reuters. That could double recruitment costs for each worker to about RM10,000, according to estimates by the Malaysian Palm Oil Association (MPOA).

Source: The Edge Markets December 10, 2021 10:33 UTC