Drones, clones and chocolate help buoy United Malacca Bhd

Kuala Lumpur

ONE of this year's best-performing Malaysian palm oil plantation companies is looking to drones, clones and even other crops to overcome challenges from labour shortages and price volatility.

"We started mitigating that risk two years ago - we went all out for mechanisation," said Peter Benjamin, chief executive officer of United Malacca Bhd. "That has helped us cushion all these labour issues. It also helped us a lot as far as the recovery of the crop is concerned."

Palm oil companies in Malaysia, the world's second-biggest grower, have been grappling with a tepid rebound in production from the 2015-16 El Nino as well as an industry-wide shortage of skilled plantation workers. Futures rallied 15 per cent this half on lower-than-expected supplies. Output in most of Malaysia probably peaked in July while production growth is also slowing in Indonesia, according to Godrej International Ltd dire…