Sabah extends palm oil plantation shutdowns

[KUALA LUMPUR] The Malaysian state of Sabah, the country's biggest palm oil producer, has extended a shutdown of palm oil plantations until April 14 and widened the order to six districts, a state government document showed on Monday.

The state last week ordered palm oil plantations and factories in three districts to close until March 31 after seven estate workers tested positive for the coronavirus in an outbreak linked to a religious gathering in Kuala Lumpur.

The Sabah state government on Monday said palm plantations and factories in a total of six districts - Kalabakan, Semporna, Kunak, Tawau, Lahad Datu and Kinabatangan - must shut down until mid-April.

"Fresh fruit bunches that have been harvested at plantations can be delivered to factories, but factories and plantations are not allowed to operate until the end of the order on April 14," Sabah's chief minister, Shafie Apdal, told reporters.

Sabah, located in the east of the country, accounts for about 25 per cent of palm oil production in Malaysia.

The impact on production will be significant because the whole of Sabah, except for one remaining district, will not be able to harvest, Malaysia Palm Oil Association chief executive Nageeb Wahab told Reuters.

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The extended suspension comes as the world's second-biggest palm oil producer stepped up coronavirus containment efforts.

The country had reported 2,470 coronavirus cases as of Sunday - the highest in Southeast Asia.

REUTERS