Chan held a Breaking Fast Ceremony with agencies under the Ministry of Plantation and Commodities in Kota Kinabalu yesterday.
KOTA KINABALU : – Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin, has called on Sabah Deputy Chief Minister, Datuk Seri Jeffrey Kitingan, to formally raise concerns regarding the high costs of digital foreign worker registration in the Sabah State Cabinet.
Chan expressed his agreement with Kitingan’s recent statement, in which the latter voiced disappointment over the excessive fees imposed on the digital registration process for foreign workers in Sabah.
Chan supported Kitingan’s call for the registration process to be made free, encouraging undocumented foreign workers to voluntarily come forward for registration.
“The plantation sector in Sabah, particularly the palm oil industry, heavily relies on foreign labour.
Implementing free digital registration is crucial not only to record the presence of these workers but also to ensure Malaysia’s palm oil supply chain remains legitimate and sustainable in the international market,” said Chan during the Breaking Fast Ceremony with agencies under the Ministry of Plantation and Commodities in Kota Kinabalu yesterday.
Chan emphasised that while palm oil prices have remained favourable, production costs are also high.
The costly digital registration process could add financial strain, placing additional pressure on Sabah’s palm oil industry players.
“I strongly urge Datuk Seri Jeffrey Kitingan, who also heads the Special Cabinet Committee on Digital Registration of Foreign Nationals, to raise this matter in the State Cabinet meeting for further evaluation and review. This step is essential to ensure the continued resilience of Sabah’s palm oil industry,” added Chan.
In addition, Chan highlighted the recent decline in Sabah’s crude palm oil (CPO) production by 5.2% in 2024, which fell to 4.27 million tonnes compared to 4.51 million tonnes in 2023. He attributed this drop to lower fresh fruit bunch yields.
“We must take this matter seriously to ensure Sabah’s palm oil sector remains competitive and does not lag behind Sarawak or Peninsular Malaysia. The Federal Government has allocated RM100 million to support the continuation of the Smallholder Palm Oil Replanting Incentive Scheme 2.0 (TSPKS 2.0) this year. We must ensure that replanting rates in Sabah increase accordingly,” he said.
On another note, Chan highlighted the upcoming Malaysia International Cocoa Fair (MICF) 2025, scheduled from 25 to 27 May at the Sabah International Convention Centre (SICC).
He encouraged industry players to support the event, which aims to promote Malaysian cocoa internationally, strengthen global investor relations, and foster innovation in the national cocoa industry.
“Cocoa is a source of pride for Sabah, and I urge everyone to contribute to the success of MICF 2025,” he concluded.
