Navigating Challenges in the Palm Oil Industry: Sime Darby Plantation’s Strategic Response to the COVID-19 Pandemic


Authors : Sashya Siddhartha

Volume/Issue : Volume 9 - 2024, Issue 8 - August

Google Scholar : https://tinyurl.com/mw9p9638

Scribd : https://tinyurl.com/tcrcejzf

DOI : https://doi.org/10.38124/ijisrt/IJISRT24AUG1429

Abstract : This paper explores the impact of the COVID- 19 pandemic on Sime Darby Plantation Berhad (SDP), the world's largest producer of certified sustainable palm oil (CSPO). With a significant reliance on foreign labor, SDP faced substantial challenges due to border closures and movement restrictions imposed during the pandemic. The analysis focuses on the labor shortage, decreased production, and fluctuating global demand for palm oil. It also examines the measures SDP implemented to mitigate these challenges, including enhanced safety protocols, recruitment of local workers, and efforts to reduce dependency on manual labor through increased automation and mechanization. The evaluation of these strategies highlights their short-term effectiveness and potential long-term sustainability. The paper concludes by emphasizing the importance of technological innovation in overcoming labor shortages and ensuring SDP's continued growth and leadership in the palm oil industry.

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This paper explores the impact of the COVID- 19 pandemic on Sime Darby Plantation Berhad (SDP), the world's largest producer of certified sustainable palm oil (CSPO). With a significant reliance on foreign labor, SDP faced substantial challenges due to border closures and movement restrictions imposed during the pandemic. The analysis focuses on the labor shortage, decreased production, and fluctuating global demand for palm oil. It also examines the measures SDP implemented to mitigate these challenges, including enhanced safety protocols, recruitment of local workers, and efforts to reduce dependency on manual labor through increased automation and mechanization. The evaluation of these strategies highlights their short-term effectiveness and potential long-term sustainability. The paper concludes by emphasizing the importance of technological innovation in overcoming labor shortages and ensuring SDP's continued growth and leadership in the palm oil industry.

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