Sabah revenue impacted by volatile CPO prices, says Hajiji

Sabah revenue impacted by volatile CPO prices, says Hajiji
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KOTA KINABALU (Dec 2): The current volatility of crude palm oil (CPO) prices on a weekly basis has impacted revenue collection for the Sabah state government, compared to the beginning of the year.

Sabah Chief Minister Datuk Seri Hajiji Noor said the CPO price is currently in the range of RM3,500-RM4,000 per tonne, causing the palm oil industry to experience difficult times, coupled with the increase in labour, fertiliser and operational costs.

“It is very important at this time for the board of directors and the management team of government-linked companies (GLC) involved in the palm oil industry to continue to monitor operational cost control and employee productivity more closely,” he said in a press statement after chairing the 137th board of directors meeting of Sabah Softwoods Bhd at Menara Kinabalu here on Friday (Dec 2).

Hajiji, who is also chairman of Sabah Softwoods, wants the company to find ways and means to solve the problem of labour shortages and logistical constraints which hinder the production of fresh fruit bunches (FFB) and CPO, as a result of not achieving its targets.

The chief minister, however, said the company has performed well in the first two quarters of this year.

He is also confident that Sabah Softwoods will record higher revenue and profit this year and pay more dividends to its shareholders, in addition to rewarding employees in terms of salary and bonus payments.