29/07/2011 (Bernama) - Malaysia as a whole, and Sabah in particular, are no longer destinations for cheap labour in the oil palm sector, said state Industrial Development Minister, Datuk Raymond Tan Shu Kiah.

He said this has become increasingly pronounced in the last few years with the exodus of many Indonesian plantation workers back to their home country.

"Although we have the raw materials necessary for a massive oil palm downstream sector, we are aware of the competition coming from rapidly expanding plantations in Kalimantan (Indonesia) and in Sarawak," he said at the opening of the Palmex Conference here Thursday.

Tan said many other countries, 10 degrees north and south of the equator, have either begun planting oil palm, or are thinking of starting an industry based on the commodity.

He said the state government will continue to package investment incentives to attract investors and continue to initiate and support conferences to sustain global interest.

He said the oil palm industry has for many years been a major contributor to Malaysia's gross domestic product.

"It will continue to be, as the oil palm sector, is targeted to grow exponentially in the 10th Malaysia Plan and the Economic Transformation Programme," he added.

He said more than 80 per cent of oil palm plantations in Sabah belong to companies outside the state, and this was turned into a political issue by those claiming, non-Sabahans were gaining more than locals.