Labour force participation of rural youth in plantation sector of Northern Peninsular Malaysia
Malaysian agricultural industry is labour-intensive, especially in oil palm plantations. It is reported in 2013 that 69% of the total number of plantation worker in oil palm plantation are foreign and 31% are local. This proportion indicates the lack of interest of the local people to work in the...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2016
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| Online Access: | http://journalarticle.ukm.my/10781/1/jeko_50%282%29-7.pdf http://journalarticle.ukm.my/10781/ http://www.ukm.my/fep/jem/content/2016-2.html |
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| Institution: | Universiti Kebangsaan Malaysia |
| Language: | English |
| Summary: | Malaysian agricultural industry is labour-intensive, especially in oil palm plantations. It is reported in 2013 that 69%
of the total number of plantation worker in oil palm plantation are foreign and 31% are local. This proportion indicates
the lack of interest of the local people to work in the industry which resulted in vast employment of foreign worker. It
is believed that the cost of foreign worker recruitment has increased due to rising social and security problems caused
by the foreign workers which incurred a hidden cost to palm oil production. This paper aims to investigate the factors
of local young labour shortage in oil palm plantation sector in Perak, Perlis, and Kedah. Malaysia can reduce its
dependency on foreign worker by identifying the occupational interest of rural youth in oil palm plantation. A survey
questionnaire is used to collect data using random and purposive sampling method. A total number of 332 respondents
from rural young labours staying in FELDA and FELCRA areas were analysed using Probit model. Results show the
factors contributing to the probability to participate in oil palm plantation are age, wage, wage squared, gender,
level of education, and mother’s occupation. Attraction factors that can possibly increase local youth participation
in plantation sector includes improvement of working environment, job status, facility and benefit in plantation field. |
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