KUALA LUMPUR – Sime Darby Plantation Berhad, Malaysia, reported a larger fourth-quarter profit on Friday. The increase in palm oil prices fueled the report. Sime Darby Plantation Berhad said that production will pick up in second half.

From 149 million in a year prior, the profit for October and December rose to 468 millions ringgit ($112million), while revenue went up 53% to 5.55 trillion ringgit.

Malaysian plantations suffered severe labour shortages that were worsened due to pandemic-induced closures at the border. This reduced production and drove benchmark palm oil prices up to new records.

Due to supply shortages, crude palm oil prices will likely remain high through the second half of 2022, according to Sime Darby (the world’s biggest oil palm planter by landholdings), in an exchange filing.

However, it anticipates that production will increase in the second-half of the year in accordance with high crop season and the government’s efforts to attract migrant workers.

It stated that although the danger of COVID-19 remains, it anticipates that, with improved control measures and response, normalcy around the globe will pick up speed, along with an increase in demand.

According to the statement, the company anticipates a satisfactory financial year in 2022.

Sime Darby indicated that this year’s top priorities will include automation, mechanisation and digitalization of the operations, in an effort to lessen dependence on manual labour.

According to the firm’s products being barred by U.S. authorities due to accusations of forced labor, it said that they look forward to completing an independent labour operations assessment soon.

The company announced this week that it will set aside $20 million for migrant workers who have paid fees to be hired. This practice can often lead to debt bondage.

($1=4.1830 ringgit)