IDEAS home Printed from https://ideas.repec.org/a/ags/jamdev/407686.html

Labour Efficiency in the Malaysian Oil Palm Plantations: A Data Envelopment Analysis (DEA) Approach

Author

Listed:
  • Musa, Marlia
  • Abdullah, Amin Mahir
  • Ismail, Mohd Mansor
  • Saari, Mohd Yusof
  • Abdurofi, Ilmas

Abstract

Low levels of efficiency and productivity of the Malaysian oil palm plantations are associated with a persistent labour shortage. Hiring foreign labour is often seen as a feasible solution to support their intensifying oil palm production. However, their skills and experiences in the sector are crucial in sustaining the plantation efficiency and productivity. The study aims to analyse the level of labour efficiency and identify factors influencing labour efficiency in the Malaysian oil palm plantations. The cluster sampling was used to employ about 40 plantations from five plantation companies. Data were collected from the estate managers and analyzed using Data Envelopment Analysis (DEA). The findings revealed that the means of total technical efficiency (TECRS) and pure technical efficiency (TEVRS) were 0.7608 and 0.8573, respectively. A slack variable analysis reveals that the plantations had excessive labours from India (69%), Nepal (22.24%) and Bangladesh (14.39%). The study concluded that labour efficiency could be improved through hiring skilled labour and enhance on-field job training. Recruitment of labour by sourcing country could also help in selecting the best labour to recruit.

Suggested Citation

  • Musa, Marlia & Abdullah, Amin Mahir & Ismail, Mohd Mansor & Saari, Mohd Yusof & Abdurofi, Ilmas, 2021. "Labour Efficiency in the Malaysian Oil Palm Plantations: A Data Envelopment Analysis (DEA) Approach," Journal of Agribusiness Management and Development (JAMADev), Universitas Gadjah Mada, Department of Agricultural Socio-Economics, vol. 2(1).
    • Handle: RePEc:ags:jamdev:407686
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/407686/files/2260-Article%20Text-9668-3-10-20231205.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jamdev:407686. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://en.faperta.ugm.ac.id/department-of-social-agricultural-economics/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.