Sabah tightens movement control, palm impact unclear

Malaysia's Sabah state will tighten movement restrictions across four districts for 14 days starting at midnight on 28 September, aimed at curbing Covid-19 transmission after a surge in recent infections.

All business activities except for essential services must stop from 29 September-12 October. It was not immediately clear whether palm oil plantations were exempt from closure.

The move comes after Lahad Datu, Tawau, Kunak and Semporna administrations confirmed 1,195 cases of Covid-19 in total between 1-27 September, according to Malaysia's ministry of health.

The palm industry was granted permission to resume operations ahead of many other businesses during the first wave of blanket movement control orders in April.

Residents and visitors will also not be permitted to travel in or out of the restricted areas while the tighter controls are in place.

Malaysia's police force, army, civil defense force will assist local authorities to control the area throughout the duration of the restrictions.

Palm oil production in Sabah accounts for 25pc of Malaysia's total crude palm oil output, which stood at 19.9mn t in 2019.

Markets were awaiting further clarification on the palm industry's status and did not fluctuate much following the announcement. Third-month crude palm oil futures gained slightly after the news to close the day at 2,822 ringgit/t ($676/t), up from lows of 2,750 ringgit/t before the announcement at 3:15pm.

By Lauren Moffitt