CIMB Investment Bank Bhd Research is expecting companies in the palm oil sector to be hit the worst by the government's plans to raise minimum wage and reduce the number of foreign workers in the country.

It's estimated that every RM100 per month increase in minimum wage could increase the palm oil industry's costs by RM304 million to RM514 million per annum (or RM15 to RM26 per tonne of CPO).

CIMB Investment Bank Bhd Research is expecting companies in the palm oil sector to be hit the worst by the government's plans to raise minimum wage and reduce the number of foreign workers in the country.