Sabah chief minister Shafie Apdal told reporters after a cabinet meeting on Wednesday that the state's first priority was to save lives, and that it will only look at challenges facing businesses, factories and plantations after that.

"I want the facts from the health ministry and police that the factories are safe to operate," he said.

Shafie said the fact-finding will take time, but added that officials will spend this week looking into appeals from palm companies and will prepare guidelines for those allowed to resume operations.

Sabah state, which produces about 25% of the country's palm oil, had shuttered some plantations and mills until April 14 after several palm estate workers tested positive for the virus.

The state government had received a raft of appeals from planter groups and companies, including Sime Darby Plantation and FGV Holdings, to re-open unaffected operations in the state.

Shafie said Felda Sahabat, a resettlement area with palm plantations operated by FGV, had recorded six positive coronavirus infections.

FGV did not immediately respond to requests for comment.

The Malaysian Palm Oil Association had warned that the industry risked losing 500,000 tonnes of crop valued at 430 million ringgit ($99 million) from a 14-day closure.

Shafie urged palm companies to remain patient until a decision is reached.

Malaysia, the world's second largest palm producer, has recorded 4,119 cases, the highest in Southeast Asia.

(The story corrects to clarify location of infection).

(Reporting by Mei Mei Chu; Editing by Jan Harvey and David Evans)