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MEDIA RELEASE
MALAYSIA SUSTAINABLE AGRICOMMODITY WEEK
(FOOD AGRICOMMODITIES) AT DUBAI 2020 EXPO

1. Ministry of Plantation Industries and Commodities (MPIC), the Platinum Premier Partner for Malaysia Pavillion in Dubai 2020 Expo, hosts the Malaysia Sustainable Agricommodity Week (Food Agricommodities) from 7th to 12th February 2022 at the World Expo 2020, Dubai. This week, the focus is on Malaysia's essential food-based agricultural commodities such as palm oil, cocoa, and pepper.

2. Apart form concentrating on the end product of the Agricommodity sector, the sustainability initiatives and management in the entire food-base processing of the product, especially for the palm oil and pepper industry, are also highlighted. These initiatives include the Malaysia Sustainable Palm Oil (MSPO) Certification Scheme, regulatory guidelines, good agricultural practices, etc. The development of cutting-edge technology by the industry’s upstream, midstream, and downstream sectors is also displayed. The Malaysian Pepper Board (MPB) highlights value-added pepper products produced by SMEs and premium pepper such as Creamy White Pepper (CWP) with halal certified.

3. The Deputy Minister Datuk Willie Anak Mongin, representing MPIC witnessed the signing of a Memorandum of Understandings (MOU) between Malaysian Palm Oil Council (MPOC) and Lulu Hypermarket to market Malaysian palm oil-based products in the United Arab Emirates (UAE). Another significant MoU signed it is between the Malaysian Cocoa Board (MCB) and Agrocloud Sdn. Bhd. on a strategic partnership in developing innovative technology for cocoa farming. The collaboration will focus on enhancing the productivity of Malaysian coca planting operating under the Internet of Things (IoT) and any farming methodologies regarded as modern farming methodologies, including mechanization, precision farming, and automated farming.

4. Despite the uncertain economic climate worldwide, Malaysia's Agricommodity trade continues to perform well. In 2021 the Agricommodity sector contributed total export revenue of RM209.5 billion to the Malaysian economy. This value has exceeded Malaysia's total export revenue for 2020 of RM152 billion.

Ministry of Plantation Industries and Commodities
10 February 2022

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PRESS RELEASE

MALAYSIA INITIATES LEGAL ACTION AGAINST THE EUROPEAN
UNION OVER THE ANTI-PALM OIL CAMPAIGN

1. In line with the decision made by Cabinet Meeting held on 1st July 2020, the Ministry of Plantation Industries and Commodities (MPIC) with the cooperation of the Attorney General's Chambers and the Ministry of International Trade and Industries on 15 January 2021, has initiated a legal action against the European Union (EU) and its member states France and Lithuania following their anti-palm oil campaign. Malaysia has filed a request for consultations under the World Trade Organisation's (WTO) Dispute Settlement Mechanism (DSM).

2. This legal action is the result from measures taken by the EU and its member states in relation to the implementation of the Delegated Regulation of the EU Renewable Energy Directive II (EU RED II) which was impacting Malaysia’s palm oil industry. Malaysia has taken various steps which included Economic and Technical Missions to Europe apart from giving feedback on the implementation of EU RED II. However, the EU has taken the decision to implement the EU RED II without considering Malaysia’s views and commitment for sustainable oil palm measures.

3. The implementation of EU RED II has classified palm oil as a product that brings about high rate of indirect Land Use Change (ILUC). As a result, the usage of palm oil as feedstock for biofuel in the EU is not accounted for in the renewable energy target, thus creating an unreasonable trade barrier against Malaysia’s palm oil industry. The action taken by the EU is against the very principle of free trade practice outlined by the WTO.

4. Malaysia’s legal action demonstrates the government's seriousness in safeguarding the country's palm oil industry against the policy implemented by the EU. Malaysia hopes that the WTO, through its Dispute Settlement Body,  would study and consider Malaysia's arguments and explanation in a fair and equitable manner in accordance with the WTO's legal principles. Malaysia will give its full commitment and cooperation in this process especially in the consultative session and ensuing discussions with WTO Panel to be
established in the near future.

5. At the same time, Malaysia will remain as the third party observer for the legal action filed by Indonesia (Case Number DS 593: European Union – Certain measures concerning palm oil and oil palm crop-based biofuels) through the DSM in the WTO. Malaysia’s involvement is crucial as a sign of support and solidarity towards oil palm producing countries.

6. The Malaysian Government through MPIC will continue to give highest commitment in safeguarding the importance of its palm oil industry which has contributed much to the national socio-economic development.

YB DATO’ DR MOHD KHAIRUDDIN AMAN RAZALI

MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES

15 JANUARY 2021

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PRESS STATEMENT

3rd April 2020
APPEAL TO LIFT MCO IN PLANTATION SECTOR AS SUPPLEMENTARY TO
THE PALM OIL REFINING SECTOR

We refer to the recent shutdown of six oil palm plantation areas in Sabah by the State Government in its effort to contain the spread of Covid-19 virus among its workers there. Whilst we appreciate and commend the effort undertaken by the authorities in combating this disease, we are at the same time concerned about its impact on the palm oil industry in
particular and on the nation's economy in general.

By restricting plantation workers from harvesting the oil palm fruits which otherwise would be left unattended and eventually disposed off due to deterioration in quality will have dire consequences in the supply chain. Needless to say, when Fresh Fruit Bunches (FFB) cannot be harvested and transported to the mills for processing into Crude Palm Oil (CPO), the refineries will be choked with no supply for refining into cooking oil and other bakery/confectionery fats which are essential food products highly sought after by the consuming public and in short supply particularly during this period of need.

Whilst appreciating the need for social distancing to break the virus chain, it is also necessary to recognise the behaviour pattern of the plantation workers. Without any work to do, thousands of these workers are unlikely to sit at home but congregate in groups, thus defeating the purpose of the lockdown. It will be a herculean task to police and monitor the
movement of such large numbers of workers. The objective would probably be better served by keeping them gainfully occupied at work, where their movements can be much better coordinated and monitored under hygienic conditions.

As we are all aware, Crude Palm Oil is the lifeline of the refining industry. Without which, there is no cooking oil available let alone any of the consumer necessities mentioned above.

We, the Palm Oil Refiners Association of Malaysia (PORAM), therefore are in full support of the appeal and the move made by the Malaysian Palm Oil Association (MPOA), the Malaysian Estate Owners Association (MEOA) and other entities including individual companies such as FGV, Sime Darby and Wilmar to allow the plantation sector to continue to function albeit under certain conditions and precautionary safety measures. The varied reasons given by them are self-explanatory and unnecessary for us to repeat here.

Like any business entity, the palm oil refining industry has to remain viable, productive and more importantly to be able to put its nose above water as a matter of survival especially in difficult times like this. Without a constant supply of CPO, the refineries have to shut leading to loss of revenue, layoffs and a host of other problems not mentioning a cut-off in the supply of cooking oil in the domestic market.

Similarly, palm oil mills particularly the smaller ones with no plantation back-up and support to sustain their business during the MCO period are in the same predicament. Without a constant supply of FFBs, they are equally vulnerable.

In so far as external trade is concerned, many refineries had earlier sold and entered into forward contracts with their buyers overseas and these have to be honoured and fulfilled lest they be defaulted. As a consequence, the national economy will suffer through a loss in foreign exchange. In 2019, the export revenue earned by the palm oil industry amounted to RM 67b and due to the current crisis which has triggered a softer market sentiment with lower prices, the revenue for 2020 is expected to be reduced.

We also have to take into consideration the plight of those in the ancillary services such as trading companies which do not have manufacturing facilities but they play a vital role in connecting the refinery to the overseas end buyer. They too have orders to fulfil, i.e. to get their supplies from the refinery for onward shipment to their destination buyer. Other key services include inland transportation/haulage, freight forwarding, bulk installations, cargo surveying/inspection, analytical laboratories and so on.

Once again, we appeal and call on the Sabah Government to allow the palm oil industry and its supply chain to work in unison so as not to disrupt it for the benefit of the consumer and the economy as a whole.

Thank you.

Jamil Haron
Chairman, PORAM
PERSATUAN PENAPIS MINYAK SAWIT MALAYSIA

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MEDIA STATEMENT

INTERNATIONAL RUBBER INDUSTRY CONVENTION AND EXPO IN MALAYSIA TO RENOWED MALAYSIAN RUBBER MADE PRODUCTS

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1. Minister of Plantation Industries and Commodities Malaysia, YB Datuk Hajah Zuraida Kamaruddin launched the International Rubber Industry Convention and Expo 2022 (IRICE 2022) today at One World Hotel, Petaling Jaya

. 2. IRICE 2022 is held in conjunction with the 10th International Rubber Glove Conference and Exhibition 2022 (IRGCE 2022) and RubberCon2022. All three events, IRICE 2022, IRGCE 2022 and RubberCon2022, will be happening on 6 to 8 September at Kuala Lumpur Convention Centre.

3. Datuk Hajah Zuraida said during her officiating speech, “government responsibilities include creating an enabling environment that will allow the Malaysian rubber industry to realise its full potential, achieve global excellence, maximize its contribution to the domestic economy, and fulfil its obligations to various sections of society.” “Our primary aim is to ensure that the Malaysian rubber made products are renowned across the world.” She added.

4. IRICE 2022, organized by Malaysian Rubber Products Manufacturers Association (MRPMA) and co-hosted by Malaysian Rubber Council (MRC), aims to define the opportunities and address the challenges faced by Malaysia rubber industry players, which include precured treads, engineered rubber products in construction, railway, mining and marine, latex foam and mattresses, rubber medical devices, rubber automotive components, and green rubber. It also aims to promote the dry and technical rubber exhibition in Malaysia, that covers six categories; art painting, handicraft & souvenirs, sports, recreational and general consumer goods, building, construction and engineering, electrical & electronics, automotive, masterbatch, rubber chemicals, machinery and equipment. IRICE 2022 is a platform for them to connect and network with each other, to boost revenue as well as facilitate knowledge sharing amongst the industry.

5. “IRICE has been an effective avenue to bridge the smallholders and manufacturers of the rubber industry, especially in assisting in policy creation and bringing the industry players together and thus be a platform for effective networking,” said Dr Daroyah Alwi, Chairman of MRC during her opening speech.

6. IRICE was first organized in 2017 by MRPMA, with an astounding success in attracting hundreds of participants and speakers. This biennial event is dedicated to promoting growth of the rubber industry, by discussing on related policies and promoting the upstream sector of the rubber industry. IRICE also benefits the downstream sector in helping to identify new market opportunities. "Our Vision is to make IRICE the leading exhibition for the rubber industry in ASEAN." said Mr Yeaw Kok Kwey, President of MRPMA.

7. Also present during the event were Encik Hizwan Ahmad, Chief Executive Officer of MRC, Mr Loh Yoon Han, Organising Chair of IRICE and management team of both MRC and MRPMA

. 8. As part of MRC’s initiatives in promoting Malaysian rubber products, the exhibition will bridge the trade promotion activities, business cooperation, technologies exchange for domestic and key players from within the rubber industry. To date, more than 80 companies have shown interest in participating and MRPMA is encouraging more participation from other rubber industry stakeholders to take part in the IRICE 2022. To participate, please visit www.irice.com.my.

MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

14 FEBRUARY 2022