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Last Updated: 02 May 2024

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KOTA KINABALU: Sabah's palm oil industry needs to urgently expand its downstream sector to bridge the gap with counterparts in Peninsular Malaysia, says Datuk Chan Foong Hin.

The Deputy Plantation and Commodities Minister said that the ministry was committed to actively supporting Sabah's efforts to expand its downstream palm oil industry that will not only balance development but also increase revenue through value-added palm oil products.

In 2023, he said Sabah produced 4.5 million tonnes of crude palm oil, with 21.8% exported in crude form.

"This contrasts sharply with the peninsula's export rate of only 5.5% of crude palm oil, highlighting the substantial potential for Sabah's downstream palm oil industry growth," he said in a statement Tuesday (April 30).

Chan said a higher rate of crude palm oil exports results in less raw material available for downstream value-add or refining.

He said it was important for Sabah to diversify beyond upstream production and put in place a strong industry supply chain that maximises potential from upstream to downstream sectors to safeguard the sustainability of the palm oil industry.

Chan said this after a recent four-day tour of Sabah's east coast where he visited the Palm Oil Industrial Clusters (POIC) in Lahad Datu and Sandakan as well as met with two companies specialising in palm oil downstream activities.

The two companies were Mewah Datu Sdn Bhd, a subsidiary of Singapore's Mewah Group, and Gamalux Oils Sdn Bhd from Pakistan, both situated in POIC Lahad Datu.

He said the two POICs along Sabah's east coast played a pivotal role to drive the industrialisation efforts and become core centres for high-value palm oil and palm biomass downstream industries.

"Sabah's POICs offer comprehensive port and logistics infrastructure that can accelerate economic growth and industrial development.

"This makes it a highly appealing and promising investment destination.

"I am also excited to learn about Gamalux's plans for oleochemicals expansion in 2025, marking a significant milestone as the first unit in Malaysian Borneo. This event not only demonstrates Gamalux's ambitions but also its strong confidence in Lahad Datu as a growing hub for sustainable industrial development within the palm oil sector," said Chan.

https://www.thestar.com.my/news/nation/2024/04/30/sabah-must-push-for-expansion-of-downstream-palm-oil-sector-says-deputy-minister

Sumber : The Star

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Last Updated: 29 April 2024

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NABAWAN: Deputy Minister of Plantation Industries and Commodities Datuk Chan Foong Hin explained that obtaining the Malaysian Sustainable Palm Oil (MSPO) certification and Good Agricultural Practices (GAP) will not only enhance the quality of palm oil but also help small palm oil farmers increase their income.

He pointed out that as global awareness of sustainable development principles continues to rise, many major importing countries have set strict trade conditions for commodity and food-exporting nations to ensure that the products they import meet sustainable development standards.

“Therefore, ensuring that Malaysian palm oil meets sustainable standards is of utmost importance. This will not only guarantee and expand international markets but also solidify Malaysia’s reputation for high-quality palm oil.,”he said at the Strengthening Program for Sustainable Palm Oil Certification here recently.

He said : “In order to ensure that small farmers can keep up with international standards and meet global market demands, the Ministry of Plantation Industries and Commodities, through the Malaysian Palm Oil Board, actively assists small farmers in joining the Sustainable Palm Oil Cluster (SPOC) and obtaining the MSPO certification.”

https://www.dailyexpress.com.my/news/233102/malaysian-sustainable-palm-oil-good-agricultural-practices-to-boost-palm-oil-exports/

Sumber : Daily Express

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Last Updated: 29 April 2024

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PETALING JAYA: Plantation and commodities minister Johari Ghani has called on the European Union (EU) to end its “arbitrary and unjustifiable discrimination” against palm oil.

“After all, palm oil is the most productive oilseed crop of all,” he said in a comment published in the EU’s The Parliament Magazine yesterday.

Johari said palm oil currently yields an average of 3.31 metric tonnes per hectare (MT/ha), significantly higher than soybean (O.43 MT/ha), rapeseed (0.78 MT/ha) and sunflower (0.76 MT/ha).

“This means it uses less land, less fertliser and fewer other inputs,” he said, adding that Malaysia’s palm oil is capable of competing strongly in a fair market by offering lower prices and assuring global consumers a high quality.

The minister also called on the EU to act fairly in the enforcement of its strict environmental and sustainability laws and targets.

Acknowledging the need to support global efforts to protect the environment, Johari reaffirmed Malaysia’s commitment to attaining its Net Zero targets and all associated environmental goals.

“We will maintain a minimum 50% of our land as forest area (the global average is 31%); new mandatory certification laws have been introduced such as the Malaysian Sustainable Palm Oil (MSPO) standard; and a serious commitment is in place for an energy transition plan to reach Net Zero emissions by 2050,” he wrote.

However, Johari said Malaysia’s success in attaining those targets are also dependent on the actions of its trading partners.

The EU must reciprocate by showing fairness and lending the appropriate support during a “difficult transition period” given the country’s status as a developing nation, he said.

Johari said Malaysians have taken big strides towards better protection of the environment, but are also concerned for the security and the prosperity of their families and communities.

“For many people, those (environmental) advances are relatively new, and relatively fragile,” he observed.

For that reason, Johari said the country must be allowed to meet its economic targets so that all Malaysians can be assured of their social and financial wellbeing.

The minister said the EU has a huge role to play in this regard.

Although the MSPO ensures that Malaysia is well-positioned to fulfil EU environmental traceability requirements, Johari said regard must also be had for the 450,000 small farmers engaged in oil palm cultivation.

“They do not have the technological sophistication demanded by EU rules, and need more time and flexibility.

“If the EU wishes to bring developing countries with them on the Net Zero journey, it should not deny small farmers the ability to put food on the table for their families and communities,” he said.

Johari also called on the EU to accord due respect and recognition for the progress Malaysia has achieved to date.

“The EU could support Malaysia by recognising the value that MSPO brings, as well as the value that Malaysia provides to the world by protecting 50% of land as a permanent forest area,” he wrote.

The minister said Malaysia’s commitment to protecting tropical ecosystems, biodiversity and CO2 sequestration are “efforts worthy of support and recognition”.

https://www.freemalaysiatoday.com/category/nation/2024/04/26/end-unjustifiable-discrimination-against-malaysias-palm-oil-johari-tells-eu/

Sumber : Free Malaysia Today

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Last Updated: 29 April 2024

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THE Malaysian government is serious in resolving the issues surrounding the palm oil industry in the country, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.

The issues, particularly environmental and social issues, could affect the RM102 billion export potential when the country produces between 18.5 tonnes and 18.6 tonnes of crude palm oil.

This would go back to both the federal and state governments which are benefitting from the industry in terms of tax collection, almost one million people who are employed by the industry and 450,000 smallholders throughout the country.

“You know we are facing a big issue now in the world. You never see it last time but in the past 15 years people are talking about environment everywhere you go.

“If we can’t address the issue of environment we will be affected. That is why the government is to audit (under the Malaysian Sustainable Palm Oil (MSPO) certification scheme),” he said when opening Sarawak Oil Palms’ (SOP) Refinery and Fractionation Plant 2 at the Kidurong Industrial Estate Area Phase 2 here today.

Johari said Malaysia should not be penalised if the country had been found to be not in compliance with the Roundtable on Sustainable Palm Oil’s (RSPO) principles and criteria.

“I have always stressed to the European Union’s representatives whenever I have the opportunity to talk to them that if they are upset with issues in Malaysia, they should work with us closely on how to make a country like us a benchmark to the world on edible oil.

“Because for every hectare of land that we use, we can produce 3.3 million tonnes of edible oil compared to soy oil, rapeseed oil or sunflower oil that can only produce less than one tonne per hectare of edible oil,” he said.

He added that Malaysia is willing to sit down with the representatives and discuss on how to improve and become an example for the world in edible oil production.

He said palm oil production is an important industry in Malaysia which could boost the country’s economy through its upstream and downstream activities. — BERNAMA / pic AFP

https://themalaysianreserve.com/2024/04/27/govt-is-serious-in-resolving-palm-oil-industry-issues-johari/

Sumber : The Malaysian Reserve