Palm oil exports from Malaysia to exceed RM100bil by 2020

KUALA LUMPUR: The export of palm oil products is expected to exceed RM100 billion in 2020 boosted by strong production, Plantation Industries and Commodities Minister, Tan Sri Bernard Dompok said on Tuesday.

To achieve the target, he said the government is looking to generate exports of more value added products, services and palm oil related technologies.

In 2008, the export of palm oil products stood at RM65.2 billion.

As for timber, he said export earnings from the industry is expected to reach RM53 billion by 2020 from RM22.5 billion in 2008.

Asked about the crude palm oil (CPO) price, Dompok said he is comfortable with the present RM2,400-RM2,600 per tonne level.

"At the RM2,400-RM2,600 level, the farmers and plantation owners should be happy. If they are happy, of cause I am happy too," he added.

Earlier, Dompok disclosed that the overall commodity export declined by 19 per cent to RM84.6 billion during January to November of 2009, compared to the same period of the previous year.

He attributed the downtrend to a weaker external demand due to the global economic crisis, which began in the second quarter of 2008.

As the commodities sector is expected to play a vital role in the nation's economic development, he said under the Tenth Malaysia Plan, the focus would be on funding activities towards the development of value added products and a sustainable supply of raw materials to support downstream activities.

"This will be implemented with input and cooperation from the private sector," he said, adding that, attention would also be given to smallholders.

He explained this is to ensure the income level is raised in line with the nation's objective of moving towards a high-income nation.

The government, he said would be also implementing measures to encourage development and training for the Malaysian labour force, in the commodities sector.

"The sector must not lose sight of the need to reduce the dependency on foreign labour. Currently, this sector has a total of 218,000 foreign labourers," he added.

Dompok said the ministry would continue to consult the industry, including developing long-term plans to reduce labour, especially foreign labour. - Bernama

Sustainable oil palm practices

09/01/2010 (NST Online), Sandakan - Growing concern about the need for the oil palm sector to do its bit for the environment and to produce edible oil in a sustainable way is the focus of an upcoming workshop here.

The Roundtable on Sustainable Palm Oil (RSPO) Awareness Workshop on Sustainable Palm Oil -- From Tree to Table -- will see speakers with vast knowledge in their respective fields, presenting six papers at the Sabah Hotel on Jan 14.

Malaysian Palm Oil Association (MPOA) chief executive Datuk Mamat Salleh will deliver a keynote address, and is also expected to present a paper that centres on the road ahead for the palm oil industry.

Representatives from Genting Plantations Berhad and Wilmar Group Berhad will speak on the importance of sustainability and what are some of the challenges, opportunities and benefits of a sustainably run plantation and mill.

Consumer demand, commitment of banks in giving loans for projects that are committed to RSPO principles and green trends are some of the other topics that will be discussed at the workshop.

The workshop is jointly organised by the MPOA Sabah branch and WWF-Malaysia's Kinabatangan -- Corridor of Life (K-CoL) project.

It is expected to draw 100 participants, mainly decision makers within plantations and palm oil mills.

K-CoL team leader Julia Majail said the workshop is expected to create awareness among participants on sustainability issues and expectations of consumers, both globally and in Malaysia.

"Consumers are becoming more concerned about where products come from, and in the case of palm oil, they want to be sure that minimal harm has been done to the environment. RSPO provides guidelines on making sure this vegetable oil is produced in a sustainable way.

"We are confident this workshop will provide planters and millers the knowledge they need to take the next step, especially among those who are operating in the Kinabatangan Basin," Majail said.