23/03/2012 (NST) - The palm oil industry is a significant contributor to the Malaysian economy with over 4.9 million hectares of planted area.

The industry, supported by strategic policies as well as research and development activities from the Malaysian Palm Oil Board (MPOB), has experienced steady growth over the years with exciting developments for potential growth in the downstream sector.

Eight Entry Point Projects (EPPs) were identified under the palm oil National Key Economic Area (NKEA).

These were divided into two strategic thrusts. The first strategic thrust aims to ensure sustainability and improve the productivity of the upstream sector. Five EPPs are clustered under this:

EPP 1: Accelerating the replanting and new planting of oil palm trees;

EPP 2: Improving fresh fruit bunch yield;

EPP 3: Improving worker productivity;

EPP 4: Increasing the oil extraction rate; and,

EPP 5: Developing biogas facilities at palm oil mills.

The second strategic thrust aims to develop the downstream sector of the palm oil industry, greatly expanding production of high value oleo derivatives, commercialisation of second-generation bio-fuel for power generation as well as expediting the growth of food and health-based products in the downstream sectors. Three EPPs come under this thrust:

EPP 6: Focus on high value oleo derivatives;

EPP 7: Commercialising second generation bio-fuels; and,

EPP 8: Expediting growth in food and health-based downstream segments.

Under the palm oil NKEA, the target contribution to gross national income for 2020 is RM178 billion, with some 41,600 jobs created.