MARKET DEVELOPMENT
FELDA Malaysia To Invest in Palm Oil in Pakistan
FELDA Malaysia To Invest in Palm Oil in Pakistan
23/07/2013 (Daily Times) - A technical team of Federal Land Development Authority (FELDA) Malaysia here on Monday presented three investment models for plantation of palm oil trees in Pakistan for it’s commercial operations.
A technical team of FELDA led by group’s President and CEO Dr M Emir Mavani Abdullah called on Board of Investment (BoI) Chairman Mohammad Zubair.
The CEO apprised the BoI chairman that Pakistan’s palm oil import was around 70 percent of its total imports from Malaysia and FELDA is ready for cooperation regarding growing palm oil in the coastal areas of Balochistan and Sindh. He also agreed to send a technical evaluation team to Pakistan to see the situation on ground. He proposed following investment models:
Pakistan may seek the support of World Bank to engage FELDA as its consultant for the project. FELDA to purchase all the farm output. The venture to be risk-free. FELDA to lease 30,000 hectares of land for planting palm oil. Land availability will be the responsibility of government of Pakistan.
FELDA will lease 3,000 hectares from the government and also advise neighbouring farmers on the best farming techniques. The government will ensure farmers’ adherence to the terms and conditions agreed with FELDA. A minimum of 30,000 hectares will be required for the purpose.
After the briefing of the Malaysian delegation, the BoI chairman stated that Pakistan is increasingly dependent on imports to make up for the gap. Pakistan imports mostly palm oil, which accounts for more than 96 percent of its total imports. He said that we need Malaysian collaboration in the own-steaming activities of palm oil leading to the development of soap, pharmaceuticals and cosmetics may be sought. The need for the training of manpower for oil palm plantation, management and production technology may be emphasised, in out of the total imports of $1.86 billion of edible oils, import of palm was $1.3 billion (accounting 70 percent of total imports). The import of palm oil may be reduced by undertaking of investments in Pakistan in the form of joint ventures with palm oil players. He also welcomed the suggestion of the FELDA CEO that Pakistan can explore the possibility of planting palm oil in Pakistan, as many Malaysian companies re looking overseas to expand their businesses because of shortage of land in Malaysia.
He further said that Pakistan was the fourth largest importer of palm oil in 2012 trailing behind China, India and Netherlands. The FELDA is a Malaysian government agency initially founded to handle the resettlement of rural poor into newly developed areas and to organise smallholder farms growing cash crops. FELDA has launched a number of private corporate entities. The largest of these, Felda Global Ventures Holdings, is considered to be the world’s largest plantation operator, with 811,140 hectares (2,004,400 acres) of oil palms, mainly across Peninsular Malaysia, but also including other parts of Malaysia and the world. It is the third largest palm oil company in the world by planted acreage.
FELDA Group is a joint venture partner with Westbury Group, Pakistan and two Malaysian companies, like, KLK and ICI for the following projects located in the Port Qasim Area Karachi. MAPAK Qasim Bulkers (Pvt) Limited (MQB) deals with storage of edible oil and non-edible oil since 1995. MAPAK Edible Oils (Pvt) Limited (MEO) established a state-of-the-art edible oil refinery on 12 acres of land at Port Qasim in April, 2006. It is the largest edible oil refinery in the private sector.
A technical team of FELDA led by group’s President and CEO Dr M Emir Mavani Abdullah called on Board of Investment (BoI) Chairman Mohammad Zubair.
The CEO apprised the BoI chairman that Pakistan’s palm oil import was around 70 percent of its total imports from Malaysia and FELDA is ready for cooperation regarding growing palm oil in the coastal areas of Balochistan and Sindh. He also agreed to send a technical evaluation team to Pakistan to see the situation on ground. He proposed following investment models:
Pakistan may seek the support of World Bank to engage FELDA as its consultant for the project. FELDA to purchase all the farm output. The venture to be risk-free. FELDA to lease 30,000 hectares of land for planting palm oil. Land availability will be the responsibility of government of Pakistan.
FELDA will lease 3,000 hectares from the government and also advise neighbouring farmers on the best farming techniques. The government will ensure farmers’ adherence to the terms and conditions agreed with FELDA. A minimum of 30,000 hectares will be required for the purpose.
After the briefing of the Malaysian delegation, the BoI chairman stated that Pakistan is increasingly dependent on imports to make up for the gap. Pakistan imports mostly palm oil, which accounts for more than 96 percent of its total imports. He said that we need Malaysian collaboration in the own-steaming activities of palm oil leading to the development of soap, pharmaceuticals and cosmetics may be sought. The need for the training of manpower for oil palm plantation, management and production technology may be emphasised, in out of the total imports of $1.86 billion of edible oils, import of palm was $1.3 billion (accounting 70 percent of total imports). The import of palm oil may be reduced by undertaking of investments in Pakistan in the form of joint ventures with palm oil players. He also welcomed the suggestion of the FELDA CEO that Pakistan can explore the possibility of planting palm oil in Pakistan, as many Malaysian companies re looking overseas to expand their businesses because of shortage of land in Malaysia.
He further said that Pakistan was the fourth largest importer of palm oil in 2012 trailing behind China, India and Netherlands. The FELDA is a Malaysian government agency initially founded to handle the resettlement of rural poor into newly developed areas and to organise smallholder farms growing cash crops. FELDA has launched a number of private corporate entities. The largest of these, Felda Global Ventures Holdings, is considered to be the world’s largest plantation operator, with 811,140 hectares (2,004,400 acres) of oil palms, mainly across Peninsular Malaysia, but also including other parts of Malaysia and the world. It is the third largest palm oil company in the world by planted acreage.
FELDA Group is a joint venture partner with Westbury Group, Pakistan and two Malaysian companies, like, KLK and ICI for the following projects located in the Port Qasim Area Karachi. MAPAK Qasim Bulkers (Pvt) Limited (MQB) deals with storage of edible oil and non-edible oil since 1995. MAPAK Edible Oils (Pvt) Limited (MEO) established a state-of-the-art edible oil refinery on 12 acres of land at Port Qasim in April, 2006. It is the largest edible oil refinery in the private sector.