MARKET DEVELOPMENT
Najib Announces RM510Mil Allocation For Palm Oil Smallholders
Najib Announces RM510Mil Allocation For Palm Oil Smallholders
25/05/2017 (The Star) - Prime Minister Datuk Seri Najib Tun Razak has announced an allocation of RM510mil for oil palm replanting and new crop planting for smallholders as part of celebrations commemorating 100 years of commercial oil palm planting in Malaysia.
"I hope that this will be able to alleviate the financial burden of smallholders when carrying out replanting and new crop planting for palm oil, and at the same time ensuring that the country's oil production is able to meet market demands," said Najib to a crowd of 5,000 at Sime Darby's Tennamaram Estate here Tuesday.
Malaysia is the second largest producer of palm oil in the world after Indonesia.
Oil palm plantations currently occupy over five million hectares, while palm oil accounts for almost 6% of Malaysia's Gross Domestic Product (GDP).
According to the Malaysian Palm Oil Council (MPOC), our country currently accounts for 29% of world palm oil production and 37% of world exports.
Najib commended the Malaysian oil palm industry for mastering the downstream sector as well as research, development and commercialisation.
Since 2011, Najib said the Government had allocated more than RM500mil in grants to palm oil companies and companies that produce oil palm products.
Looking towards the future of the industry, Najib said the Government was taking steps towards sustainability by adopting the Malaysian Sustainable Palm Oil (MSPO) initiative, which will be made compulsory from Dec 31 2019.
MSPO is aimed at taking the industry to a higher level of sustainability and transparency throughout the entire supply chain by requiring all groups of producers to meet a broad range of standards.
Najib said the move is aimed to improve accessibility and competitiveness as well as giving an advantage to Malaysia in the global oil palm market.
"To ensure that the producers of palm oil, especially smallholders, are not burdened in implementing the MSPO scheme the government will provide support and give incentives to industry players implementing MSPO," said Najib.
He urged oil palm companies to produce sustainable palm products and focus on "zero waste" and environmentally-friendly practices.
"Use the waste materials of oil palm and the methane gas that is produced," said Najib.
He also urged the oil palm industry to move forward and improve its level of mechanisation and automation through the use of technology and innovation.
"Thus, through efforts and initiatives, I am confident that the industry will continue to excel, not only to TN50 or another 100 years, but for five more centuries," said Najib.
At the event, Najib also launched a special edition stamp and coffee table book.
Special recognition was also accorded to Henri Fauconnier, the pioneer of the palm oil industry in Malaysia.
Najib presented an award to Fauconnier's great grandson Jeremie Fontainne at the celebration.
In addition, Felda Taib Andak Kulai received an award for the first government palm oil land scheme and Tennamaram Estate for the first commercial plantation.
Also present at the celebration was Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong, Deputy Plantation Industries and Commodities Minister Datuk Datu Nasrun Datu Mansur, Urban Wellbeing, Housing and Local Government Minister Tan Sri Noh Omar, Sime Darby Berhad chairman Tan Sri Datuk Abdul Ghani Othman, Sime Darby Berhad president Tan Sri Datuk Seri Mohd Bakke Salleh and Malaysia Palm Oil Association chairman Datuk Franki Anthony Dass.
"I hope that this will be able to alleviate the financial burden of smallholders when carrying out replanting and new crop planting for palm oil, and at the same time ensuring that the country's oil production is able to meet market demands," said Najib to a crowd of 5,000 at Sime Darby's Tennamaram Estate here Tuesday.
Malaysia is the second largest producer of palm oil in the world after Indonesia.
Oil palm plantations currently occupy over five million hectares, while palm oil accounts for almost 6% of Malaysia's Gross Domestic Product (GDP).
According to the Malaysian Palm Oil Council (MPOC), our country currently accounts for 29% of world palm oil production and 37% of world exports.
Najib commended the Malaysian oil palm industry for mastering the downstream sector as well as research, development and commercialisation.
Since 2011, Najib said the Government had allocated more than RM500mil in grants to palm oil companies and companies that produce oil palm products.
Looking towards the future of the industry, Najib said the Government was taking steps towards sustainability by adopting the Malaysian Sustainable Palm Oil (MSPO) initiative, which will be made compulsory from Dec 31 2019.
MSPO is aimed at taking the industry to a higher level of sustainability and transparency throughout the entire supply chain by requiring all groups of producers to meet a broad range of standards.
Najib said the move is aimed to improve accessibility and competitiveness as well as giving an advantage to Malaysia in the global oil palm market.
"To ensure that the producers of palm oil, especially smallholders, are not burdened in implementing the MSPO scheme the government will provide support and give incentives to industry players implementing MSPO," said Najib.
He urged oil palm companies to produce sustainable palm products and focus on "zero waste" and environmentally-friendly practices.
"Use the waste materials of oil palm and the methane gas that is produced," said Najib.
He also urged the oil palm industry to move forward and improve its level of mechanisation and automation through the use of technology and innovation.
"Thus, through efforts and initiatives, I am confident that the industry will continue to excel, not only to TN50 or another 100 years, but for five more centuries," said Najib.
At the event, Najib also launched a special edition stamp and coffee table book.
Special recognition was also accorded to Henri Fauconnier, the pioneer of the palm oil industry in Malaysia.
Najib presented an award to Fauconnier's great grandson Jeremie Fontainne at the celebration.
In addition, Felda Taib Andak Kulai received an award for the first government palm oil land scheme and Tennamaram Estate for the first commercial plantation.
Also present at the celebration was Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong, Deputy Plantation Industries and Commodities Minister Datuk Datu Nasrun Datu Mansur, Urban Wellbeing, Housing and Local Government Minister Tan Sri Noh Omar, Sime Darby Berhad chairman Tan Sri Datuk Abdul Ghani Othman, Sime Darby Berhad president Tan Sri Datuk Seri Mohd Bakke Salleh and Malaysia Palm Oil Association chairman Datuk Franki Anthony Dass.