Sabah govt to look into formation of state palm oil board, says Deputy CM
The Star Online (21/12/2020) - KOTA KINABALU: The Sabah government is looking into the formation of a state palm oil board, considering the sector’s role in driving economic activities in the state.
Deputy Chief Minister-cum-Industrial Development Minister Datuk Joachim Gunsalam said such a body would give focus to the development of the industry including strengthening palm oil-related downstream activities.
He was responding to Chong Ket Kiun’s (DAP-Elopura) question during the state assembly sitting on Monday (Dec 21), on why Sabah has yet to have a palm oil board to oversee the development and promotion of the oil palm industry.
“At present, the oil palm plantation here is the size of 1.3 million hectare, covering almost 90% of all agricultural land in Sabah.
“This puts Sabah as the major contributor to the industry, holding 29.7% of all oil palm plantations in Malaysia, ” added Joachim.
He noted that not many investors carried out value-added activities in Lahad Datu Palm Oil Industrial Cluster (POIC) due to limitations such as lacking supply of raw materials like empty fruit bunch (EFB), palm kernel shell (PKS) and crude palm oil (CPO); as well as unsatisfactory infrastructure and insufficient local expertise.
“Technical and non-technical issues such as these needed to be identified and solved so we can attract investors into Lahad Datu POIC.
“Thus, the proposal of a Sabah Palm Oil Board is timely to ensure this industry can be monitored more efficiently, ” added Joachim.
He, however, noted that the state government had just been formed less than three months and would need time to study proposals for such a board.
At present, the Malaysian Palm Oil Board is the only body to plan and develop the industry in Sabah and Malaysia in general.
Joachim also revealed that there were six proposed investments in Lahad Datu POIC currently at the preliminary discussion stage.
Responding to an additional question by nominated assemblyman Datuk Yong Teck Lee on the possibility of forming a palm oil council to involve the private sector or the business community, Joachim said at this point he was not aware of such plans.
“But since Yong is also POIC Sabah Sdn Bhd chairman, maybe we can discuss further on this, ” added Joachim.