Windfall profit levy review, oil palm replanting among agenda at MPOA’s inaugural conference
09/09/2023 (The Edge Malaysia), Kuala Lumpur - The Malaysian Palm Oil Association (MPOA) is set to hold its first ever National Palm Oil Conference 2023 next month, for stakeholders to discuss crucial issues and emerging trends in the palm oil sector.
The issues include the pressing need for a comprehensive review of the windfall profit levy's price threshold and levy rate, and oil palm replanting, it said in a statement on Saturday.
MPOA said the existing levy disproportionately burdens the palm oil industry, particularly in the face of escalated production costs at present.
The Royal Malaysian Customs Department website shows that the levy is charged at a rate of 3% on palm oil prices above RM3,000 a tonne in Peninsular Malaysia, and at a rate of 3% on palm oil prices above RM3,500 a tonne in Sabah and Sarawak.
The association said another vital agenda is the urgent appeal to intensify the acceleration efforts to replant ageing and unproductive oil palm trees in Malaysia.
“The staggering statistics reveal that there are currently over 664,000 hectares of oil palm trees in the country that are above the 25-year mark and are in dire need of replanting. This situation demands immediate attention and action.
“By 2027, the industry faces the daunting prospect of having two million hectares, constituting 35% of the total oil palm planted hectarage, classified as ‘old and old mature’. This impending scenario underscores the critical importance of implementing strategic measures to rejuvenate the ageing palm trees, safeguarding the productivity and competitiveness of the sector,” it added.
MPOA noted that the upcoming conference, themed “Palm Progress: Future-proofing competitiveness and sustainability”, is poised to shape the future trajectory of the plantation sector's priorities for the upcoming Budget 2024.
“This pivotal event will not only set the tone for industry aspirations but also serve as a guiding beacon for policymaking and fostering sustainable industry growth,” it said.
MPOA represents over 40% of the total planted oil palm area in Malaysia. Its members include Sime Darby Plantation Bhd, FGV Holdings Bhd, Kuala Lumpur Kepong Bhd and IOI Corp Bhd.
The conference will be held on Oct 2 and 3 at Sunway Resort Hotel, Petaling Jaya.