Ministry to fast-track digitalisation in palm oil milling sector
28/07/2026 (Borneo Post Online), Alor Gajah - The Ministry of Plantation and Commodities (KPK) will accelerate the adoption of digital technology, automation, artificial intelligence (AI) and low-carbon solutions in the palm oil milling sector, meant to improve productivity while reducing reliance on manual labour.
Minister Datuk Seri Dr Noraini Ahmad highlighted this at the 42nd Anniversary Dinner of the Southern Peninsula Palm Oil Millers Association (SPPOMA) in Ayer Keroh recently.
“The initiative will be implemented through closer collaboration with the Malaysian Palm Oil Board (MPOB), regulatory agencies and industry associations, including SPPOMA.
“The palm oil milling industry must not only improve operational efficiency, but also address growing demands for sustainability, environmental protection, workplace safety, traceability and compliance with international market requirements, including the European Union Deforestation Regulation (EUDR),” she said in her speech, which was delivered by KPK deputy secretary-general (plantation and commodities) Datuk Razali Mohamad.
Moreover, Noraini said her ministry called for the technical expertise and experience of industry players to be incorporated into policy formulation and improvements to the regulatory framework to ensure that every new measure introduced would be practical, balanced and able to be implemented effectively.
She also encouraged SPPOMA to channel industry issues and recommendations through the ministry’s annual ‘Industry Dialogue’ sessions, saying that the platform would enable concerns raised by the industry to be examined by the KPK and, where necessary, brought to other ministries, including the Finance Ministry, during the national Budget preparation process.
“We welcome the industry’s progress in methane capture, biogas power generation, BioCNG (compressed biomethane) production, oil recovery, process automation and the development of value added products from palm oil waste.
“These innovations have the potential to strengthen the circular economy, reduce carbon emissions and support the country’s energy security.
“The government will continue to ensure that the development of the palm oil milling sector progresses in line with the nation’s sustainability agenda without compromising operational realities or the industry’s competitiveness,” she added.