11/03/2009 (Bernama), Kuala Lumpur - The Ministry of Plantation Industries and Commodities has called on all its agencies to implement the projects under the second stimulus package according to schedule so that they will benefit the industries especially the smallholders.

Its minister Datuk Peter Chin Fah Kui said the government has allocated a sum of RM75.888 million under the stimulus package for development projects to be carried out by the agencies.

The agencies involved are the Malaysian Palm Oil Board (MPOB), Malaysian Rubber Board (MRB), Malaysian Timber Industry Board (MTIB), Malaysian Cocoa Board (MCB), Malaysian Pepper Board (MPB) and National Kenaf and Tobacco Board (NKTB).

"I am sure this second stimulus package does bring some cheer to the palm oil producers as the government has agreed to raise the threshold on the profit levy imposed on oil palm," Chin said.

He said this in his keynote address at the media and industry appreciation night 2008 and the launching of the Statistics on Commodities 2008 book, here tonight.

The book, which is the 22nd edition published by the ministry, provides useful information on statistical trends of Malaysian commodities and its related activities.

Chin said at present, a windfall profit levy on oil palm is imposed when the price of crude palm oil exceeds RM2,000 per tonne.

However, with the escalating cost of production, the threshold for windfall profit levy has been increased to RM2,500 per tonne for Peninsular Malaysia and to RM3,000 per tonne for Sabah and Sarawak.

Chin also called on commodity players to brace themselves to operate in an increasingly global competitive environment.

"It is during this difficult time that we need to persevere and become even more aggressive in export promotion as there will be opportunities even in times of crisis," he added.

According to Chin, exports of commodities and commodity-based products increased 26.7 percent to RM112.4 billion last year from RM88.7 billion in 2007, and contributed 16.9 percent of the total export earnings of the nation.

He said the plantation industries and commodities sector maintained its contribution of 4.6 percent to the gross domestic product (GDP) and provided employment to 1.4 million people.

"In 2008, palm oil contributed RM64.8 billion in export earnings. If not for the declining price of palm oil in international market during the third quarter of 2008, the industry will pose a much bigger income for the nation," Chin said.

Chin urged all plantations and commodities industry players to continue to work hard and professionally, not only maintain the present achievements but also to further improve performance to greater heights.

"The government will continue to provide the much needed support for the industry to face the challenges ahead, at home and abroad.

"Although the economic situation in 2009 will be difficult, I am confident the commodities sector, which has a track record of resilience, will weather the storm and emerge on a stronger foothold," Chin said.

At the event, the ministry contributed RM49,166 to the Wisma Putra Palestine Humanitarian Fund.