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Media Statement Ministry Of Plantation Industries and Commodities 19 February 2016
Media Statement Ministry Of Plantation Industries and Commodities 19 February 2016
22/02/2016 (Bernama) - The Minister of Plantation Industries and Commodities, Datuk Amar Douglas Uggah Embas had a discussion with H.E Christophe Penot, Ambassador of France to Malaysia in Putrajaya today. The discussion was held to express Malaysia’s concerns on the adoption of Amendment 361 to the Law on Biodiversity by the French Senate on 21 January 2016. This amendment will be further considered by the Sustainable Development Committee of the National Assembly tentatively scheduled on 1 March 2016.
The amendments provide for a progressive increase of domestic tax on palm oil and palm kernel oil to 300 Euros/tonne in 2017 to 900 Euros/tonne by 2020.
The amendments were premised on the allegation that the palm oil industry contributes to deforestation and the disappearance of the eco systems, as well as health effects of palm oil consumption. Malaysia being a major producer and exporter globally of palm oil products would like to reiterate that the palm oil industry in Malaysia subscribes to sustainable practices, including good agricultural practices and palm oil is a nutritional oil.
The Malaysian palm oil industry subscribes to voluntary industry led certification under the Roundtable on Sustainable Palm Oil (RSPO).
Currently, 25.3% of Malaysia’s palm oil planted area is certified under RSPO. In addition, Malaysia has implemented the Malaysian Sustainable Palm Oil Certification Scheme (MSPO) beginning 2015 to promote the production of sustainable palm oil. MSPO is based on compliance to domestic laws and regulations, including the development and management of oil palm cultivation that subscribes to best environment and agricultural practices. To date, 111, 451 hectares have been certified under the MSPO scheme.
Malaysia currently has 54.6% of land area under forest cover. This is in line with our commitment at the Rio Summit 1992 to retain at least 50% of the land area under forest cover. Palm oil cultivation currently at 5.64 million hectares only occupies 17.1% of the land area. As such, the argument that this industry contributes to deforestation is unsubstantiated.
There is also ample scientific evidence that attest to the fact that palm oil is suitable for consumption and beneficial to human health. This has been confirmed by more than 150 publications by scientists both in Europe and other countries around the world.
The palm oil industry is an important component of the agriculture sector in Malaysia and has been instrumental in addressing rural poverty and employment opportunities. This industry is important to the livelihood of small farmers where, there are currently more than 600,000 smallholders in Malaysia with a total cultivation area of 2.19 million hectares, which is close to 40% of the total planted area. The palm oil industry contributed RM63.2 billion in 2015 in terms of export earnings and accounted for 53.98% and 8.1% of total commodity exports and total merchandise exports respectively.
The new tax structure on palm oil in France has negative repercussion on palm oil imports into France and the long term bilateral trade relation between Malaysia and France. In this context, Malaysia wish to recall the statement by the former French Prime Minister, H.E Jean-Marc Ayrault, during his visit to Malaysia in July 2013 on the importance of palm oil to Malaysia, and as part of a mutually respectful France-Malaysia relationship. H.E Ayrault committed that France would not introduce measures that discriminates against palm oil. This commitment was extremely important and was welcomed by Malaysia.
The Ministry of Plantation Industries and Commodities will continue to engage the relevant stakeholders in France. These include representation by the Malaysian Embassy in Paris to the relevant stakeholders in France on the concerns with regards to the amendments to the Law on biodiversity and reiterate the positive and evidence based of the palm oil industry.
In addition, Malaysia will also collaborate with Indonesia, the other major producer of palm oil to jointly represent the case highlighting the environmental and sustainable development of the oil palm industry, contribution to the economy and poverty eradication, as well as nutritional attributes of palm oil.
SOURCE : Ministry of Plantation Industries and Commodities
FOR MORE INFORMATION, PLEASE CONTACT:
Name : MOHD HAIZUL BIN HOD
Unit Komunikasi Korporat
Kementerian Perusahaan Perladangan dan Komoditi Malaysia
Tel : 03-88803324
Faks : 03-88878205
The amendments provide for a progressive increase of domestic tax on palm oil and palm kernel oil to 300 Euros/tonne in 2017 to 900 Euros/tonne by 2020.
The amendments were premised on the allegation that the palm oil industry contributes to deforestation and the disappearance of the eco systems, as well as health effects of palm oil consumption. Malaysia being a major producer and exporter globally of palm oil products would like to reiterate that the palm oil industry in Malaysia subscribes to sustainable practices, including good agricultural practices and palm oil is a nutritional oil.
The Malaysian palm oil industry subscribes to voluntary industry led certification under the Roundtable on Sustainable Palm Oil (RSPO).
Currently, 25.3% of Malaysia’s palm oil planted area is certified under RSPO. In addition, Malaysia has implemented the Malaysian Sustainable Palm Oil Certification Scheme (MSPO) beginning 2015 to promote the production of sustainable palm oil. MSPO is based on compliance to domestic laws and regulations, including the development and management of oil palm cultivation that subscribes to best environment and agricultural practices. To date, 111, 451 hectares have been certified under the MSPO scheme.
Malaysia currently has 54.6% of land area under forest cover. This is in line with our commitment at the Rio Summit 1992 to retain at least 50% of the land area under forest cover. Palm oil cultivation currently at 5.64 million hectares only occupies 17.1% of the land area. As such, the argument that this industry contributes to deforestation is unsubstantiated.
There is also ample scientific evidence that attest to the fact that palm oil is suitable for consumption and beneficial to human health. This has been confirmed by more than 150 publications by scientists both in Europe and other countries around the world.
The palm oil industry is an important component of the agriculture sector in Malaysia and has been instrumental in addressing rural poverty and employment opportunities. This industry is important to the livelihood of small farmers where, there are currently more than 600,000 smallholders in Malaysia with a total cultivation area of 2.19 million hectares, which is close to 40% of the total planted area. The palm oil industry contributed RM63.2 billion in 2015 in terms of export earnings and accounted for 53.98% and 8.1% of total commodity exports and total merchandise exports respectively.
The new tax structure on palm oil in France has negative repercussion on palm oil imports into France and the long term bilateral trade relation between Malaysia and France. In this context, Malaysia wish to recall the statement by the former French Prime Minister, H.E Jean-Marc Ayrault, during his visit to Malaysia in July 2013 on the importance of palm oil to Malaysia, and as part of a mutually respectful France-Malaysia relationship. H.E Ayrault committed that France would not introduce measures that discriminates against palm oil. This commitment was extremely important and was welcomed by Malaysia.
The Ministry of Plantation Industries and Commodities will continue to engage the relevant stakeholders in France. These include representation by the Malaysian Embassy in Paris to the relevant stakeholders in France on the concerns with regards to the amendments to the Law on biodiversity and reiterate the positive and evidence based of the palm oil industry.
In addition, Malaysia will also collaborate with Indonesia, the other major producer of palm oil to jointly represent the case highlighting the environmental and sustainable development of the oil palm industry, contribution to the economy and poverty eradication, as well as nutritional attributes of palm oil.
SOURCE : Ministry of Plantation Industries and Commodities
FOR MORE INFORMATION, PLEASE CONTACT:
Name : MOHD HAIZUL BIN HOD
Unit Komunikasi Korporat
Kementerian Perusahaan Perladangan dan Komoditi Malaysia
Tel : 03-88803324
Faks : 03-88878205