Johari Ghani: Palm oil drives RM100b in exports, but setback in rubber, cocoa sectors
21/08/2024 (Malay Mail), Kuala Lumpur - Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani underscored the critical role of his ministry in driving the national economy today, revealing that it contributes nearly RM160 billion in exports. He said that palm oil alone accounted for over RM100 billion of that total.
Johari also highlighted that the palm oil sector sustains more than 1.25 million jobs across the country, including 550,000 smallholders.
In terms of palm oil production, he said Malaysia manages 1.5 million hectares of land cultivated by smallholders, compared to 4.2 million hectares by the private sector.
Johari then said that as the world's second-largest palm oil exporter, Malaysia prioritises sustainability to avoid potential export bans related to environmental issues and to guarantee that Malaysian products can be freely exported across the globe without hindrances.
"To improve productivity, the ministry, through the Malaysian Palm Oil Board (MPOB), is working to increase yields by using high-quality seeds and implementing best practices in plantation management.
"We also focus on using good quality materials such as fertilisers and other inputs to prevent a decline in our industry, as seen in the rubber sector,” he added
He explained that historically, Malaysia was the world’s leading rubber producer, but due to poor management, the country now has to import rubber worth RM6 billion annually.
He said the same applies to commodities like cocoa, where Malaysia has shifted from being a major exporter to importing significant quantities.
"The expansion of these industries has led to the need for large imports, which impacts our currency.
"To address these issues, the ministry is collaborating with companies which import cocoa and has increased its production value significantly,” Johari said.
He said that by enhancing agricultural practices and efficiently managing natural resources, Malaysia could decrease imports, bolster the currency, create employment opportunities, and increase government revenue.