13/12/2010 (Bernama) - The oil palm industry's contribution to the Malaysian economy has been forecast to grow to RM178 billion by 2020 under the Economic Transformation Programme and National Key Economic Area.

Presently, the sector's contribution was RM65.2 billion, Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said on Monday.

"The commitment by plantation operaotrs and smallholders to adopt good agricultural practice and ensure quality harvest will contribute to increased palm oil productivity and quality," he said in speech at the launch of Kunak Sustainable Oil Palm Planters Cooperative here.

In a speech read out by his political secretary, Datuk Philip Lasimbang, Dompok also said the Malaysia Malaysia Palm Oil Board (MPOB) had invented a motorised cutter called Cantas that could increase harvest productivity.

MPOB offered a RM1,000 discount for the purchase of Cantas to encourage smallholders to use it and for this purpose, the government had allocated RM5.3 million, he said.

In Budget 2011, he said, the government had announced a RM297 million allocation for oil palm smallholders to replace their aged trees.

"Oil palm smallholders are also encourage to implement integrated planting and breeding practices to generate additional income," he added.