25/10/2010 (Bernama) - The Economic Transformation Programme (ETP) roadmap will see the natural growth of Malaysia's palm oil industry to capture three business opportunities worth RM57.6 billion by 2020.

The focus areas will be the expansion of existing upstream activities development of existing upstream activities, development of existing downstream acyivities and development of national biodiesel activities, said the government.

Growth from the expansion of existing upstream activities will be driven by two major factors, namely expansion of Malaysian Plantations abroad and organic in yield levels.

The government said organic growth in yield levels will be the key to driven upstream developments.

Planting material will improve due to wider utilisation of quality clonal material, hybrid seeds, bi-clonal and semi-clonal seeds and better crop recovery through marginal improvement in collecting practices.

As A result plantation and organised smallholders will gradually increase their productivity.

"Due to the scarcity of arable land, Malaysian companies are expected to invest more aggressively in plantations abroad," said the government.

By 2020, Malaysian plantations will have an additional two million hectares in Indonesia, other parts od Southeast Asia and Western Africa which will translate into an additional Gross National Income (GNI) contribution of RM17.6 billion by 2020.

This will require a total private investment of RM17.6 billion over the next 10 years, it said.

On downstream activities, the government said, growth in the non-food segment will be driven by the expansion of basic oleochemicals.

"The food segment, though much smaller, will expamd due to rising consumer demand for package foods, it added.

To achieve this. it requires RM46.9 billion funding which will come entirely from private sector.

As for the development of national bio-diesel activities which will further bolster Malaysia's commitment to reduce greenhouse gas emissions in the country, the business opportunity will translate into an additional GNI of RM1.6 billion by 2020 and create an additional 2,100 jobs.