04/07/2011 (Bernama) - The Federation of Malaysian Manufacturers (FMM) has called on small and medium enterprises (SMEs) to step up their role and grab opportunities to manufacture palm oil-based value-added products.

The area had largely remained untapped, said FMM Small and Medium Industries Committee Chairman Tan Sri Soong Siew Hoong in a statement today.

He said it was high time for entrepreneurs to start manufacturing enterprises based on palm oil and palm biomass by-products as it would create new niche businesses as well as employment opportunities.

"While some progress has been made, vast opportunities remain untapped and a whole new spectrum of opportunities in pharmaceuticals, supplements, biofuel, personal healthcare products and wood-based industries remain to be fully exploited," he said.

In 2009, he said, palm oil contributed US$17.6 billion to Malaysia's economy, producing 17.7 million tonnes of crude palm oil (CPO).

Of the total, 15 million tonnes were exported while only 2.7 million tonnes were used locally to make cooking oil and palm oil-based products such as for the pharmaceutical, food and cosmetic industries.

"There are still vast opportunities for palm oil-based value-added products to be manufactured locally," he said, adding that the FMM would vigorously encourage and assist interested parties to invest in this sector and reap rich dividends.