KUALA LUMPUR, Nov 18 (Bernama) -- YB Datuk Seri Mah Siew Keong, Minister of Plantation Industries and Commodities visited the IOI Esterchem Sdn Bhd’s new plant in Prai, Penang on Wednesday, 16 November 2016. IOI Esterchem is a subsidiary of IOI Oleochemicals, one of the leading oil palm industry players in the country.
 
During the brief discussion in the visit, YB Datuk Seri Mah Siew Keong envisioned that the future for palm oil industry is downstream sector. Therefore, YB Datuk Mah Siew Keong also encouraged interested parties to apply for the grant provided by the government to spur the growth of Malaysian palm oil downstream sector, especially the venture of high value added oleochemical products. Malaysia is the pioneer of palm based oleochemical industries in the world.

The objective of this visit is to discuss IOI Esterchem Sdn Bhd’s progress in the production of oleo derivatives, in particular the production of glycerol derivatives and bio-lubricant. IOI Esterchem Sdn Bhd is one of the recipients of the grant under the National Key Economic Area (NKEA) Palm Oil and Rubber, Entry Point Project 6 (EPP 6).
 
Under the Palm Oil NKEA, one of the area of focus is further development of the downstream sector. A total of RM 280 million worth of grants had been allocated under RMK-11 for EPP 6 and EPP 8 to encourage the domestic manufacturing of high-value palm oleo derivatives and palm oil based food and health products. The palm oil industry is also targeted to contribute to RM178 billion to Malaysia’s Gross National Income (GNI) and the creation of 41,600 jobs by 2020.
 
The oleochemicals industry started in Malaysia in early 1980s as a spin off to the oil palm industry. Today, the Malaysian oleochemicals industry has a capacity of 2.7million tonnes. The global oleochemicals market is driven by surging demand for renewable-based products and consumer preferences for sustainable solutions. Malaysian exports of oleochemicals are predominantly in the basic oleochemical sector.
 
Malaysia exports of oleochemical products in 2015 was 2.85 million tonnes valued at RM11.29 billion. The main products exported were fatty acids (33%), fatty alcohols (20%), methyl ester (17%), soap noodles (16%)and glycerine (13%).
 
With the help from the NKEA grant and Research and Development (R&D) findings from Malaysian Palm Oil Board(MPOB), we hope to see more downstream oleochemicals manufacturing plants built in Malaysia in the near future.

SOURCE : Ministry of Plantation Industries and Commodities (MPIC)

FOR MORE INFORMATION, PLEASE CONTACT: 
Name : KARTINA BINTI HAMZAH
Tel : 03-88878236  
Fax : 03-8887 8205 
Email : kartina@mpic.gov.my 
 
--BERNAMA