PUTRAJAYA, Aug 16 (Bernama) -- Minister of Plantation Industries and Commodities, YB Datuk Seri Mah Siew Keong convened a special dialogue session with captains from oil palm industry to seek their combined opinions on measures to further boost exports of Malaysian Palm Oil (MPO).

During the meeting, the captains of industry expressed unanimously their collective support towards proactive measures taken by Malaysian Government to increase Malaysian’s shares in global oil palm market, particularly by committing to export 100% certified sustainable palm oil by end of year 2019.

YB Datuk Seri Mah Siew Keong reiterated his aspirations for MPO to be recognized as a premium world class oil and urged the captains of industry to share the responsibility to ensure Malaysia will be given global acknowledgement as world leader in producing and supplying sustainable palm oil to the world.

To this end, the captains of industry pledged their support towards Government’s initiative to adopt mandatory mandate of MSPO and committed to reflect their support by significantly increasing their combined MSPO certified hectarage (big plantation companies) to double of its current hectarage by end of 2017.

In response, YB Datuk Seri Mah Siew Keong lauded the collective commitment made by the captains of industry and described it as imperative to demonstrate Malaysia's serious commitment to ensure sustainable palm oil supply chain by year 2020, adhering to the Amsterdam Declaration 2015.

As of June 2017, from a total of 3,520,833 hectares of estate plantation, only 237,509 hectares are MSPO certified. This constituted only around 4.1% of MSPO certified hectarage compared to 5,763,627 hectares of total oil palm plantation in Malaysia.

In addition, the captains of industry were briefed by Dr. Kalyana Sundram, CEO of Malaysian Palm Oil Council (MPOC) on Malaysia's current export performance and the emerging markets for MPO, particularly within neighboring countries in Asia Pacific region.

For example, in this regard, YB Datuk Seri Mah Siew Keong encouraged the captains of industry to explore opportunities to export to Asia Pacific region as the region is expected to increase its MPO imports by an extra 350,000 MT in 2017 leading up to extra 692,000 MT in 2020.

YB Datuk Seri Mah Siew Keong highlighted that MPO has a steady market within Asia Pacific region and commands an average 65% of region's market share despite the competitive price offered by other oil palm producing countries.

In response, the captains of industry expressed their interest to diversify its export markets and ensured that the proposed emerging markets will be taken into further deliberation amongst their respected decision makers.  

In 2016, ASEAN countries imported a total of RM8.3 billion of palm oil and palm oil products from Malaysia, while Philippines, Vietnam and Myanmar are the major importers, worth around RM2.3 billion, RM1.8 billion and RM932 million respectively. It accounts 57 percent of total palm oil and palm oil products exports to ASEAN region.

In conclusion, YB Datuk Seri Mah Siew Keong welcomed the inputs given by captains of industry on various matters, particularly on the way forward to achieve nationwide MSPO certification target by end 2019 and measures to further strengthen MPO's footing in global palm oil market.

Prior to the special dialogue held with the captains from oil palm industry, YB Datu Seri Mah Siew Kong hosted a courtesy call from Nasional Association of Smallholders Malaysia (NASH) led by its Chairman, Dato Aliasak Ambia last week in Putrajaya. 

During the meeting, NASH lauded the recent announcement made by the government to provide 100% incentive for smallholder to obtain MSPO certification and described the incentive as important to ensure that the smallholders won't be burned by the certification cost. 

NASH also once again declared its full support towards mandatory implementation mandate of MSPO and expressed its readiness to work closer with government to facilitate the smallholders to be MSPO certified. 

YB DATUK SERI MAH SIEW KEONG
MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES

SOURCE : Ministry of Plantation Industries and Commodities

FOR MORE INFORMATION, PLEASE CONTACT: 
Name : Siti Hajar Binti Zulkefle 
Unit Komunikasi Korporat
Kementerian Perusahaan Perladangan dan Komoditi
Tel : 03 - 88873381
Fax : 03 – 88878205

--BERNAMA