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Palm oil exports up by 37pct in first 4 months of 2017

KUALA LUMPUR: Malaysia’s palm oil exports rose 37 per cent to RM24.73 billion in the first four months this year compared to RM18.05 billion, in the same period last year.

Malaysia’s Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong said the 37 per cent rise in revenue was due to the higher average pricing.

“This is a very good sign. We are on track to surpassing the RM70 billion target by the end of this year,” he said.

Mah was speaking to reporters today after receiving a courtesy call from Jeremy Fontaine, the great-grandson of Frenchman Henri Fauconnier.

Henri was the first planter in Malaysia who commercialised oil palm cultivation at Tennamaram Estate in Kuala Selangor, a hundred years ago. Today, this estate belongs to Sime Darby Bhd.

When asked on trade barriers palm oil exporters face, the minister noted the single certification threat as proposed by the European Parliament is a signal that the Malaysian Sustainable Palm Oil (MSPO) certification needs to be recognised universally.

“We are of the view that if Europe wants proof of sustainably-grown palm oil, it should respect and accept certifications from producer countries,” Mah said.

He highlighted that MSPO is the ideal platform to show the world that the production of palm oil is being carried out on a balanced needs of people, profits and planet.

“I strongly believe the process of MSPO certification can improve productivity in the face of scarce resources, such as land and labour,” Mah said.

The minister reiterated the palm oil industry is today the main pillar of the commodities sector, contributing RM67.6 billion in export value in 2016, equivalent to 6.1 per cent of Malaysia’s economy.

With more than two million Malaysians involved on the palm oil value chain including 644,522 smallholders, he said the impact of this industry on the well-being of the people is undeniably huge.

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