The country's oil palm industry is set to accelerate growth with the recent launch of the National Agricommodity Policy 2021-2030 (DAKN 2030).
Malaysian Palm Oil Board (MPOB), tasked with policy implementation, research and development, licensing and regulation, dissemination of market information, as well as advisory services to the palm oil will continue playing its roles in sync with the DAKN 2030's five core thrusts – sustainability, productivity, value generation, market development and inclusivity.
MPOB is looking at strategies to be implemented across the five thrusts over the DAKN 2030 policy period from 2021-2030.
In the area of sustainability, we are strengthening the measures and mechanisms including the nationwide implementation and standards of the Malaysian Sustainable Palm Oil (MSPO) certification scheme to oil palm growers including smallholders to
ensure good practices are consistently implemented along the whole supply chain.
The MSPO standards are being revised and there are more stringent principles and criteria aligned with global sustainability standards and traceability requirements are being developed in consultation with stakeholders. As of 31 January 2022, 95.56 percent of all oil palm planted area has been MSPO-certified.
In addressing the concerns raised by markets that have driven the recent negative image of the palm oil sector, we are encouraging industry players to adopt sustainable practices surrounding workers' rights and welfare, such as in the issues of housing, children's education, and freedom of movement.
MPOB is also improving the safety standards of workers to increase occupational safety and health and eliminate hazards and accidents, especially during harvesting and field operations and where heavy machinery and high pressure is used.
We are focusing on smallholders to adopt good agricultural practices such as optimal fertiliser application, effective pest and disease control, harvesting practices and field management to achieve maximum yields.
We will provide training for them through extension services, in collaboration with plantation companies where feasible and will be further enhanced by guidance and audit through the MSPO certification process.
Smallholders will be assisted to carry out their replanting while plantations are encouraged to optimise their replanting programmes with high-yielding planting materials that have been commercialised to maximise profits in the long-run.
MPOB is enhancing efforts to increase labour productivity in the upstream segment.
Research has been intensified to automate and mechanise field operations through joint public and private sector research.
For the midstream segment, we are focusing on technologies to automate plant-wide processing, quality control at the mills and refineries, as well as fresh fruit bunch (FFB) grading and trash removal processes at the mills.
This will be supported by technical assistance where necessary and certification process to assist lagging mills in upgrading their operations and efficiency.
Our downstream activities among others see research direction and strategies focusing on high-value functional and performance food and non-food such as tocotrienols, feed, oleo and fuel products such as biodiesel.
We are producing novel high-quality products which suit the local climatic conditions and culinary preferences of importing countries while providing cost and nutritional advantages.
Potential food products include liquid cooking oils and solid fats as well as high-value food ingredients such as cocoa butter replacers, substitutes and extenders for chocolates, bakery and confectionery fats, butter oil and milk fat substitutes while non-food include oleo and fuel products.
The mass utilisation of Information and Communication Technology and the Internet of Things will create fully integrated, modern and digital plantations, enabling precision agriculture and extensive data sharing.
Technologies developed by MPOB across the value chain will be actively promoted to small medium enterprises, associations and
agencies to increase industry-wide commercialisation of new technologies.
All in all, DAKN 2030 ensures that the oil palm sector continues to be driven and contributes continuously to the country's Gross Domestic Product and export earnings.
At the same time, the policy will improve the lives of the people especially the rural communities, with reduction in income gaps and poverty rates.
**The writer is Director-General of Malaysian Palm Oil Board