KUALA LUMPUR: Malaysia could risk losing RM100 billion in palm oil export value if land grants and licenses are not made a requirement in the approach for oil palm planting and the subsequent sale of fresh fruit bunches to processing mills, according to a malay daily.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani explained that the issue of land ownership, which is proven by land titles and licenses, serves as a requirement for proof in managing forest exploitation without control, which negatively impacts the environment.
He said processing mills must comply with the Malaysian Sustainable Palm Oil (MSPO) certification requirements, which are demanded by importers, particularly the European Union (EU).
"After 2020, opening up forests and planting palm oil without MSPO certification is not allowed. If you don't get the MSPO certification, how can you sell the fruits? These processing mills have MSPO certification, and they cannot accept fruits collected from cleared forests. "For other crops, I will not intervene, but for palm oil, we must be cautious. This is to ensure our products, worth more than RM100 billion, can be exported. If we are not careful, we will lose this RM100 billion," he was quoted in a news report today.
Johari made these remarks in response to former Prime Minister Datuk Seri Ismail Sabri Yaakob's statement urging the Malaysian Palm Oil Board (MPOB) to ease the conditions for selling palm oil fruits without requiring land grants and licenses, as this burdened smallholders, particularly the Orang Asli community.
"We produce 18.6 million tonnes of palm oil. We only consume four to five million tonnes, and the rest must be exported. We export to China, India, and the EU. "The EU has its own certification that we must comply with. To comply, any land intended for palm oil cultivation must have ownership documentation," he said.
Johari suggested that state governments step in to manage land ownership issues to address concerns about smallholders or the Orang Asli community.
Meanwhile, a palm oil mill in Kuala Kangsar, Minsawi Industries, set a record as the first in the world to use AI technology.
Johari noted that the advancements achieved through this technology include improving the palm oil extraction rate, reducing dependence on manual labor, conserving energy, and enhancing operational monitoring systems. "I support this technology.
Every three months, I will monitor its impact. However, based on what has been reported to me, it can significantly reduce costs, including labor costs, particularly for foreign workers," he said.
He added that if all 446 palm oil mills nationwide used AI, it could reduce the dependence on about 8,000 foreign workers.