Our oil palm industry which is growing rapidly needs an integrated information communication technology (ICT) system to facilitate the process of managing and monitoring transaction data along the industry chain.
Without such system, access to transactional information throughout the oil palm industry chain is limited, thus, making traceability and effective monitoring difficult.
On the other hand, Malaysian Palm Oil Board (MPOB) licensees also need a simple, fast and safe method to manage their respective transaction information.
As such, MPOB has developed Sawit Intelligent Management System (SIMS), an integrated system which can facilitate the process of gathering and analysing information along the industry supply chain.
The innovative system tracks and monitors daily transactions of the supply chain of palm oil products from the sale of fresh fruit bunches (FFB) to the final products of the manufacturers and the exporters of palm oil.
This data sharing will only happen when both buyers and sellers agree to share their transaction records. SIMS acts as an information collection system as its centralised data collection is able to support the tracking system.
Oil palm smallholders and estate owners can access detailed sales record information such as sale prices, weight, grades of the FFB and information on the buyers. Hence, they can make their choices to sell to buyers who offer reasonable prices and the purchase processes are more transparent with records of prices, weight and FFB grades.
Transaction information will be accessible through the system for registered and licensed growers and thus, simplify the communication process through the system. Additionally, SIMS may also records misconduct or fraud cases.
Buyers and manufacturers can enter their data on sales and purchases through the online system and sellers get access to the information that has been entered for records and reference. Hence, the system helps to reduce operational costs for small-scale licensees to operate their businesses as SIMS is provided at no cost.
Exporters and importers can view daily transaction records related to their activities in the system regularly.
SIMS, an advanced digital technology in line with Industrial Revolution 4.0 and Artificial Intelligence, is designed to coordinate the management of transactional data along the supply chain and its traceability feature enables the government to get accurate and up-to-date information to help formulate policies and make decisions.
Apart from improving operational efficiency, SIMS also supports the tracking of products that are certified with Malaysian Sustainable Palm Oil (MSPO) Certification.
It also ensures compliance with legislation, particularly the European Union Deforestation Regulation (EUDR) as thorough record-keeping is crucial to meet the EUDR's requirements, which mandate comprehensive data and traceability across the supply chain.
SIMS also facilitates licensees to comply with MPOB's regulatory requirements as it provides services for the public and MPOB license holders dealing with the licensing and enforcement division as they can register licensee information, make online payment, access notifications by MPOB through e-Notice, view compound status via e-Compound and lodge complaints through e-Complaint.
SIMS, which uses one database and a single "sign on" can be accessed anywhere with internet access. The system provides integrated reports and its user-friendly reporting format can speed up report preparation process and reduce errors.
SIMS is safe as it meets the standards set by Malaysian Administrative Modernisation and Management Planning Unit and its transaction records can be traced.
The launch of SIMS at the MPOB International Palm Oil Congress and Exhibition (PIPOC 2023) on Nov 8 2023 will strengthen the delivery of services in the digital technology-intensive agricommodity sector.
The implementation and enforcement of SIMS will take effect on July 1 this year.
MPOB is organsing a roadshow to introduce SIMS to oil palm industry players in the country including Sabah and Sarawak beginning this month until February this year.
We hope that SIMS will address the needs of our oil palm industry's stakeholders as the system seeks to enhance efficiency and service delivery, streamline processes, promote transparency and self-regulatory and meet the evolving requirements of the industry.
*The writer is director-general of Malaysian Palm Oil Board