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Last Updated: 22 June 2022

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MEDIA STATEMENT
MINISTRY OFFERS TWO INCENTIVES TO THE PALM OIL SECTOR
TO ENSURE THE SUSTAINABILITY OF SMALLHOLDERS'
INCOME SOURCES
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1. The Ministry of Plantation Industries and Commodities (MPIC) is calling on eligible oil palm smallholders nationwide to apply for incentives under the Ministry to help supplement their incomes and grow their businesses.

2. The Ministry recently opened up applications for two incentives. They are the Oil Palm Integrated Farming Scheme (ITa) and the Agro Bank - MPOB Easy Financing Scheme. Under ITa, oil palm planters who plant pineapples are eligible for incentives of RM7,000 per ha, while those who grow bananas, watermelon, corn, and papayas receive RM3,000 per hectare.

3. This incentive aims to encourage farm owners to diversify their sources of income through cash crops and optimise the use of their land. This is in line with the government's policy on expanding oil palm cultivation areas, with a planting limit of not more than 6.5 million hectares. This intermittent planting can also improve the health of the ecosystem and soil fertility, thus increasing the yield of oil palm production. MPIC is confident that this incentive can also boost the production of food resources and stabilize food security in the country.

4. Those interested can get the application forms from any TUNAS MPOB offices nationwide. Application is opened only to those who own 6.5 hectare of oil palm plantations or less.

5. Under the Agro Bank - MPOB Easy Financing Schemes, smallholders can apply for loans to purchase oil palm seeds, fertilisers, pesticides, and insecticides for their plantation. They can apply for loans worth RM2,500 per hectare up to RM16,250, with a repayment period of 24 months at a two percent interest rate. The loan is to give smallholders a leg-up in their business.

6. These incentives and facilities are part of the Ministry’s continuous efforts to uplift the living standards of smallholders as well as to balance the dynamics of flora and fauna to ensure environmental sustainability. The Ministry is committed to continuing to defend the plight of smallholders with operational modernisation offers to ensure the long-term sustainability of income sources.

YB DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
10 JUNE 2022

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Last Updated: 22 June 2022

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PRESS STATEMENT
BE EXTRA SENSITIVE OF US CBP’S FORCED LABOUR RULE TO
CIRCUMVENT WRO PITFALL
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1. LAST Thursday (June 2), the US Customs and Border Protection (CBP) clarified to the Malaysian media how it derived evidence of forced labour allegations and how it pursued its investigations that led to products from six Malaysian firms still being prevented from entering the US market after being slapped with Withhold Release Orders (WROs).

2. As much as we cannot totally agree with its reliance on remote or third-party evidence in its investigation process, we have to accept that at the end of the day, the enforcement agency is vested with the prerogative to act based on what it deems as proprietary information.

3. The Ministry of Plantation Industries and Commodities (MPIC) has no intention of disputing CBP's prerogative, but feel the claims are unfair and also biased.

4. The ban on Malaysian palm oil and palm oil products (or rubber gloves for the matter) is based only on allegations of forced labour claims made by NGOs and other groups.

5. Nevertheless, CBP in detailing the route and subsequent actions taken against some companies, has reiterated that its investigations were done through reasonable information, analysis, investigations and assumptions.

6. In this regard, Malaysian palm oil and palm oil-related products may have to bear the brunt of being in direct competition with soybean oil of which the US is the world’s leading producer and the second-leading exporter.

7. Now that the modus operandi of the CBP and how their verdict is passed has been made clear, the onus is on industry players – especially those in the labour-intensive rubber gloves and plantation sectors – to pay heed to CBP’s sensitivities and work around a remedial action plan to avoid being slapped again by a WRO for accusations of forced labour.

8. In this regard, MPIC wishes to commend the Malaysian Rubber Gloves Manufacturers Association (MARGMA) for its recent engagement with CBP to further develop a clear respect and understanding of the roles played by both parties in the governance of labour issues.

9. It is learnt that MARGMA has been spearheading such efforts since 2018 when it advocated a zero-debt policy and also initiated remedial actions to be undertaken by each member to dislodge itself from the stigma of forced labour by leveraging the International Labour Organization’s (ILO) 11 indicators as the guiding principle.

10.Above all else, MARGMA has also formed an ESG Unit (environmental, social, and governance unit) and task force to actively educate and sensitise members and its employees on the 11 ILO indicators of forced labour. This vigorous exercise is done via partnership with the ILO), and the US, UK and European Union (EU) embassies/high commissions in Malaysia.

YB DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
8 JUNE 2022

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Last Updated: 21 June 2022

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PRESS STATEMENT
MPIC REMAINS COMMITTED TO IMPLEMENTING MALAYSIA NATIONAL
BIOFUEL POLICY (NBP)

1. The Ministry of Plantation Industries and Commodities (MPIC) assured the Malaysian Biodiesel Association (MBA) that the Ministry is all ears to the group’s proposal that Malaysia should retain its existing biodiesel mandate after all.

2. MBA highlighted why Malaysia should not reduce or stop its biodiesel mandate as the biodiesel industry hardly consumes 1 million tonnes of palm oil annually as opposed to over 40 million tonnes used globally. In expressing its views, the MBA had mentioned that any knee-jerk reaction to banning biofuels derived from vegetable oils would cause havoc in the global vegetable oil market.

3. Nevertheless, it has to be highlighted that the concerns came at a ‘chaotic moment’ where MBA was reacting to a viewpoint by the Malaysian Palm Oil Board (MPOB) a day earlier – on April 25, being precise – that both palm oil exporting and importing countries should set their priorities right by “temporarily re-considering food versus fuel priorities.”

4. Recall that there was an air of desperation back then – Malaysia’s neighbor and the world’s largest palm oil exporter, Indonesia, was on the verge of putting to a halt its shipments of refined, bleached, and deodorized (RBD) palm olein. This prompted MPOB’s director-general Datuk Dr. Ahmad Parveez Ghulam Kadir –an all-around palm oil expert– to convey such views against the
backdrop of a choke in global edible oil supplies amid both adverse weather conditions and the Russia-Ukraine conflict.

5. Needless to say that disruptions from the geopolitical tension have exacerbated price rises in food commodities which were already running at 10-year highs in the Food and Agriculture Organization's (FAO) index – threatening not only a jump in global malnourishment but a spike in global inflation across both developed, developing and under-developed economies.

6. True enough, Indonesia declared an export ban on April 28 on cooking oil and its raw material (which lasted until May 23) in the quest to make cooking oil available at affordable prices for its citizens.

7. But now that normalcy has resumed and calmer heads have prevailed, MPIC wishes to state that it is all status quo on Malaysia’s biodiesel mandate front. On the same note, MPIC wants to take the opportunity to reiterate that Malaysia’s National Biofuels Policy (NBP) which was rolled out in March 2006, remains committed:

 To reduce the greenhouse gas (GHG) emissions rate in line with the
country’s aspiration towards achieving the GHG emissions reduction
target of 45% of GDP by 2030.
 To expand the use of downstream palm oil products and become an
initiative to increase the income of oil palm smallholders through palm
oil market price control mechanisms.
 To help reduce the country's dependence on fossil fuels as one of the
energy security initiatives.

8. To MBA, we thank them for their invaluable feedback on our big role and the effect of the biofuel policy towards conserving nature for younger generation Malaysians. We welcome all constructive criticism or views that can enable both sides of the divide – authorities or industry players – to derive a win-win situation.

YB DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
2 JUNE 2022

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Last Updated: 21 June 2022

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MEDIA STATEMENT
PALM KERNEL WASTE AS ANIMAL FEED TO CONTROL PRICES
AND STABILISE CHICKEN SUPPLY IN THE COUNTRY

1. THE Ministry of Plantation Industries and Commodities (MPIC) will step up efforts to promote the use of palm kernel waste as animal feed to ensure Malaysia has sustainable supply of chickens in the long run.

2. As we know, one of the reasons why chicken prices sometimes soar is due to the high price of chicken feed. It has been reported that chicken feed had gone up from RM500 per tonne to RM1,900 per tonne in some cases.

3. As a result, chickens were being fed less, causing the livestock to grow slower than normal, and in the process restricting the supply of the birds. Malaysia imports most of its chicken feed, mostly made of grain like corn and soybean. These items are facing worldwide shortage due to the war in Ukraine and uncertain weather patterns.

4. However, Malaysia's oil palm plantations produce huge supplies of palm kernel waste. Past researches have shown that feeding fermented palm kernel cake (PKC) and high dietary fat to broilers, can be a good substitute for the imported feed which almost all commercial chicken farms use today.

5. The MPIC will also hold discussions with other stakeholders to review our export policy on PKC in favour of local broilers. Right now, a lot of our PKC is exported for the European cattle industry.

6. The Ministry will also work with relevant agencies, government-linked companies (GLCs) and State Governments to urgently look into how it can quickly ensure the availability of palm kernel waste as animal feed for the Malaysian poultry industry.

7. Additionally, the MPIC will also be working closely with research institutes such as public universities to look into ways to enhance the quality of PKC to make it the preferred choice for chicken breeders. This includes ways of reducing the fibre content in the PKC.

8. MPIC is committed to playing its part to help reduce Malaysia’s dependence on imported livestock feed, in the spirit of Keluarga Malaysia. At the end of the day, it's about putting the interests of the people first and The Ministry is determined to ensure the commodity sectors consistently contribute to the country’s economic development.

YB DATUK HAJAH ZURAIDA KAMARUDDIN
31 MAY 2022