Malaysia’s crude palm oil (CPO) prices on 6 November 2020 have shown a significant uptrend, the highest level since May 2012 at RM3,429.50 per tonne. The positive trend was driven by high global demand from major buyers including India and China. The price increase not only contributes to the Gross Domestic Product, but also benefits oil palm growers and industry players in Malaysia, that are grappling with financial difficulties as a result of the Covid-19 pandemic.


The Ministry of Plantation Industries and Commodities (KPPK) through the Malaysian Timber Industry Board (MTIB) is under construction of a bamboo-based surau at Dataran Tembesu in Kuala Nerus. The construction of the surau involved a cost of RM400,000 including development and research costs and took 9 months to complete. The surau with an area of 3,000 square feet will be used as an example of research in the field of bamboo and the construction process will be recorded to be used as study material. This bamboo surau will also be the latest tourism icon in Terengganu

The project was implemented by the Malaysian Timber Industry Board (MTIB) in collaboration with the Kuala Nerus District and Land Office and Bamboo Jungle Adventures Sdn Bhd (BJA). This cooperation was signed through a Memorandum of Agreement (MoA) between the Malaysian Timber Industry Board (MTIB), Bamboo Jungle Adventure Sdn Bhd (BJA) and Golden Pharos Berhad at the Paya Bunga Hotel in Kuala Terengganu witnessed by the Minister of Commodity Plantation Industries, YB Dato 'Dr Mohd Khairuddin Aman Razali. The MoA involves the development of bamboo application manuals in the construction industry which will be a reference for anyone who wants to build a building using bamboo.


The Ministry of Plantation Industries and Commodities together with MPOB and the Malaysian Palm Oil Certification Council (MPOCC) are actively implementing the MSPO certification to ensure the sustainable production of Malaysia's palm oil. The implementation of the MSPO certification has been mandatory covering the plantation sector, oil palm mills and smallholders. As of 2020, the implementation of the MSPO certification for structured smallholders has achieved the target of 100 percent. The MSPO certification of smallholders implemented by MPOB together with the federal and state government agencies involves an area of 724,633.32 hectares of oil palm plantations. The certification of the plantation sector and oil palm mills is also almost fully achieved. A total of 5.20 million hectares or 88.25 per cent of the 5.9 million hectares of oil palm plantations in Malaysia have obtained MSPO certificates. Meanwhile, 434 oil palm mills or 96.02 percent of the 452 oil palm mills have obtained MSPO certificates. For independent smallholders, an area of 311,739.51 hectares or 31.61 percent of the oil palm plantation areas have been MSPO certified. MPOB took the initiative to set up the Sustainable Palm Oil Cluster (SPOC) to implement the MSPO certification for independent smallholders working in oil palm plantations. A total of 162 SPOCs that have been established nationwide have obtained MSPO certification.


The Malaysian Rubber Board (MRB) won the grand prize during the Malaysian commercialization Year (MCT) 2020 Competition organised by MOSTI, through its innovation : Cuplump Modified Bitumin (CMB). CMB is a product whereby rubber crumbs and bitumen is mixed in the paving of roads, which was innovated by MRB researchers since 2014.
The development of this product may indirectly stabilize rubber prices, and solve any over supply issues. This would in turn soften the impact of drop in rubber prices to over 450,000 rubber smallholders throughout the country.
MRB also embarked in a collaboration with DBKL to pave 1.5 km of road leading towards the Parliament Building using CMB, which is a perfect location to showcase the technology.


The Malaysian Rubber Board introduced a smartphone application, RRIMniaga, in 2020 to expedite the application process for Insentif Pengeluaran Getah (IPG), which introduced by the government in 2015. RRIMniaga was developed to shorten and expedite the entire application process to ensure that rubber smallholders receive the incentive quicker than before. The application was launched by the Honorable Minister of MPIC on 27th June 2020 at Kg Ibok, Terengganu.


In line with global developments, Malaysia has implemented the use of biodiesel and petroleum diesel blend as an environmentally friendly fuel for the transport sector since 2011. Starting with the blend of five percent B5 palm biodiesel, the use of palm biodiesel was increased to B7, B10 and later to B20. The launch of the use of B20 for the transport sector was officiated by the Deputy Prime Minister on 20 February 2020 in Kuala Lumpur.

The implementation of the B20 Biodiesel Programme is among the efforts to increase the demand for palm oil domestically. Through the implementation of B20 biodiesel blend, palm oil consumption is estimated to increase by 534,000 tonnes to 1.3 million tonnes per year. Increased consumption of palm oil through the implementation of the biodiesel programme provides sustainable support to the demand for palm oil, thereby ensuring that palm oil prices remain strong.


YB Dato ’Dr. Mohd. Khairuddin Aman Razali, Minister of Plantation Industries and Commodities officiated the Closing Ceremony of the Basic Handicraft Entrepreneur Development Course and Launch of Langkawi Chocolate Hub in Kuah, Langkawi Kedah, on 16 August 2020.

In line with the growth of the downstream cocoa industry in Malaysia, strategic cooperation from relevant ministries, departments and the private sector is crucial in creating new investment growth in the value-added sector of the manufacture of end cocoa products, especially chocolate. In this regard, the Ministry's initiative to develop the Chocolate Hub in Langkawi has seen as a catalyst for the re-growth of the cocoa industry and the promotion of locally produced chocolate products and is believed to revive the industry and lead Malaysia to the glory era of cocoa.

Among the impacts of developing the Chocolate Entrepreneur Hub as proposed are being able to generate income and increase the sales revenue of chocolate entrepreneurs and existing cocoa products, increase the number of entrepreneurs and producers of local cocoa products, increase cocoa consumption among locals and increase employment opportunities particularly in the manufacturing sector and Small and Medium Industries (SMEs).


Minister of Plantation Industries and Commodities, YB Dato 'Dr. Mohd. Khairuddin Aman Razali completed the Closing Ceremony of the Post-Harvest Cocoa Technology Advanced Course organized by the Malaysian Cocoa Board (LKM) on 21 - 22 August 2020 at the Perkasa Mount Kinabalu Hotel, Ranau, Sabah which was attended by 100 cocoa growers from all over the state. In conjunction with the ceremony, the Honorable Minister also handed over the Cocoa Caring Aid 2020.

YB Dato ’Dr. Mohd. Khairuddin handed over the Cocoa Caring Aid 2020 in the form of agricultural input incentives to 2,725 cocoa smallholders in the state under the PRIHATIN 2020 Economic Stimulus Package 2020 (PRE) of RM1.6 million.

The provision of agricultural input assistance is intended to assist smallholder cocoa farmers affected by the COVID-19 epidemic and the implementation of the Movement Control Order (PKP). In this regard, the Government has allocated RM2.69 million under PRE PRIHATIN 2020 for 3,134 hectares in the form of agricultural input assistance to 4,566 cocoa smallholders nationwide.


A total of RM 968,680 has been allocated by the government through the Ministry of Plantation Industries and Commodities (KPPK) as Kenaf 2020 Caring Assistance specifically for kenaf growers in the country affected by the covid -19 pandemic.

The allocation channeled through the National Kenaf and Tobacco Board (LKTN) is given in the form of agricultural input at the rate of RM500 per hectare of crops.

The government is very concerned about the people, including kenaf growers, due to the current covid - 19 pandemic disaster as well as movement control orders that restrict their economic activities.

According to YB Minister of Plantation Industries and Commodities (KPPK) Dato 'Dr. Mohd Khairuddin Aman Razali, a total of 1,357 kenaf growers involving a total area of 1,937.36 hectares have been identified as affected by this pandemic, including not being able to continue planting activities even though farm preparations have been made. This causes the growers to bear the loss of revenue as well as agricultural inputs and farm services that have been provided.

The presentation of replica donation check for kenaf growers of the states involved (Kedah, Terengganu, Kelantan, Pahang and others) was officiated by YB Minister of Plantation Industries and Commodities (KPPK) Dato 'Dr. Mohd Khairuddin Aman Razali in 2020.

10. Handover Ceremony of Caring for Economic Stimulus Package (PRE) Assistance Package and Pepper New Crop Scheme.

In 2020, the government has approved the Caring Economic Stimulus Package (PRE) 2020 to help pepper smallholders affected by the outbreak of covid-19 with a total allocation of RM16.1 million. Through this PRE, smallholders have been assisted with the distribution of agricultural input vouchers and farm equipment to alleviate the burden faced.

Several Caring PRE Assistance Handover Ceremony and Pepper New Crop Assistance Scheme were hold as follows:

Date Location
28 September 2020 Malaysian Pepper Board Headquarters, Kuching.
02 October 2020 Teng Bukap Multipurpose Hall, Padawan.
28 October 2020 Rumah Chunggat, Munggu Ubah, Kabo, Saratok.

 YB Datuk Willie Mongin, Deputy Minister of Plantation Industries and Commodities (YBTM, KPPK) completed the handover session at the ceremony. During the ceremony YB Datuk Willie Mongin also accompanied by the Director General of MPB, Mr. Stanley Liew.


11. Program Pembangunan Ladang Hutan (PPLH)

Program Pembangunan Ladang Hutan bertujuan bagi membangunkan ladang hutan bagi memastikan pengeluaran bekalan bahan mentah yang berkualiti dan berterusan kepada industri perkayuan negara. Sehingga 31 Disember 2020, seluas 126,457.99 hektar ladang hutan telah diluluskan yang melibatkan 82 perjanjian dari 70 syarikat peminjam dari seluruh Malaysia merangkumi Semenanjung, Sabah dan Sarawak.

Bagi tempoh Januari – Disember 2020, lima (5) syarikat baru telah diluluskan nilai pinjaman RM14,737,440.00 dengan keluasan 1,691.18 hektar. Lokasi kawasan adalah di negeri Kelantan dan Perak dengan tanaman spesies Getah (Hevea brasiliensis) dan Batai (Paraserienthes falcataria).

Dua spesies baru juga telah diluluskan iaitu Paulownia dan Eucalyptus yang menjadikan 11 spesies disenaraikan di bawah PPLH.
Pada tahun 2020 juga, seluas 1,020 hektar ladang hutan telah dibangunkan RM2,309,146.47 telah diterima dari bayaran kutipan hasil lateks syarikat peminjam.



The Ministry of Plantation Industries and Commodities (KPPK) has taken the initiative to launch the ‘Palm Oil of God Award’ campaign at the national and international levels. This campaign aims to appreciate the great contribution of the palm oil industry to the country over the years, while raising awareness of the nutrients and benefits of Malaysian palm oil to the community. As a prelude to the pre-launch of the campaign was held on 19 November 2020.

KPPK through the Malaysian Palm Oil Council (MPOC) implemented this campaign by focusing on the role played by the country's palm oil industry in the country's socio-economic development. In addition, the contribution of the palm oil sector to the food and non-food industry including health products as well as environmental conservation will also be emphasized.

Various promotional activities to encourage the involvement of all walks of life will be carried out throughout the country through various platforms. Integrated program implementation including physical and virtual activities will be carried out. The use of new media and social applications will be a priority with the elements of education, awareness, visual appeal and values applied in conveying the message to the community.

In conjunction with the pre-launch of the campaign, KPPK distributed 550 face masks with the official logo of the campaign to all MPs, dignitaries and the media as symbolic of the unity of this campaign in an effort to combat the pandemic pandemic COVID-19 as well as reveal campaign implementation with new norms. This promotional effort is continued from the grassroots level of the ministry.

KPPK also promotes the God Award Palm Oil campaign in line with efforts to cultivate new norms among Ministry staff. The effort was made through the distribution of face masks and hand sanitizers along with campaign information materials. This indirectly applies the value of togetherness as a sign of support and symbolic beginning of the campaign.