BANGI: The price of palm oil will become uncompetitive compared to other producing countries if the windfall profit levy (WPL) on palm oil in this country is not revised.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani stated that his ministry would examine and review the WPL, with the findings to be submitted to the Ministry of Finance (MoF).
"Let the MoF review this so we can reassess and indirectly encourage replanting. When this product becomes competitive, more investors will be attracted to the land we have," he told reporters after the launch of the Transfer of Technology (TOT) 2024 event here today.
Yesterday, during a question-and-answer session in the Dewan Rakyat, Johari said the ministry would collaborate with the MPOB to review the WPL on palm oil for Budget 2025, aligning with the current commodity prices.
"Previously, the cost of producing one metric tonne of palm oil was approximately RM1,800, but now it ranges from RM2,800 to RM3,200, depending on the size.
"The cost structure at RM1,800 may have been suitable for WPL, but it is no longer appropriate when the market trades at about RM3,800 to RM3,900, with costs exceeding RM3,000," he said.
Johari said industry players need to actively utilise the latest technology to increase production to ensure Malaysia's palm oil sector remains competitive and relevant in line with global changes.
"The profits reaped should be reinvested so that the country's palm industry can improve," he said.
MPOB also introduced six new technologies and one new service for commercialisation.
Johari said these encompass the biotechnology cluster, mechanisation and automation and oleochemicals.
He said the six technologies and new services introduced for commercialisation encompass the biotechnology cluster, mechanisation and automation, and oleochemicals.
The six new technologies are the Clonal Palm Series 4 (CPS4) clones, radio-controlled hydrostatic flail mower, palm-based food-grade biodegradable grease, palm-based industrial liquid cleaners, palm-based sticky glue for household and plantation pest control as well as palm-based transformer oil.
The new service introduced is the oil palm pest and rodent biocontrol service.
Johari said the new technologies and innovations developed by the MPOB are in line with the growth of the palm industry's ecosystem and the expansion of the use of palm-based products in the market.
"This initiative also allows the entrepreneurs to explore business opportunities in the palm sector," he said.
The minister also launched MPBO TECH as the registered branding to empower the MPOB technology that has been commercialised.
-- BERNAMA
