KUALA LUMPUR: The allocation of incentives for oil palm replanting programmes may be increased if companies working in the industry can prove that they will work with smallholders, says Datuk Seri Anwar Ibrahim.
The Prime Minister said this was because smallholders account for 28% of the total area used for palm oil production and there is a need for better synergy between the more successful and the lesser-performing stakeholders.
“The overwhelming performance of the palm oil sector is also contributed by smallholders," he said at the launch of the Malaysian Palm Oil Board (MPOB) International Palm Oil Congress and Exhibition 2023 (Pipoc 2023) at the Kuala Lumpur Convention Centre here Wednesday (Nov 8).
ALSO READ: Govt focus on affordable AI for smallholders, says Fadillah
“Recognising their vital role, I have announced the incentive for oil palm replanting programmes with an allocation of RM100mil in Budget 2024.
“I hope this incentive will enable smallholders to increase productivity by replanting old trees with new breeds, including clonal materials, with high yield potential of fresh fruit bunches.
“I am willing to increase this allocation to enhance the synergy between the ones who have better technologies and the smallholders,” said Anwar.
He pointed out that the Madani concept upholds equality and such cooperation would make for a more equal field for all stakeholders in the industry to ensure all can reap profits.
Anwar said the industry is one of the key drivers of the economy.
“It provides employment to more than three million people along its supply chain, including around half a million smallholders.
“The palm oil industry stands out as a robust cornerstone in the pursuit of the Madani Economy, propelling Malaysia towards its aspiration of becoming one of the world's top 30 economies,” said Anwar.
He said that globally, palm oil is the largest produced vegetable oil which accounts for 32% of the 246 million tonnes of global oils and fats in 2022.
ALSO READ: MPOA welcomes palm oil industry initiative
“Global production of palm oil is expected to reach 81.44 million tonnes in 2023, increasing by almost 3%.
“This is achieved by using only about 6% of the total land used by oil crops.
“Palm oil is the most productive oil which yield yields at least four to five times more oil per hectare as compared to other vegetable oils,” said Anwar.
He further stated that Malaysia takes pride as the world's second largest palm oil producer, accounting for 31% of the 87.39 million tonnes produced globally last year.
“This accounts for 49% of the world’s palm oil exports.
“We managed to achieve this with only about 5.67 million hectares of planted area. This also accounts for less than 2% of the total 312 million hectares of area for oilseed crops production globally,” said Anwar.
