KUALA LUMPUR (Oct 26): The Ministry of Plantation and Commodities is strengthening the specialised oleochemical sector as well as the development of palm-based nutraceutical and pharmaceutical products, to reduce reliance on the export of crude palm oil (CPO).
Deputy Plantation and Commodities Minister Datuk Seri Huang Tiong Sii said this measure is essential to shield the local industry from the risks associated with global CPO market price volatility through the production of high value-added downstream products.
He said one of the specific action plans currently being implemented and which will continue to be pursued involves guiding the industry to produce premium-grade products for the cosmetics, personal care and specialty industrial sectors.
“This effort is carried out through research and services conducted by the Malaysian Palm Oil Board.
“The ministry is also developing the nutraceutical and pharmaceutical sectors by leveraging high-value components found in palm oil, such as tocotrienols (vitamin E) and carotene, for the creation of high-value global health products,” he said during a question-and-answer session in the Dewan Rakyat on Monday in reply to a supplementary question from Datuk Shamshulkahar Mohd Deli (Barisan Nasional-Jempol) regarding the ministry’s specific action plan to accelerate the industry's transition, moving away from the reliance on CPO exports towards high-value-added downstream products, as well as the targets for increasing export value within the sector.
Huang said that with the export value of palm oil and palm-based products having surpassed the RM100 billion mark, the ministry is confident that downstream products processed domestically have the potential to become a key contributor to export value.
“By 2030, the ministry aims for the export value of the nation's agri-commodity products to continue showing strong growth, particularly through an increased contribution from high value-added downstream products,” he said.
Earlier, he said the ministry places emphasis on strategies under the National Agri-Commodity Policy 2021-2030, specifically through the core pillars of value generation and market development, to strengthen the development of the agri-commodity sector's downstream industry.
“Both thrusts focus on the production of high value-added products through the development of new applications, product diversification and increased product complexity, while simultaneously expanding market access by leveraging global supply chains.
“This strategy is further supported by a productivity thrust that emphasises strengthening research, development, commercialisation, and innovation activities, as well as the adoption of technology to enhance the capabilities of local industries," he added.
He was replying to a question from Shamshulkahar, who sought to understand the strategies for strengthening the downstream commodity industry aimed at increasing the value added of local products, reducing reliance on the export of raw materials, and expanding industrial opportunities and income for smallholders.
Huang said one of the ministry's initiatives is to encourage the production of palm-based products, such as oleochemicals, fibres, biocomposite materials and biochemicals.
He said the ministry is also increasing the blending rate of palm-based biofuels into diesel for domestic use, while advancing the second-generation, waste-based biofuel industry through the production of biofuels such as sustainable aviation fuel.
“At the same time, the ministry is encouraging the participation of smallholders in the production of value-added products to create economic opportunities and enhance their income potential,” he added.
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