Government backing
The Government will continue to facilitate the development of the industry by making available grants for specific projects from 2016 to 2020. These include an allocation of RM250 million to encourage investments in the production of oleochemicals, as well as food and health value-added products.

Another RM4.5 million will be made available to smallholders and plantation companies to acquire in-field equipment/machinery.

Continuous research into the nutritional aspects of palm oil is equally important. This will provide further opportunities to expand use in food products and capitalise on the nutritional benefits of palm oil.

The health value of pharmaceutical and nutraceutical products derived from palm oil will be given emphasis through laboratory tests and clinical trials by credible medical universities and institutions.


The Government, through the Malaysian Palm Oil Board, is collaborating with renowned scientists around the world. To facilitate this, RM30 million will be allocated from 2016 to 2020.

The Government will continue to implement measures that ensure the long-term resilience of the palm oil industry, both domestically and internationally. These include the B7 programme with effect from 2015, involving the annual consumption of 575,000 tonnes of palm oil.

This will diversify and increase the use of palm oil. It will lower the dependence on petroleum diesel, thereby also reducing greenhouse gas emissions. Plans to upgrade the B7 programme to a B10 programme are in the pipeline.

Other initiatives include the Oil Palm Replanting Incentive Scheme, implemented from Oct 1 to Dec 31, 2015, with an allocation of RM100 million. The scheme aims to replace 83,000 ha of unproductive oil palm trees nationwide.

The Government has embarked on new planting and replanting scheme for smallholders, utilising high-yielding planting materials that will in the long term ensure improvements in productivity and income. This will further enable better management of stock levels and lead to stronger CPO prices.

At the international level, Malaysia and Indonesia, being the two largest palm oil producers, have signed the Charter on the establishment of the Council of Palm Oil Producing Countries (CPOPC). It will enable member-countries to strengthen collaboration in the development of the industry.

Among issues to be addressed are trade impediments in major importing countries; negative campaigns against palm oil; promotion of sustainable practices in the industry; and building awareness of the nutritional benefits of palm oil.

The CPOPC will be an ideal platform for producer countries to ensure that the interests and development of the palm oil industry are safeguarded. I would therefore like to welcome other oil palm cultivating countries to become members.


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