RM30m fund to promote mechanisation in oil palm sector

KUALA LUMPUR: The Plantation Industries and Commodities Ministry has established a RM30 million Oil Palm Mechanisation Fund to promote mechanisation activities within the industry.
Minister Datuk Seri Mah Siew Keong said the fund will be launched with an allocation of RM25 million from the government. He urged the private sector to contribute RM5 million to the fund, which would bring the total funding available to RM30 million.
“We already have one party from the private sector who has committed RM1 million to the fund. This RM30 million is a start, to spur research into mechanisation for our smallholders throughout our estates, to reduce reliance on labour and increase productivity,” he told reporters at the Palm Oil Economic Review and Outlook Seminar 2017 yesterday.
He said the aim is to fund mechanisation research activities in local and overseas research organisations, acquisition of mechanisation technologies as well as modification of equipment and hosting competitions or related programmes.
The fund will be managed by the Ministry via Malaysian Palm Oil Board (MPOB) with participation from plantation firms, academia and others.
Overall, the palm oil industry employs 431,357 workers, of whom 77% are foreign labour. The Ministry aims to increase the labour rate to one worker per 12ha from the current one worker per 8ha.
On palm oil export revenue, Mah said it is confident of increasing the export revenue this year as prices have increased. The Ministry expects the average price to remain around the RM2,700 per tonne level.
He said the Ministry is also working hard to increase imports from India, China and Europe while expanding to new markets like Iran. Malaysian oil palm and palm oil products are currently exported to 162 destinations.
Meanwhile, Mah refuted reports that Nutella, which contains palm oil, could contain cancer causing ingredients, saying that the reports are unfair and not proven.
He said claims that palm oil generates potentially carcinogenic contaminant are only preliminary studies and the contaminant is also present in all other oils.
“This is not new, we have known this since 10 years ago. All oils have contaminant. In fact, Malaysia has taken steps to reduce this. We have a RM50 million fund to reduce the contaminant level. MPOB is working with plantation firms to further reduce the percentage,” he said.