Primary Industries Ministry to submit proposal on stimulus package to MOF

KUALA LUMPUR: The Primary Industries Ministry is having discussions with its stakeholders to draw up a proposal to include industry players in the commodities sector for consideration in the economic stimulus package.

The economic stimulus package, aimed at mitigating the adverse external economic impacts of the Covid-19 outbreak, would be announced by Prime Minister Tun Dr Mahathir Mohamad on Thursday, Feb 27, 2020 at 4:30pm.

“Although some sectors such as tourism were badly affected by the outbreak, the price of crude palm oil (CPO) is still quite good at around RM2,700 - RM2,800 per tonne.

“I am glad that the commodities sector is not impacted that much but my ministry will submit a proposal to the Ministry of Finance (MoF) for their consideration,” Primary Industries Minister Teresa Kok Suh Sim (pix) told a press conference after the launch of the B20 biodiesel programme for the transportation sector here, today.

The programme was launched by Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail.

Commenting on the B20 biodiesel programme today, Kok said the implementation started in Langkawi and Labuan in January 2020, and will now be expanded in phases to Sarawak in April 2020, Sabah in August 2020 and Peninsular Malaysia in June 2021.

She said the implementation of the B20 programme in the transportation sector would support demand for palm oil and stabilise its price while reducing greenhouse gas emissions.

The government had previously mandated the B10 programme in the transportation sector on February 1 last year and the B7 programme in the industrial sector on July 1 last year.

By using B20 biodiesel (20% palm biodiesel and 80% petroleum diesel), the country would consume 1.06 million tonnes of palm oil a year.

Through the implementation of the B20 programme in the transportation sector and the continuation of the B7 programme in the industrial sector, Kok said about 1.3 million tonnes of palm oil annually would be used locally and contribute to the reduction of greenhouse gas emissions amounting to 3.8 million tonnes of carbon dioxide equivalents annually.

In collaboration with petroleum companies such as Petronas, Shell, Petron, Chevron and BHP, the B20 biodiesel would be supplied in phases to over 3,400 petrol stations across Malaysia in line with the implementation plan of the B20 programme.

However, Kok said there are a lot of depots throughout the country and the facilities are currently being upgraded to accommodate up to B30 as this would be the future direction of the country.

“One day we will adopt the usage of B30 biodiesel and by then our facilities will be ready to supply,” she added. — Bernama