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Last Updated: 29 November 2024

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PRESS RELEASE

KPK FULLY SUPPORTS UNITED MALACCA BERHAD'S BOLD MOVE TO LAUNCH LARGE-SCALE COCOA CULTIVATION IN SABAH

The Ministry of Plantation and Commodities (KPK) fully supports United Malacca Berhad's (UMB) decisive move to embark on large-scale cocoa cultivation, set to begin in Sabah by the end of this year.

Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin, stated that UMB has shown strong interest and commitment to initiate cocoa cultivation at the plantation level during several engagement sessions with KPK this year.

“The involvement of private plantation companies in the upstream cocoa sector is highly encouraged. This will help us increase local cocoa bean production, reducing reliance on imports, while addressing the production gap to meet global demand.

“This initiative will also have a positive impact and instil confidence in the cocoa industry players, particularly smallholders, to reactivate cocoa cultivation activities,” said Chan in a statement today.

Chan noted that cocoa prices have recently reached a historic high, estimated at RM30,000 per metric ton (MT), compared to last year’s prices, which ranged between RM7,000 to RM8,000 per MT. The price surge is due to a sharp decline in cocoa bean supply following the plant disease outbreak in Africa.

“Cocoa cultivation indeed holds great potential for renewed exploration. The Malaysian Cocoa Board (LKM) is actively conducting research and developing technology, utilising the Internet of Things (IoT), automation, and mechanisation to enhance plantation management efficiency and cocoa bean production, while reducing dependence on manual labour,” he added.

Last Wednesday, Datuk Chan Foong Hin held an engagement session with UMB's Chief Executive Officer, Mr. Young Lee Chern, KPK’s Undersecretary for Cocoa and Pepper Industry Development Divisoon, Mr. Cheah Chee Fong, and representatives from LKM to discuss strategic cooperation between KPK and UMB on the large-scale cocoa cultivation project. 

According to Young, UMB’s large-scale cocoa cultivation project will cover an initial 300 hectares at the Millian Labau Estate in Tongod, Sabah.

He stated that this initiative is part of UMB's efforts to diversify its crop yield beyond oil palm, while optimising the efficient use of its plantation land.

“Our goal is to rejuvenate the upstream cocoa sector and establish local cocoa as one of Malaysia’s premium Agri-commodities, known for its quality and well-recognised in international markets.

“To ensure the success of this project, I have personally visited LKM’s Cocoa Development Research Centres in Bagan Datuk, Perak, and Jengka, Pahang, to get technical support and advice from LKM,” he added.

UMB, a private plantation company that has been in operation since 1910, is listed on Bursa Malaysia. Its core business is in oil palm plantation and palm oil mill operations.

According to LKM statistics, the total area of cocoa cultivation in Malaysia stands at 6,123.07 hectares, with 5,317 cocoa farmers as of 2023.

MINISTRY OF PLANTATION AND COMMODITIES

5 SEPTEMBER 2024

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Last Updated: 17 July 2024

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MEDIA STATEMENT

MALAYSIA COMMITS TO SUPPLYING CHINA WITH SUSTAINABILITY-CERTIFIED PALM OIL AND RELATED PRODUCTS

Malaysia is committed to supplying China with Malaysian Sustainable Palm Oil (MSPO) certified palm oil and palm oil products, said YB Datuk Chan Foong Hin, Deputy Minister of Plantation and Commodities.

He added that Malaysia seeks to cooperate with China in establishing a shared consensus during engagements with the European Union, particularly regarding the European Union Deforestation Regulation (EUDR). This collaboration aims to ensure a unified stance and understanding in discussions about the EUDR's implementation and impact. Malaysia looks forward to cooperating with China's Ministry of Ecology and Environment (MEE) in promoting sustainable development, environmental protection, and addressing climate change through the promotion of the MSPO Certification Scheme in the Chinese market, said Chan. These issues were raised by YB Datuk Chan Foong Hin during a

G2G bilateral meeting with Mr. Zhao Yingmin, Vice Minister of Ecology and Environment of China, in Beijing last Friday, which received a positive response from the latter.

YB Datuk Chan Foong Hin added that Malaysia is actively addressing the four challenges presented by the EUDR namely Traceability System, Legal Land Title, Deforestation-Free, and No Forced Labour through the MSPO certification scheme which has been mandatory since January 1, 2020.

Apart from the green value chain, YB Datuk Chan Foong Hin said Malaysia welcomes initiatives by the Chinese Government to use biofuel, especially biodiesel and Sustainable Aviation Fuel (SAF). In this regards, Malaysia pledged its support on these efforts in terms of technical information exchange and supplies of biofuels.

YB Datuk Chan Foong Hin also spoke at the Roundtable Dialogue on the Malaysia-China Green Value Chain Partnership: Advancing Low-Carbon Development and a Just Transition in the Palm Oil Sector: Enhancing the Green Economy and Supporting Resilient Recovery in Beijing last Friday. He stressed that developing a green economy requires international cooperation and the joint efforts of all countries. In this process, Malaysia and China will continue to strengthen policy alignment, deepen technical exchanges, and promote the implementation of more green projects for mutual benefit.

“We hope that through this high-level dialogue, we can work with all parties to explore on low-carbon development and transition to palm oil, promoting the green economy and resilient recovery,” said YB Datuk Chan Foong Hin.

YB Datuk Chan Foong Hin also held a G2G bilateral meeting with Mr. Zhao Zenglian, Vice Minister of the General Administration of Customs of China (GACC), to discuss technical collaboration and trade agreements. “Malaysia looks forward to continued cooperation with the GACC on port supervision and food safety. This is crucial given the smooth collaboration paves the way for exploring international cooperation in key areas, such as palm oil," he said.

YB Datuk Chan Foong Hin led the Malaysian delegation to China for a working visit in conjunction with the 50th anniversary of diplomatic ties between Malaysia and China from 8^th to 12^th July 2024 recently. The fiveday trip was organised by the Ministry of Plantation and Commodities, in collaboration with the Palm Oil Research and Technical Service Institute of the Malaysian Palm Oil Board (PORTSIM) based in Shanghai. He also witnessed MOUs signing between Malaysian and Chinese companies on palm oil and palm oil products supply worth over RM200 million.

MINISTRY OF PLANTATION AND COMMODITIES

17th July 2024       

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Last Updated: 17 July 2024

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MEDIA STATEMENT

MALAYSIA SECURES OVER RM230 MILLION IN PALM OIL TRADE

DEALS DURING CHINA VISIT

YB Datuk Chan Foong Hin, Deputy Ministry Of Plantation And Commodities was on a working visit to China from 8^th to 12^th July 2024 to promote Malaysian agri-commodities in China. During the working visit, Malaysia has secured over RM230 million through palm oil trade deals. A total of four Memorandums of Understanding (MOUs) between Malaysian palm oil companies and businesses in China signed at the 15^th China International Cereals and Oils Industry Summit in Nanjing on 11^th July 2024. The MOU signing ceremony witnessed by the YB Datuk Chan Foong Hin and Datuk Dr. Ahmad Parveez Ghulam Kadir, Director General of the Malaysian Palm Oil Board (MPOB), along with China counterpart Mr Cao De Rong, President of the China Chamber of Commerce for Import/Export of Foodstuffs, Native Produce, and Animal By-products (CFNA).

The four MOUs signed are between Kuala Lumpur Kepong Bhd (KLK) and BOCE Trade Service Co. Ltd for tocotrienol exports; Taobao (China) Software Co. Ltd. and Able Perfect Group for expanding digital market access; Taobao (China) Software Co. Ltd and Sawit Kinabalu Group for crude palm oil (CPO) trade; and JF Nutritech and Palmort Food Tech (Shanghai) for the application of red palm oil in animal feed.

 “Able Perfect, an independent palm oil refinery based in Port Klang, aims to expand its presence in the Chinese market, particularly in refined palm oil and palm shortening, with an estimated business volume of about RM200 million through this trade deal,” Chan said.

Chan highlighted that the MOUs involve expanding the trade of palm oil products into new sectors. This includes leveraging the globally renowned e-commerce platform Taobao to develop online B2B and B2C sales channels, as well as entering the health product market with tocotrienols, a potent form of vitamin E derived from palm oil. These initiatives mark a significant milestone for Malaysian palm oil enterprises. 

Chan emphasized that Malaysian companies must focus on high valueadded and high-quality productions to remain competitive in the global market. With Malaysia’s annual palm oil production maintained at around 18 million tonnes, it is crucial to adhere to the standards of the European Union Deforestation Regulation (EUDR) and sustainable development principles.

Palm oil is one of the most versatile and efficient vegetable oils, with diverse and easily processed characteristics, providing significant advantages and opportunities for R&D and product innovation. Chan added that Chinese authorities has approved the export and use of palm tocotrienols in food applications in March this year. Thus, the overall value of these trade deals is expected to increase in the coming years.

Chan also held a business matching session with around 20 Malaysian and Chinese enterprises, providing a platform for exchange and exploring cooperation opportunities in palm oil trade. He expressed that these initiatives will further deepen bilateral cooperation in the palm oil sector, promoting mutual economic prosperity and win-win outcomes for Malaysia and China.

MINISTRY OF PLANTATION AND COMMODITIES

15th July 2024       

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Last Updated: 17 July 2024

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MEDIA STATEMENT

DEPUTY MINISTER OF PLANTATION AND COMMODITIES

YB DATUK CHAN FOONG HIN

WILL LEAD MALAYSIAN DELEGATION ON A WORKING

VISIT AND AGRI-COMMODITY PROMOTION TO CHINA

Deputy Minister of Plantation and Commodities, YB Datuk Chan Foong Hin, is set to lead the Malaysian delegation to China from 8 July to 12 July 2024 for a working visit and agri-commodity promotions. This working visit is organized by the Ministry in collaboration with Palm Oil Research and Technical Service Institute of Malaysian Palm Oil Board (PORTSIM China).

During the visit, YB Datuk Chan Foong Hin will deliver a keynote address at the 15th China International Cereals and Oils Industry Summit. The Deputy Minister speech will emphasize the significance of palm oil and its role in global food security. He also will highlight Malaysia's commitment to sustainable palm oil production through the Malaysian Sustainable Palm Oil (MSPO) certification. The Deputy Minister will underscore the vital trade relationship between the two nations and leveraging on the Belt and Road Initiative to enhance exports of various agri-commodity products to China. 

YB Datuk Chan Foong Hin is also expected to deliver an opening speech at the Roundtable Dialogue on the Malaysia-China Green Value Chain Partnership: “Promoting Low-Carbon Development and a Just Transition in Palm Oil,

Enhancing the Green Economy, and Supporting Resilient Recovery”. Among the message of the speech will be Malaysia's commitment to sustainability through the MSPO certification and efforts to reduce carbon emissions, including the implementation of biodiesel blending programs aiming to reach B30 by 2030.

During the visit, the Deputy Minister is set to have high level meeting with his counterpart from General Administration of Customs of the People’s Republic of China (GACC), Ministry of Ecology and Environment of the People’s Republic of China (MEE) and Ministry of Commerce of the People’s Republic of China (MOFCOM) to discuss the impending issue between Malaysia and China especially on agri-commodity trade.

MINISTRY OF PLANTATION AND COMMODITIES

7th July 2024