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