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Last Updated: 20 September 2022

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MEDIA RELEASE
MALAYSIA INTERNATIONAL AGRICOMMODITY EXPO AND SUMMIT 2022
(MIACES) AS GLOBAL HUB OF AGRICOMMODITY INDUSTRY PLAYERS
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1. YAB Dato' Sri Ismail Sabri bin Yaakob, Prime Minister today officiated the Malaysia International Agricommodity Expo and Summit 2022 (MIACES) which will start from 26TH to 28TH July 2022 at MITEC, Kuala Lumpur and involve participation from 39 countries and over 350 international companies.

2. MIACES is organized by the Ministry of Plantation Industries and Commodities (MPIC) with the support of agencies and councils under the Ministry. MIACES 2022 is a medium of strengthening the network of cooperation between agricommodity players to build a network of transactions as well as explore potential investments in the agricommodity sector. It also opens up the space and potential for industry players to penetrate the international market in a conducive business environment.

3. The expo and summit, which runs for three (3) days today, features the latest commodity products, services and plantation technology under one roof. Various other events were also organised such as conferences, roundtable discussions, business to business (B2B) meetings and prestigious awards nights in recognition of the industry players contribution.

4. MIACES 2022 helps bridge the gap between industry players, accelerating digitalization to build a sustainable ecosystem to improve quality. The expo and summit also enable industry players in each agricommodity network to transact and collaborate in the same hub.

5. Not only that, MIACES 2022 featured a 'Hosted Buyer' Programme that helps entrepreneurs expand their business model and open up opportunities to connect with leaders in the agricommodity sector. The B2B Virtual MIACES platform offers a one-on-one session with exporters, distributors, importers, investors, manufacturers, retailers, merchants, wholesalers and government bodies and agencies.

6. A total of 20 speakers will be involved in mentoring and coaching sessions for startups in the plantation and commodity industries, as well as recruitment, training and upskilling sessions for all. Special Farmers Day during the expo and summit also provides an opportunity for farmers to obtain information on the latest incentives, support and technologies in the industry.

7. All parties are invited to attend MIACES to support the country's agricommodity industry. For more information and pre-registration for activities, visit myagricommodity.com. Admission is free for all visitors.

MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
26TH JULY 2022

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Last Updated: 08 July 2022

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PRESS STATEMENT
MALAYSIA CAN ILL-AFFORD TO BE A “SITTING DUCK” OF THE WESTERN ANTIPALM OIL CAMPAIGN

1. AS the world’s two top palm oil producers, Malaysia and Indonesia, have for the past two decades or so been subject to numerous anti-palm oil campaigns by western countries and the developed world, which eventually affected the marketability of palm oil and its related products in these markets.

2. The smearing campaign, which created negative perceptions towards palm oil –if not systematically and strategically put to rest–, can affect the competitiveness of Malaysian palm oil exports in the long haul.

3. As palm oil and its related products have been a major revenue contributor to the country’s economy as well as having played a significant role in reducing rural poverty (by providing employment) and improving infrastructure, Malaysia has resorted to counter such malicious/baseless claims via a ‘soft consultancy ’approach.

4. Historically, the negative image of palm oil started taking shape in Europe beginning in 2003, revolving around issues pertaining to sustainability before moving to the nutritional aspects of palm oil.

5. The current practice of ‘no palm oil ’or ‘palm oil-free labelling in France and Belgium can be traced back to 2008, when the French retail chain Carrefour started to substitute palm oil in potato chips with sunflower oil.

6. Singling out palm oil with the ‘palm oil-free marketing and labelling campaigns convinced consumers that palm oil is terrible whether for nutritional or environmental reasons or both.

7. Recall that in 2019, the European Union (EU) has classified palm oil as a crop with a high-risk rate towards indirect land-use change, hence deemed to contribute to deforestation and loss of biodiversity. EU member countries are currently adoptingthe European Union Renewable Energy Directive II in their respective legislation.

8. Such a classification exercise will affect palm oil being a potential biofuel source since its usage will be gradually reduced beginning in 2023 before being ‘eliminated totally ’ as an EU biofuel source in 2030.

9. This has led to Malaysia initiating legal action against the EU and two of its members – France and Lithuania – on 15 January 2021 under the World Trade Organization’s (WTO) Dispute Settlement Mechanism. Such development came about after the EU implemented the directive without considering Malaysia’s commitment and views, even after the latter had given its feedback and sent economic and technical missions to Europe.

10.Malaysia will also act as a third party in a separate WTO case lodged by Indonesia, which is the world’s biggest palm oil producer, as a sign of solidarity and support.

11.In all fairness, Malaysia is left with no choice but to retaliate against “the bullies” even as it understands that the ensuing legal process can be dragging and costly, given it entails massive preparation and submission of documents for argument as well as meticulous research and ‘countless hours of meeting and deliberation by the panel tasked to look into the matter.

12.Thus far, no other restrictions have been imposed by the EU against palm oil. However, the fact remains that medium- to long-term damage has already been inflicted on palm oil’s image in the eyes of European consumers.

13.In this regard, the Ministry of Plantation Industry and Commodities (MPIC) will continue to closely monitor any latest developments from a legislation standpoint by the EU, which can potentially tarnish the reputation of palm oil, hence adversely affecting the viability of the palm oil and palm oil-related industry in Malaysia. I call upon all Malaysians to join MPIC and rise up to defend our palm oil in the eyes of the world.

YB DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
22 JUNE 2022

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Last Updated: 08 July 2022

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MEDIA STATEMENT
AUTOMATION IN THE PLANTATION SECTOR AS A LONG -TERM
SOLUTION TO REDUCE DEPENDENCE ON FOREIGN WORKERS

1. The Ministry of Plantation Industries and Commodities (MPIC) will continue seeking solutions to overcome the manpower shortage in the plantation sector, especially oil palm. MPIC is aware of the woes faced by the Malaysian Estate Owners ’Association (MEOA) where a severe labour crunch of about 120,000 workers is said to be capable of causing losses in earnings by up to 5%-10%.

2. All parties should be aware that among the main reasons for the shortage of manpower in the plantation sector was due to the closure of international borders, to curb the spread of COVID-19 in the country and protect the people from the infectious disease.

3. The ministry is currently working closely with the Human Resources Ministry, Wisma Putra, the Immigration Department and the Co-operative Commission Malaysia, among others, to look into ways to expeditiously resolve this issue.

4. The Government had in September 2021 approved plans to bring in 32,000 migrant workers for palm oil estates nationwide, and MPIC remains cautiously optimistic of achieving this target, if not more, although the issue of permits had been brought to our attention.

5. Plantation owners must also in the future, be open to workers from countries like India and Pakistan, and not be too dependent on workers from Indonesia and Bangladesh. Moving forward, MPIC hopes that plantation owners will look into long-term solutions to cut down their dependency on foreign workers.

6. Through technological studies and research conducted by the Malaysian Palm Oil Board (MPOB), plantation owners are advised to increase the use of automation such as drones for the purpose of surveillance and pest control. MPIC is confident that the use of automation at plantations will attract local workers to this sector.

7. The use of greater automation will help reduce our dependency on foreign workers and make the industry more resilient in the long-run.

8. In this respect, MPIC feels that the current labour crunch in the palm oil sector will spur planters to start investing in technological tools and boost their own bottom lines in the long-run. MPIC believes that a greater uptake in automation can help position palm oil as the preferred edibl oil globally, in line with the ongoing "Malaysian Palm Oil Full of Goodness" Campaign.

YB DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
18 JUN 2022

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Last Updated: 22 June 2022

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MEDIA STATEMENT
MINISTRY OFFERS TWO INCENTIVES TO THE PALM OIL SECTOR
TO ENSURE THE SUSTAINABILITY OF SMALLHOLDERS'
INCOME SOURCES
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1. The Ministry of Plantation Industries and Commodities (MPIC) is calling on eligible oil palm smallholders nationwide to apply for incentives under the Ministry to help supplement their incomes and grow their businesses.

2. The Ministry recently opened up applications for two incentives. They are the Oil Palm Integrated Farming Scheme (ITa) and the Agro Bank - MPOB Easy Financing Scheme. Under ITa, oil palm planters who plant pineapples are eligible for incentives of RM7,000 per ha, while those who grow bananas, watermelon, corn, and papayas receive RM3,000 per hectare.

3. This incentive aims to encourage farm owners to diversify their sources of income through cash crops and optimise the use of their land. This is in line with the government's policy on expanding oil palm cultivation areas, with a planting limit of not more than 6.5 million hectares. This intermittent planting can also improve the health of the ecosystem and soil fertility, thus increasing the yield of oil palm production. MPIC is confident that this incentive can also boost the production of food resources and stabilize food security in the country.

4. Those interested can get the application forms from any TUNAS MPOB offices nationwide. Application is opened only to those who own 6.5 hectare of oil palm plantations or less.

5. Under the Agro Bank - MPOB Easy Financing Schemes, smallholders can apply for loans to purchase oil palm seeds, fertilisers, pesticides, and insecticides for their plantation. They can apply for loans worth RM2,500 per hectare up to RM16,250, with a repayment period of 24 months at a two percent interest rate. The loan is to give smallholders a leg-up in their business.

6. These incentives and facilities are part of the Ministry’s continuous efforts to uplift the living standards of smallholders as well as to balance the dynamics of flora and fauna to ensure environmental sustainability. The Ministry is committed to continuing to defend the plight of smallholders with operational modernisation offers to ensure the long-term sustainability of income sources.

YB DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
10 JUNE 2022