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Last Updated: 26 January 2024

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KUCHING (Jan 25): The Sarawak Timber Industry Development Corporation (STIDC) recently hosted a field visit for Malaysian Panel Manufacture Association (MPMA) delegates to showcase the Licence for Planted Forests (LPF/0043) project’s best practices in planted forest management.

MPMA chairman Datuk Wira Sheikh Othman Rahman expressed his enthusiasm for the LPF/0043 project, calling it the association’s best option in terms of tropical trees for timber industry product manufacturing.

“Visiting this silviculture initiative, which I think it is the biggest nursery in Malaysia, also in Southeast Asia, or incomparable to other parts of the world that I’ve visited.

“I think this is the best for us in terms of tropical trees for us to produce timber industry products such as plywood, chipboard, and furniture wood needed. We hope the corporation will help us see the vision to build up nurseries in Peninsular Malaysia,” he said.

Representing MPMA’s members, including Forest Research Institute Malaysia (FRIM), Malaysian Timber Industry Board (MTIB), and Malaysian Timber Council (MTC), Sheikh thanked STIDC’s commendable efforts and expressed a desire for closer collaboration and knowledge exchange for the mutual benefit of both parties.

STIDC assistant general manager of sustainable resource management Hamzah Morshidi said he hoped the visit would further strengthen collaboration.

“This partnership between STIDC and MPMA is poised to promote sustainability and innovation in the timber industry, further solidifying Malaysia’s position as a global leader in sustainable timber management.

“Through their joint efforts, both organisations envision driving the industry forward, while establishing best practices and fostering continuous growth as the importance of partnerships in the field of sustainable industrial tree planting (ITP) activities, timber management operations, and practices,” he said.

The visit included Sabal Nursery, Simunjan’s trial plot of eucalyptus plants and a hands-on encounter with the complexities of tree planting.

The highlight of the tour was a visit to Sarawak biggest planted forest project, which is LPF/0043 in Bintulu, where delegates received in-depth briefings on planted forest management and best practices.

The delegation explored research and development plots, obtaining insights into innovative practices.

In addition, they also witnessed field operations for planting and harvesting, which further emphasised a commitment to responsible forest practices.

https://www.theborneopost.com/2024/01/25/stidc-showcases-planted-forest-best-practices-to-panel-manufacturers/

Sumber : The Borneo Post

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Last Updated: 26 January 2024

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KUALA LUMPUR: Malaysia's cocoa sector has not yet achieved a satisfactory level of self-sustainability, according to Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani. 

He noted that the production of cocoa beans in the country has declined significantly. 

"At one point in the past, Malaysia's cocoa bean production reached as high as 225,000 tonnes, compared to the current output of only around 500 tonnes.  

"The decreasing production of cocoa beans in Malaysia has led to many industries that produce cocoa products having to import cocoa beans from abroad. 

"However, due to Malaysia's strong capabilities in the midstream and downstream sectors of the cocoa industry, we have become the fifth largest cocoa grinder in the world," he said after an official working visit to the Malaysian Cocoa Board (LKM) recently. 

As such, Johari suggested that a key focus for the local cocoa sector should be on enhancing technological development in the midstream and downstream sectors, as well as engaging in value-added activities. 

At the same time, the ministry will study how to systematically redevelop the production of cocoa beans to gradually meet the necessary domestic demand. 

Also present during the working visit were Agriculture and Commodities deputy minister Datuk Chan Foong Hin, LKM chairman Datuk Matbali Musah and LKM director-general Datuk Dr Ramle Kasin.

https://www.nst.com.my/news/nation/2024/01/1005404/malaysian-cocoa-sector-not-yet-sustainable

Sumber : New Straits Times

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Last Updated: 26 January 2024

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KUALA LUMPUR (Jan 24): Palm oil output in Malaysia, the number two supplier, could rise 5% this year after the government allowed plantations to hire foreign workers, said Joseph Tek, chief executive of the Malaysian Palm Oil Association.

The admission of new workers potentially means that an additional 5.2 million tonnes of fresh fruit bunches can be harvested, the top growers’ group said in a statement. That translates into 1 million tonnes of crude palm oil, Tek said.

The extra tonnenage would also generate revenue of close to RM4 billion, bringing “significant relief” to the industry, which is grappling with a substantial shortage of 40,000 workers, the group said. The news pressured benchmark palm oil futures in Kuala Lumpur trading.

The government has been trying to reduce reliance on cheap foreign labor across many industries including manufacturing, construction and plantations, and seeks to regulate admission processes to prevent any issues like forced labor, worker exploitation and human trafficking.

In March last year, the country temporarily suspended the application and approval process for foreign workers under a quota system in order to speed up the entry of workers already approved.

Chronic shortage

Malaysia’s palm oil industry is heavily reliant on foreign labour. A chronic shortage of workers resulted in revenue losses estimated at RM20 billion in 2022 and continued to curb growth in output last year.

Palm oil production in Malaysia totaled 18.55 million tonnes in 2023, and earlier this month the Palm Oil Board, which regulates the industry, predicted output of 18.75 million tonnes for this year. That’s less than half the supply from top producer Indonesia, where output has expanded steadily in recent years.

The association represents over 40% of the oil palm area in Malaysia. Members include some of the top plantation companies such as Sime Darby Plantation Bhd, Kuala Lumpur Kepong Bhd, IOI Corp and FGV Holdings Bhd.

Palm oil futures in Kuala Lumpur climbed as much as 0.9% to RM3,985 a tonne on Wednesday, before paring gains to RM3,955 by midday.

The higher output estimate is capping the rally, said Gnanasekar Thiagarajan, head of trading and hedging strategies at Kaleesuwari Intercontinental. The move to allow more foreign workers “adds to supply woes,” he said.

https://theedgemalaysia.com/node/698490

Sumber : The Edge Malaysia

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Last Updated: 26 January 2024

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BANGI: The government, through the Ministry of Finance and Agriculture and Commodities Ministry, has established a special fund for the Smallholder Palm Oil Replanting Financing Incentive Scheme (TSPKS 2.0). 

Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani said the scheme, which involves an allocation of RM100 million, will be fully distributed by Agrobank for the replanting of oil palm, specifically benefiting palm oil entrepreneurs and individual smallholders.

Applications are open starting from Jan 15 and the forms can be obtained from any nearby Tunas/Agrobank office in the smallholder's area. 

"The provided funds consist of a grant component (50 per cent) and another part is financing (50 per cent) for individual smallholders.  

"The disbursement of funds for both the grant and financing components will be entirely handled by Agrobank.  

"However, the repayment by applicants will only involve 50 per cent (including two per cent interest) of the total disbursed amount.  

"This initiative aims to benefit private small oil palm planters with a total land area of 5900 hectares," he said at a press conference during the Malaysian Palm Oil Board's Excellence Awards 2023 in Bangi today. 

According to Johari, the financing amount is RM14,000 per hectare for small oil palm planters in Peninsular Malaysia, and RM18,000 per hectare for small oil palm planters in Sabah and Sarawak.  

The financing is in a combination of grants and funding for the following activities, namely the preparation of planting areas, purchase of high-quality oil palm seedlings, and the maintenance of the plantation until the oil palms reach three years of age (36 months) after planting. 

On that note, Johari said the government is committed to ensuring the long-term economic viability of the palm oil industry. 

He added that his ministry's main focus has been to engage with all stakeholders in this sector to identify and address specific issues affecting the country's palm oil performance. 

"Besides labour, a primary focus for industry players, issues such as plantation management, palm replanting, and timely fruit harvesting are emphasised.  

"Research and development (R&D) efforts have the potential to enhance the overall productivity of the palm oil industry.  

"Furthermore, mechanisation and automation can improve labour efficiency and overall productivity," he noted. 

Johari also highlighted that the global demand for palm oil is expected to increase with the growing world population.   

He said considering limited resources, Malaysia, as the world's second-largest palm oil producer, must seize this opportunity by enhancing productivity and production.   

"The global food security issue urges countries like Malaysia to boost productivity in agricommodity production to meet the rising demand," he said.

https://www.nst.com.my/business/corporate/2024/01/1004953/malaysia-sets-rm100mil-fund-smallholders-replant-palm-oil

Sumber : New Straits Times