EFFORTS TO DEAL WITH ANTI-PALM OIL CAMPAIGN REMAIN DESPITE MPOB OFFICE CLOSURE ABROAD - CHAN

KUALA LUMPUR, Nov 18 (Bernama) -- The closure of a few Malaysian Palm Oil Board (MPOB) offices abroad does not affect efforts to deal with the anti-palm oil campaign and the negative perception of the commodity in the international market, said Deputy Plantation and Commodities Minister Datuk Chan Foong Hin.

He said the ministry has taken a strategic approach, including focusing on promotional efforts and diplomatic relations with international platforms, as well as establishing cooperation with strategic partners and non-governmental organisations to promote palm oil. 

“Although the MPOB Brussels office for the European Union market is temporarily closed, there are still Malaysian Palm Oil Council (MPOC) offices abroad as well as regional offices to deal with issues related to palm oil,” he said at the winding up session of the Supply Bill 2025 at the committee stage for the ministry in the Dewan Rakyat today.

Chan also said the closure of the MPOB offices aligns with the government's rationalisation efforts in dealing with overlapping functions of government agencies.

Five MPOB offices, namely in Brussels, Belgium; Tehran, Iran; Cairo, Egypt; Washington DC, USA; and Karachi, Pakistan, have been closed, while the Shanghai, China office is still operating.

“An in-depth study on the operational requirements and effectiveness (of the agency’s office) in palm oil promotion was done, and this is a measure being implemented,” he stated. 

Meanwhile, Chan also said that a total of RM15 million has been allocated to promote palm oil, of which RM5.63 million is set aside for palm oil information campaigns for consumers in Europe and RM4.3 million for lobbying activities. 

In terms of incentives for the use of technology, mechanisation, and automation, he said the Ministry of Plantation and Commodities calls for more local workers to participate in reinvigorating the agricommodity sector. 

“Among the incentives is tax exemption through accelerated capital allowance (ASA).

“As announced by Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2025, the government wants industry players to receive ASA benefits for fixed asset investments and improvement measures implemented, such as smart digital farming technology, automation, mechanisation and the Internet of Things,” he said. 

Meanwhile, responding to a question about cocoa, Chan said the cocoa industry needs the involvement of large plantation companies’ to bring economies of scale to create a mature ecosystem.

Based on the ministry’s records, he said the cocoa planting area converted to other commodities is estimated at 350,000 hectares, while the latest area of cocoa planting stands at 6,123.07 hectares. 

"The main problem faced by this commodity is an ecosystem-related issue, and the ministry needs to identify factors that can help cocoa planting, including the involvement of large companies," he said.

Replying to a question from Bakri Jamaluddin (PN-Tangga Batu) regarding the labour shortage in cocoa farms and the production of premium cocoa, which has dropped to 43 kilogrammes (kg) per hectare compared to 1,400 kg per hectare, Chan said the ministry, through the Malaysian Cocoa Board, has also taken steps such as creating 54 types of commercial cocoa clones to increase production of cocoa types. 

“One of the ways to rejuvenate the cocoa industry and attract interest in cocoa cultivation is through the 'Farm to Table' concept, which refers to the model from seed to chocolate; for example, among those showing interest are United Melaka Bhd and SLDB, a Sabah state government-linked company. 

"Under the Malaysian Cocoa Board, we will have four new projects next year. We have carried out a lot of research and development programmes and so on," he added.

-- BERNAMA