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DIPOM 2022 Presentation Nik Aznizan Palm Oil Current Issues & Challenges
DIPOM 2022 Presentation Nik Aznizan Palm Oil Current Issues & Challenges
PALM OIL:
CURRENT ISSUES & CHALLENGES
Nik Aznizan Nik Ibrahim
International Trade Unit
Economics and Industry Development Division
Malaysian Palm Oil Board (MPOB)
Presentation Outline
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*Cotton oil, Groundnut oil, Sesame oil, Corn oil, Coconut oil, Butter (as fat), Lard, Tallow & Grease, Linseed oil, Castor oil.
Sources: Oil World; MPOB
MINISTRY OF PLANTATION INDUSTRIES & COMMODITIES
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PRODUCERS EXPORTERS
OTHERS OTHERS
MALAYSIA PRODUCING MALAYSIA PRODUCING
24% COUNTRIES 31% COUNTRIES
17% 13%
PO Production PO Export
76.39 Mn T 51.03 Mn T
Sources: Oil World; MPOB
MINISTRY OF PLANTATION INDUSTRIES & COMMODITIES
01 Indonesia, Malaysia, 05
Total : 76.23
22% 4%
million tonnes
02 India, China, 04
11% 9%
03 EU,
10%
Note: Consumption includes edible & non-edible
Source: Oil World
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The Importance of
Malaysian Oil Palm
Industry
15
Palm Palm-Based 2.88 3.09 6.6
Palm
10
Oil Oil Oleochemicals
Palm Palm 17.39
15.56
5 Oil Oil Biodiesel 0.36 0.38 4.3
16.22 17.43
0 Finished Products* 0.56 0.58 4.2
2021 2020
CPO PPO PK Oil PK Cake Oleo Biodiesel FP Others Other** 1.52 1.50 1.3
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Palm Oil
RM64.62 Bn RM108.52 billion
(60%)
Others
RM10.43 Bn
(10%)
Source: DOSM
3.60 Mn T
INDIA
31.3%
CHINA 1.87 Mn T
31.4%
E.U 1.64 Mn T
15.4%
TURKEY 0.70 Mn T
14.2%
KENYA 0.67 Mn T
29.2%
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RANKING:
1. Electrical & electronic products
2. Petroleum products
3. Chemicals and chemical product
4.Palm oil
5. Rubber products
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• Deforestation
Environmental • Loss of biodiversity
Impact
• Greenhouse gases (GHG) emissions
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1980 2020
2000
1680
1502
NO OF PRODUCTS
1500
1000
687 729
500
318
189
0
2012 2013 2014 2015 2016 2017 2018 2019
YEAR
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193
1,847
2
43
CCF: Choose Cruelty Free
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156 products
77 countries
Malaysia Electronics Forced Labour
Malaysia Garments Forced Labour
Malaysia Rubber Gloves Forced Labour
Malaysia Oil (palm) Child Labour, Forced Labour
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Source: OurWorldinData.org
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Source: ForFreeChoice
MINISTRY OF PLANTATION INDUSTRIES & COMMODITIES
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ENVIRONMENTAL MATTERS
PESTICIDE USE
• Environmental Land Conservation Act 1960
• Pesticides Act 1974 (Pesticides (revised 1989)
Registration) Rules 1988 • Quality Act 1974 (Environmental Quality)
• Pesticides (Licensing for sale & storage)
Rules 1988 C D (Prescribed Premises) (Crude Palm Oil)
Regulation 1977
• Pesticides (Labeling) Regulations 1984 • Environmental Quality (Clean Air)
B E •
Regulation 1978
Environmental Quality (Prescribed
Activities) (Environmental Impact
Assessment) Order 1987
LABOUR & EMPLOYESS MATTER
F
• Labour Law
A
>60
• Workers’ Minimum Standard of Housing &
Amenities Act 1990
• Occupational Safety & Health Act1977 BIODIVERSITY
• Factories & Machinery (Noise Exposure) • National Biodiversity Policy 2016-2025
Regulations 1989 LAWS &
• Passport Act 1966
• Education Act 1996 REGULATIONS
Licence
Categories
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10 13 8 6 5 4 3 1
Beef and Pig and Soy Maize Palm oil Wood Rice Sugar cane Rubber
other poultry products
ruminant
products
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2017 18,323,502
14,844,874
2016 18,241,716
14,702,224
18,389,686
Year
2015
14,554,254
2014 18,273,201
14,639,166
2013 18,062,091
14,881,849
0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000
Area (Hectares)
Source: OurWorldinData.org
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Malaysia voluntarily agrees to cut the GHG emission intensity by 45% by 2030 relative to
emission intensity GDP in 2005 as part of its commitment to COP21. As of 2013, 33%
reduction has been achieved.
The Malaysian oil palm industry in now focusing on improving productivity and yield, rather
than expanding land. Malaysia reiterates its commitment made at the Rio Summit in 1992
to retain at least 50% of the land area under forest cover. The area under forest cover in
Malaysia is 55.6% (2017).
Malaysia, as a world leader in sustainable palm oil production, has put in place various
environmental measures while successfully uplifting the lives of rural communities through
palm oil cultivation. This has proved that oil palm industry certainly contributes to
achieving the United Nations Sustainable Development Goals.
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Dugong
Orang Utan
Sun Bear
Green Turtle Julung-Julung Crocodile Hawksbill Turtle
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In 2016, this
In 2004,… only 40% figure had
of orang utan habitat was increased to
within the protected area
85%
MINISTRY OF PLANTATION INDUSTRIES & COMMODITIES
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Developed Economies
and EU also profited
from forced labour
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THE FACTS: THE MALAYSIAN OIL PALM INDUSTRY: CONTRIBUTES TOWARDS POVERTY
ERADICATION
Year Average Income (RM) (USD)
FELDA Settler* Independent National Poverty
Smallholder** Line Income***
2007 2,221 (533) 1,209 (290) 740 (177)
2008 3,278 (786) 1,094 (262) 691 (166)
2009 2,459 (590) 944 (226) 800 (192)
2010 3,419 (820) 1,259 (302) 720 (173)
2011 4,648 (1,115) 1,413 (339) 800 (192)
2012 3,926 (941) 1,868 (448) 763 (183)
2013 3,787 (908) 1,520 (365) 860 (206) The oil palm industry has
2014 3,874 (929) 1,952 (468) 930 (223) consistently contributed towards
poverty eradication and narrowing
2015 2,689 (645) 1,175 (282) 930 (223)
of the income gap between rural
Oil Palm Smallholder is defined as farmer who owns land or in and urban folks by creating rural
Source: aggregate of less than 40.46 hectares (100 acres). Average size
* FELDA townships where residents enjoy a
is 3.9 ha.
** MPOB good quality of life with adequate
*** Ministry of Economic Affairs Two Categories of Smallholders social infrastructure (e.g. housing,
1) Organized smallholder health, religious facilities)
2) Independent smallholder
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300 10.0
7.8 billion 9.0
World Consumption of Oils & Fats
250.0
250 238.3
228.5 8.0 World consumption of oils
219.2
210.7 237.5 and fats is projected to
Population (billion)
178.2
184.4 increase by
171.7 6.0
147.7
153.9
159.9 164.1 5.3% from 237.5 mil.
150 131.6
139.4 5.0 tonnes (2020) to 250
121.4 125.5
113.4 117.9 4.0 mil. tonnes (2050)
100 to meet the demands of
3.0
9.8 billion population
2.0
50
1.0
0 0.0
Consumption Population
Sources: Oil World 2021 *Forecast: UNITED NATIONS DESA
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Technologies Rapid
Breakthrough Urbanisation
Demographic and
Social Changes
MINISTRY OF PLANTATION INDUSTRIES & COMMODITIES
02
Call for More Nutritious Foods.
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2009 2050
G7
US$ 29.0 US$ 20.9 We E7
trillion trillion
GDP GDP are in US$ 69.3 US$ 138.2
trillion trillion
this GDP GDP
G7 E7 space
(US, Japan, (China, India,
(US, Japan, (China, India,
Germany, UK, Brazil, Russia,
Germany, UK, Brazil, Russia,
France, Italy, Indonesia, Mexico,
France, Italy, Indonesia,
Canada) Turkey)
Canada) Mexico, Turkey)
Conclusions
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Malaysian oil palm industry aligns all its sustainability efforts to the SDGs - have
developed an articulation on how we approach and contribute to the SDGs.
Palm oil is a vegetable oil that contributes to the attainment of SDGs, in other
words, If there is no palm oil, it would be difficult to attain these SDGs.
Nature’s Gift To
Malaysia,
Malaysia’s Gift To
The World!
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Thank you
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