MPOA lauds move to preserve forest

MPOA lauds move to preserve forest

KUALA LUMPUR: The Malaysian Palm Oil Association (MPOA) fully supports the Primary Industries Ministry’s move to preserve more than 50% of the country’s land as forest, while its members focus on enhancing their oil palm yields.

This comes to light after the world’s largest palm oil producers Malaysia and Indonesia took a firm stance not to allow the expansion of new oil palm plantations.

Last week, Indonesia issued a three-year moratorium to halt permits for new oil palm plantations, while Malaysia is committed to maintain 54.6% of the total land area as forest reserve.

In a statement, MPOA chief executive officer Datuk Mohamad Nageeb Ahmad Abdul Wahab said the move would help improve the governance of sustainable oil palm plantations, environmental sustainability and contribute towards the reduction in greenhouse gases, which would in return, boost plantation productivity.

MPOA represents 118 plantation companies, which account for 1.87 million ha or 40% of the total planted oil palm area in Malaysia.

Its members include big plantation players such as Kuala Lumpur Kepong Bhd, FGV Holdings Bhd, Sime Darby Plantation Bhd and IOI Corp Bhd

Given the high cost of oil palm expansion, scarcity of land and environmental concerns, Nageeb noted that local planters’ appetite for land expansion has gradually “diminished”.

“MPOA members have spent millions of ringgit on R&D to develop high-yielding planting materials.

“Several member companies have embarked on genome research, which is one of the key breakthroughs that has helped to boost oil palm yields,” he said.

Emphasising that oil palm yield enhancement is the future direction of Malaysians plantation companies, Nageeb said higher oil yields would help to reduce the cost of production and increase the competitiveness of Malaysian palm oil in the international markets.

“The high yielding planting materials will improve the efficiency and productivity of the oil palm plantations.

“In this respect, most MPOA members are focusing more towards yield enhancement rather than greenfield expansion,” he said.

Source : https://www.thestar.com.my/business/business-news/2018/09/25/mpoa-lauds-move-to-preserve-forest/#3oguI2d8c9x5UHU6.99