Malaysia: Government serious about resolving palm oil industry’s issues

The government is serious about resolving the issues surrounding the palm oil industry in the country, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.

The issues, particularly environmental and social issues, could affect the sector’s RM102 billion export potential as the country produces between 18.5 tonnes and 18.6 tonnes of crude palm oil.

Both the federal and state governments benefit from the industry in terms of tax collection, while almost one million people are employed by the industry. The industry also supports 450,000 smallholders throughout the country.

“We are facing a big issue now. You never saw it in the past, but over the past 15 years people have been talking about the environment everywhere you go.

“If we can’t address the environmental issue, we will be affected. That is why the government now audits under the Malaysian Sustainable Palm Oil certification scheme,” he said during the opening of Sarawak Oil Palms Refinery and Fractionation Plant 2 at the Kidurong Industrial Estate last Saturday.

Tags: smallholders, export, Crude palm oil, palm oil, tax