KUALA LUMPUR, Oct 28: Malaysia's palm-oil industry is facing a host of challenges from home and broad, especially in further expansion of plantations that employ a large number of foreign workers, including Bangladeshis.
Internal restrictive policy regime, growing pressures from environmentalists over sustainability requirements and non-tariff barriers put up on some potential markets are the hurdles the thriving industry hit.
Industry leaders and experts at an international function in the capital of the newly industrialised country (NIC) listed these problems they are facing in reaping benefits from an ever-rising global demand for oils and fats.
The analyses of production and marketing potentialities of palm oil were presented on the first day of the 5th International Palm Oil Trade and Seminar (POTS) 2014, which kicked off at a hotel here Tuesday.
The Malaysian Palm Oil Council (MPOC) has organised the two-day event to familiarise the participants with issues relating to the present state of the palm-oil industry and prospects for exploring business opportunities.
Plantation Industries and Commodities Minister of Malaysia Amar Douglas Uggah Embas opened the POTS 2014 as chief guest. Chairman of the MPOC Lee Yeow Chor also spoke on the occasion.
Mr. Embas said the development of Malaysian palm-oil industry, despite having its immense potential to grow, is crucial for furthering palm-oil acceptance in newer markets.
He also sought a greater cooperation from international oils and fats industry players in exploring investment in downstream higher value-added and diversified palm derivatives.
"... Despite facing a host of challenges, including non-tariff barriers and pressures from environmentalists, the (palm oil) industry will continue to reap the huge benefits arising from the increasing demand for and supply of palm oils and its derivatives," said the minister.
The oils and fats industry as well as its trade are now at a crossroads as the prices have not been upbeat over the months, despite having strong demand for the products on the global market, he said.
Malaysia earned RM 61.36 billion by exporting about 18 million tonnes of palm oil in 2013. The earning was 14.12 per cent down from that of 2012 due to a lower price regime, Mr. Embas apprised his audience.
The country contributed 34.20 per cent to the global palm-oil production and shared 41.20 per cent of the total exports in 2013.
In his speech, the MPOC chairman said over the last two decades the Malaysian palm-oil industry has made a quantum leap, making the country a leading palm-oil exporter. The global palm-oil consumption reached 57.4 million tonnes in 2013, marking an impressive growth of 103 per cent over 2003, Mr. Lee Yeow mentioned.
The opening programme was followed by a couple of plenary sessions where the industry leaders and experts presented a series of papers on various topics related to current issues and future prospect of the industry.
Some 12 companies engaged in palm oil plantations and production and business are taking pat in the trade fair.
jahangir_fe@yahoo.com