Master plan in the works to boost state’s palm oil industry

Uggah (second right) taking a look at a bag of fertiliser on display at a booth. — Photo by Muhammad Rais Sanusi

KUCHING: A comprehensive master plan will be drawn up by the end of September this year to make the state’s palm oil industry more productive and competitive by focussing on three major areas.

Deputy Chief Minister Datuk Amar Douglas Uggah Embas said the idea was also to bolster the industry’s contribution to the state’s revenue and improve the livelihood of rural folk – since the industry is essentially rural based.

The first area of focus is to develop the industry’s potential and address internal issues.

“Of particular importance is the need to increase productivity to make the industry more competitive in the global market. Besides adopting ‘good agriculture practices’ (GAP), this will require greater mechanisation and automation in field operations in view of the critical labour problem facing the industry,” he said at the 12th Incorporated Society of Planters (ISP) National Seminar 2016 here yesterday.

He added that technical and infrastructural support issues would also be addressed.

“Beyond upstream activities, there is a need to develop more robust and well planned downstream and value-added processing activities, such as production of oleo-chemicals.”

The second focus, said Uggah, who is also Modernisation of Agriculture and Rural Economy Minister, would be to address the marketing requirements for palm oil products globally.

“It is important to comply with international market requirements and environmental standards as well as to reflect the nation’s sustainability policy and commitment to address climate change,” he said.

“In this regards, the master plan shall determine how this industry can be developed profitably and sustainably. Most importantly, we will address how the state’s peat land is to be developed and managed responsibly, with nominal impacts on our valuable land resources and state biodiversity.”

Uggah pointed out that with the oil palm industry being essentially rural based, the third focus of the master plan would be to come up with ways to help smallholders earn more.

“This may include the development of nucleus plantations that integrates the surrounding smallholders. In this connection, I would like the private sector to play a more active role in the development of oil palm plantations through partnership with the landowners for mutual benefits.”

At a press conference later, Uggah said the state government was looking into ways to develop native customary rights (NCR) lands.

“We still have vast areas of NCR lands, unlike in Peninsular Malaysia where there’s not much land available. Sabah has limited lands, too,” he said.

“As Chief Minister Datuk Patinggi Tan Sri Adenan Satem has made it clear he will not allow anymore new plantations on state lands, we are looking to develop NCR lands either through joint venture with the private sector or through the development of smallholders.”

Since the number of smallholders is increasing, the state government would look into ways to help boost their productivity to be in line with national productivity, meaning it would be more rewarding for smallholders. Uggah also revealed the state government was studying a new model for NCR development.

“We will look at various options. The bottom line is we must make sure the landowners will be getting good returns from investment of their land. That is very important.These are the various areas we are looking at, and we hope to finalise this by the end of September this year.”

Also present was Deputy Minister of Plantation Industries and Commodities Datuk Datu Nasrun Datu Mansur.

 

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