KUALA LUMPUR: The Federation of Chinese Associations Malaysia (Huazong) welcomes the government’s decision to allow the oil palm industry in the country to resume its critical estate and milling operations during the Movement Control Order (MCO) period, which has now been further extended until 28 April.
Its president, Tan Sri T.C Goh reckoned that such a move would continue to generate the much-needed foreign revenue for the country and to keep unemployment down.
He also welcomed the government’s downward revision of the oil palm export tax from the existing 5% to 4.5% next month amidst the dwindling global market demand due to the Covid-19 pandemic. He nonetheless believed the demand for oil palm will eventually rebound once the pandemic is under control
He noted that oil palm industry is one of the key economic sectors for the country, contributing to 5% of its Gross Domestic Product (GDP) and a quarter of the global oil palm production. The oil palm industry, right from the upstream to downstream, is also the ‘economic lifeline’ for millions of people who included plantation owners, smallholders, local and foreign workers, mill operators and suppliers of fertilizers and machineries.
“Hence, it is absolutely crucial for the government to ensure the stability and continuous growth of the oil palm industry,” he stressed in a statement issued today.
Goh who is also the president of The Federation of Chinese Associations Sabah (FCAS) also expressed his full support to the Sabah State government’s decision to allow oil palm industry in the state to resume operations, in line with the Federal government’s decision of the same.
He noted that Sabah is currently the largest oil palm producing state in the country covering 1.54 million hectares and contributed up to 25% of the national production of Crude Palm Oil, last year.
The oil palm industry was previously placed among sectors which were not allowed to operate during the MCO period when it was first announced by the government on March 18. However, two days later, the government decided to lift such a restriction after classifying it as an essential item. This was following a discussion between the Ministry of Primary Industries and the National Security Council (NSC). The Sabah state government subsequently announced on 10 April to allow the oil palm industry in the state to resume operations.
Meanwhile, Goh urged the oil palm industry players to strictly abide by the requirements and Standard Operating Procedure (SOP) set by the government and the Health Ministry, in order to ensure a safe and smooth operations.
He was also delighted to note the recent statement by Primary Industries and Commodities Minister Datuk Dr Mohd Khairuddin Aman Razali that, since the imposition of the MCO, no Covid-19 cases have been reported in the oil palm industry.
Goh also hoped that, besides the big plantations, the 650,000 oil palm smallholders in the country could strictly adhere to the SOP set by the relevant authorities.
“In Malaysia, about 14 million hectares are agriculture land, and out of this, about 52% are oil palm plantations. In 2018, our total Crude Palm Oil production was 20 million metric tons, with the export value of around RM80 billion, which made up 7% of the total national trade.
“The oil palm industry continues to be one of the key economic lifelines of our nation, hence the crucial need for the government to ensure its stability and steady growth, always,” he reiterated.-pr/BNN
