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MALAYSIAN PALM OIL
AND CONSERVATION
EFFORTS
23rd May 2012
Dato’ Seri Utama Shahrir Abdul Samad
Malaysian Palm Oil Board
European Association of Zoos and Aquaria, 2012
PRESENTATION OUTLINE
1. Malaysia: An Introduction
2. Importance of Palm Oil to Malaysia
3. Malaysia’s Economic Transformation
4. Conservation Efforts in Malaysia
4. Conclusion
Malaysia: Facts & Figures
• Area: 329,847 km 2
• Population: 29.2 Million (July 2012 est)
• Per Capita Income: US$ 8,937 / EU 6,980 (2011)
• GDP: 5.2% (2011)
Source: Economic Report 2010/2011, Ministry of Finance Malaysia
Malaysia: GDP by Sectors
Gross Domestic
Product
Value
( RM Mil)
Share
( %)
Agriculture 43,238 7.1%
Mining &
Quarrying
41, 835 6.9%
Manufacturing 164,107 27.1%
Construction 18,975 3.1%
Services 336,609 55.6%
TOTAL 604,764 100%
Malaysia: Top 10 Major Export
Products, 2011
Source: http://www.matrade.gov.my
RANKING:
1. Electrical &
Electronic
Products
2. Crude &
Refined
Petroleum
Products
3. LNG
4. Palm Oil &
Palm Oil
Products
Global Producers of Palm Oil (000 tonnes)
Countries 2009 2010 2011
Indonesia* 20,900 22,000 23,900
Malaysia* 17,566 16,993 18,880
Thailand* 1,310 1,450 1,530
Nigeria 860 885 900
Colombia 765 750 965
Ecuador 448 360 460
Others 3,260 3,180 3,494
Total 45,108 45,618 50,129
Source: Oil World Dec 2011, January-December 2011 Total Production
*South East Asia (2010)
47.7%
37.7% 88.4%
3.05%
Oil Palm –
the most
productive
oil crop
Oil Crop Production
(million t)
% of total
production
Total area
(million ha)
% of total Area
Oil palm
(PO + PKO)
50.85 39.0 13.44 2.9
Soya bean 41.48 32.2 104.2 59.4
Rapeseed 23.66 18.4 33.09 18.9
Sunflower 13.18 10.25 24.55 14.0
Source: Oil World 2011
* Combined tonnage of palm
oil and palm kernel oil
Avg. Oil Yield (t/ha/yr)
Average Oil Yield for Major Crops
Source: Oil World 2011
Total Planted Area of Oil Palm in Malaysia
(million hectare)
Source: Malaysian Palm Oil Board
Government halted new forest land conversion for agriculture, including oil palm
Land Use Change
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
1990 2000 2002 2004 2006 2007 2008 2009 2010 2011
Million Ha
Government halted new forest land conversion for agriculture, including oil palm
Land Use Change
Area
(1 mil ha)
Year
1990 2010
Oil Palm 2.029 4.854
Rubber 1.836 1.029
Coconut 0.313 0.11
Cocoa 0.393 0.020
Malaysian:Total Area Under
Selected Crops
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Oil
Pa
lm
Ru
bb
er
Co
co
nu
t
Co
co
a
Crop
Are
at
1990
2010
MILL
HOUSING
NURSERY
FOREST
RESERVE
SCHOOL &
KINDERGARTEN
SPORTS
COMPLEX
REPLANTS
CLINIC
CRECHE OIL PALMS
Desa Talisai Estate, Sandakan, Sabah – IJM Plantations Bhd
TRAINING
FACILITY
From Cocoa to Oil Palm
Total Hectarage: 4.854 mil hectares (2010)
FELDA 16%
Private Estate 60%
RISDA 2%
FELCRA 4%
State Schemes 7%
Smallholders 11%
Private Estate FELDA FELCRA RISDA State Schemes Smallholders
MALAYSIA
Smallholder Farms: ~40% of Oil Palm hectarage
15
Oil Palm & Household Incomes
Source:
1 Maklumat Asas Felda 2009 (published)
2 MPOB Data
3 Economic Planning Unit (EPU), Tenth Malaysia Plan and Mid-Term Review of the Ninth Malaysia Plan
Note: *PGK for Peninsular Malaysia
Year Felda Settler1 Independent
Smallholder2
National Poverty
Line (PGK)3
2006 RM 1,338
~ US$ 429 RM 476
~ US$ 153
RM 526
~ US$ 169
2007 RM 2,221
~ US$ 712 RM 1,209
~ US$ 388
RM 740
~ US$ 237
2008 RM 3,278
~ US$ 1,051 RM 1,094
~ US$ 351
RM 691
~ US$ 221
2009 RM 2,457
~ US$ 788 RM 944
~ US$ 303
RM 666
~ US$ 213
2010 RM 3,000
~ US$ 962
RM1,259
~ US$ 404
RM 720
~ US$ 231
Oil Palm & Its Importance to Malaysia
• The livelihood of 1.5 million people is dependent on the palm oil industry
• Raised rural incomes above the national poverty line.
Narrowing income gap between urban and rural,
Improving quality of life for rural population,
• Important export revenue for Malaysia ( 4th largest export by value)
• Palm oil downstream sector provides new growth opportunities for green energy, oleo derivatives, food & health based segments
The New Economic Model has identified the right
framework to drive Malaysia to achieve high
income nation…
High
Income
Sustainability Inclusiveness
Meets present
needs without
compromising
future generations
Target USD
15,000-20,000 per
capita by 2020
Enables all
community
benefits from the
wealth of the
country
Palm Oil National Key Economic Areas (NKEA): 8
Entry Point Projects (EPPs)
(USD11.03 billion) (USD4.67 billion)
Malaysia’s Economic Transformation Programme
(2010-2020)
Land Matters:
• National Land Code 1965
• Land Acquisition Act 1960
Environmental Matters:
• Environmental Land
Conservation Act 1960 revised in
1989
• Quality Act 1974 (Environmental
Quality) (Prescribed Premises)
(Crude Palm Oil) Regulation 1977
• Environmental Quality (Clean Air)
Regulation 1978
• Environmental Quality
(Prescribed Activities)
(Environmental Impact
Assessment) Order 1987
Labour and Employees Matters:
• Labor Law
• Workers’ Minimum Standard of Housing & Amenities Act 1990
• Occupational Safety & Health Act 1977
• Factories & Machinery (Noise Exposure) Regulations 1989
Pesticide Use:
• Pesticides Act 1974 (Pesticides Registration) Rules 1988
• Pesticides (Licensing for sale & storage) Rules 1988
• Pesticides (Labeling) Regulations 1984
Wildlife Matters:
• Protection of Wildlife Act 1972
MPOB licenses all critical activities of the Malaysian Palm Oil Sector and
enforces its orderly conduct
A Highly Regulated Industry
MPOB’s Codes of Practice
1. Code of Good Nursery Practice for the Oil Palm Nurseries (Mandatory from June 2012)
2. Code of Good Agricultural Practice for the Oil
Palm Estates and Small Holdings
3. Code of Good Milling Practice for Palm Oil
Mills
4. Code of Good Refining Practice for Palm Oil
5. Code of Good Crushing Practice for Palm
Kernel Crushers
6. Code of Good Practice for the Handling,
Transport and Storage of Products from the
Oil Palm
7. Code of Good Practice for Bulking Facilities
MPOB’s Codes of Practice for the Oil Palm
Supply Chain
Malaysian Palm Oil Wildlife
Conservation Fund (MPOWCF)
• Launched in 2006
• RM20,000,000
– RM10 million from the
Malaysian palm oil industry
– RM10 million as grant from the
Malaysian Government
• MPOWCF welcomes donations
& grants
• Matches third party funding on
a 1:1 basis
Government-Industry
Collaboration
Malaysian Palm Oil Wildlife Conservation Fund
(MPOWCF)
List of MPOWCF Programmes Since 2007
No. Project Status
1 Establishment of a Jungle Patrol to protect wildlife in forest reserves
bordering OP Plantations
Completed
2 Tabin Wildlife Reserve Completed
3 Diversity of Ground Vegetation in OP Plantations Completed
4 Orang Utan Island Infant Care Unit (Bukit Merah, Perak) Completed
5 Biodiversity conservation study on ox-bow lakes in OP Plantations Completed
6 Survey of orang utan population in Sabah Completed
7 Orang Utan Conservation Colloquium 2009 On-going
No. Project Status
8 Satellite-tracking, population dynamics, ecology and conservation of
Bornean Banteng in Sabah
On-going
9 Establishment and operation of the Sabah Wildlife Rescue Centre
(WRC)
On-going
10 Wild Asia-Biodiversity for Plantation Managers On-going
11 Malua Biobank Joint Conservation Efforts On-going
12 Borneo Elephant Sanctuary, Sabah On-going
13 Sarawak Orang Utan Conservation Programme On-going
14 Borneo Elephant Wildlife Sanctuary (BEWS) Up-coming
Sabah Wildlife Conservation Colloquium January 2012
Jointly Organised by Sabah Wildlife Department (SWD), Malaysian Palm
Oil Council (MPOC), Borneo Conservation Trust,
Danau Girang Field Centre & HUTAN
Government-Industry-NGO
Collaboration
Distribution of Orang
Utan Population in
Borneo
The most recent estimates
place the population at about
11,000 individuals in Sabah
(Ancrenaz et al. 2005, Alfred et
al, 2010)
Lower Kinabatangan-Segama Wetlands Intertidal forested wetlands, Forested peatlands, Non-forested
peatlands
Ramsar Site: 1849, Designated: 28 October 2008, Total Area: 78,803 ha
PROGRAMME GOALS:
1. To establish a transparent platform to ensure consultation could be carried out among local government, local community and oil palm developers
2. To establish support system in land acquisition through ground truthing to assess status of biodiversity and wildlife corridor to secure biodiversity corridor
3. To develop funding mechanism in order to support restoration programme of riparian reserve and other wildlife corridor, including monitoring
4. To develop and integrate the management plan to re-establish ecological corridor enforcement programme
Estimated (Private Land): 4,038.72 Acres
Estimated Total Cost for Land Compensation: RM 48,464, 628
(USD 15,960,687.63 )
The Future
• Malaysia’s New Economic Model balances higher
income with inclusiveness and sustainability
• Malaysia’s ETP seeks to maintain palm oil’s importance
in its economic and social development
• Conservation is integral to sustainability
• Opportunity for in-situ conservation
• Collaboration of all stakeholders to turn opportunity into
reality- the creation of the Kinabatangan Biodiversity
Corridor!