04 Local News
Matoa , a growing popularity
04 Local News
@ AGROBiz | July-August . 2024
FGV ’ s remediation efforts
FGV Holdings Berhad ( FGV ) has formally requested the United States Customs and Border Protection ( CBP ) to amend the Withhold Release Order ( WRO ), which has affected its palm oil and related products since September 2020 . This petition , filed on June 30 , 2024 , comes after FGV implemented significant measures to enhance labour rights and worker welfare throughout its operations .
To address labour standards and ethical concerns , FGV appointed LRQA ( formerly known as Elevate ), a business consulting company , to independently assess its compliance with the International Labour Organisation ( ILO ) indicators of Forced Labour . The company also engaged Crowell & Moring ’ s legal expertise to navigate the requirements of US and international laws .
Moreover , FGV has undertaken a comprehensive remediation plan , emphasising bringing its labour
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practices in line with worldwide ethical norms . This plan reimburses migrant workers ’ recruitment fees , for which RM112 million has been earmarked .
To date , RM85.29 million has been spent to repay 22,600 employees .
A significant part of the remediation strategy involved upgrading infrastructure and housing for workers . From 2018 to 2023 , FGV invested RM487 million in these upgrades and plans to spend an additional RM605 million from 2024 to 2026 . These improvements also covered enhancing internet connectivity in remote areas through satellite facilities .
Additionally , FGV has enhanced its recruitment procedures for migrant labourers by conducting a more thorough process in selecting recruitment agencies . The organisation has strengthened its grievance mechanisms by implementing policy changes , establishing a Griev-
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ance Management Committee , and launching the Suara Kami grievance channel , which is accessible to all employees .
Furthermore , FGV is actively promoting workers ’ rights to freedom of association , collaborating with the National Union of Plantation Workers ( NUPW ) to support union membership .
The petition to CBP highlights FGV ’ s dedication to tackling the 11 ILO Indicators of Forced Labour .
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By implementing these extensive improvements , FGV strives to elevate the WRO and establish a new standard for ethical labour practices in the palm oil industry .
The company is confident that its proactive measures will result in a positive outcome , enabling its sustainably produced palm oil to regain access to the US market and further solidifying its reputation as a pioneer in ethical agricultural practices .
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Sabah : Future of Tocotrienol production
SABAH is set to make a significant leap in the palm oil industry by constructing Malaysia ’ s first facility to produce tocotrienols from refined palm oil by-products in Kunak . This new plant , a Kunak Refinery Sdn Bhd venture under Sawit Kinabalu , represents a critical sector investment by the Sabah state government .
Tocotrienols , a robust variant of Vitamin E , are highly valued for their exceptional antioxidant capabilities and other health advantages , such as reducing cholesterol levels and battling cancer , stroke , and the ageing process .
These chemicals are highly sought after by cosmetics and supplement manufacturers .
The primary objective of the new factory is to convert processed by-products of palm oil into highly valuable tocotrienols .
Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe recently reviewed the progress made by the construction company . It is currently 60 per cent complete and expected to be finished by mid-2025 .
During his visit , Phoong and his team also toured the palm oil refinery to gain further insights into the industry ’ s processes .
Phoong underscored the Sabah government ’ s dedication to devel- oping the downstream palm oil industry , which extends beyond the exportation of crude oil and unprocessed products .
This is consistent with the Sawit Kinabalu Group ’ s objective to improve the palm oil value chain , encompassing upstream cultivation and downstream products such as vitamin supplements .
Moreover , Sabah ’ s economic expansion is considered contingent upon industrialisation .
“ The downstream industry of tocotrienols presents a significant opportunity for Sabah . By transforming refined palm oil by-products into high-value products , we will have excellent export conditions in the future .
“ Especially since last year , under the promotion of Deputy Prime Minister II Datuk Seri
Kunak Refinery management introducing Sayang cooking oil to Phoong Jin Zhe .
Fadillah Yusof , China approved the import and application of tocotrienols , highlighting the enormous potential for Sabah ’ s industrial development ,” Phoong added .
In a related development , the Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin , witnessed the signing of a memorandum of understanding between Kunak Lipids Sdn Bhd and Shanghai Boce Trade Service Company last month . This partnership aimed to cater to China ’ s growing demand for refined palm oil by-products .
The Sawit Kinabalu team also interacted with potential distributors and manufacturers , including those in the cosmetics business , who showed significant interest in tocotrienols and other phytonutrients from palm oil .
Matoa , a growing popularity
Prof Aziz Romli , 66 , shows the matoa fruit he planted .
THE demand for cultivating matoa fruit is increasing due to its potential for high profitability , as observed by Professor Aziz Romli , a retired Universiti Utara Malaysia ( UUM ) professor and a small-scale farmer from Kedah .
Over the past decade , Aziz has transformed his three-hectare property in Kampung Kubang Menerong , Padang Sera , from a rubber plantation into a thriving matoa orchard .
Starting with just six trees , Aziz now reaps the rewards of his labour as the demand for matoa fruits , known for their highly desirable flavour profile — a fusion of lychee , rambutan , and durian , continues to soar .
Aziz mentioned : “ The trees started to flower when they were three years old , and if I knew it would be a ‘ hit ’, I would have planted hundreds of them on my three-hectare property .”