Palm oil stands as the most significant contributor , accounting for over RM100 billion of this total . This sector not only generates substantial revenue but also sustains over 1.25 million jobs , including 550,000 smallholders across the country .

Johari emphasised the importance of the palm oil industry , which is a cornerstone of Malaysia ’ s export economy .

As the world ’ s second-largest palm oil exporter , Malaysia must

prioritise sustainability to maintain its competitive edge and avoid potential export bans related to environmental concerns .

“ This way , no country can block our oil palm export because we fully comply with environmental and international standards as well as labour regulations in our production processes ,” Johari stated .

To further bolster the industry , the ministry , through the Malaysian Palm Oil Board ( MPOB ), is focused on enhancing productivity . It includes using high-quality seeds , implementing best practices in plantation management , and utilising top-tier materials such as fertilisers .

These steps are seen as crucial to preventing a decline in the palm oil sector , similar to what has occurred in other commodity

industries like rubber and cocoa .

LEARNING FROM DECLINE

Malaysia , once a global leader in natural rubber production , now imports RM6 billion worth of rubber annually due to poor management and declining local production . Similarly , the cocoa industry , once a primary export sector , has shifted towards importing significant quantities .

Johari explained : “ Every year , the government has to import RM6 billion worth of natural rubber to be used by our rubber product manufacturers .”

The expansion of these industries and the subsequent need for large imports have adversely affected Malaysia ’ s currency . However , by enhancing agricultural practices and managing natural resources more efficiently , Johari

believes Malaysia can reduce imports , strengthen the currency , create employment opportunities , and increase government revenue .

The ministry ’ s collaboration with companies that import cocoa and other commodities has already started to yield positive results , with a notable increase in production value .

Johari ’ s vision for the future of Malaysia ’ s commodity sector is clear . By prioritising sustainability and productivity , the nation can secure its position as a global leader while ensuring long-term economic stability and growth .

THE BUDI MADANI and BUDI Agri-Commodities ( Plantation Sector ) Programme aims to encourage smallholders to participate in government programmes designed to improve their welfare and reduce their living costs .

Plantation and Commodities ( KPK ) Minister Datuk Seri Johari Abdul Ghani recently attended the initiative at the Agropolitan Multi-Purpose Hall in Gua Musang , Kelantan .

The event saw the participation of 500 smallholders , including those from the palm oil , rubber , kenaf , and cocoa sectors .

BUDI MADANI is a government initiative focused on ensuring that fuel subsidies are more accurately targeted towards qualified recipients . It includes subsidies for specific land transport vehicles and direct cash assistance for eligible individuals . The ministry , along with its agencies , has been actively conducting outreach programs to assist smallholders in understanding and registering for these benefits .

Previously , the ministry ’ s outreach efforts included events in Sungai Bakap , Penang , and at the

HEVEA Academy in Sungai Buloh , Selangor .

These programmes , conducted in collaboration with various agencies like the Malaysian Palm Oil Board ( MPOB ) and the Malaysian Rubber Board ( LGM ), provided essential information to smallholders about the BUDI Agri-Commodities initiative and assisted them in the registration process .

Despite these efforts , the application rate for the Budi Agri- Commodities assistance program needs to be higher , with only 16,000 out of 300,000 eligible smallholders having applied by mid-August .

Johari noted that many smallholders needed to be made aware of the programme or needed access to the necessary technology to register .

“ When the price of diesel increases , they are supposed to get subsidies , but they don ’ t know how to apply , they don ’ t have access , they don ’ t have computers , so we are going down to help ,” he explained .

The ministry has directed all its agencies to actively assist smallholders in entering their data into the online system , ensuring that

more smallholders can benefit from the monthly RM200 incentive .

Through this plan , KPK remains committed to ensuring that every

registered smallholder receives the appropriate benefits through the BUDI Agri-Commodities initiative . – @ AGROBiz