ID :
147440
Tue, 10/26/2010 - 10:47
Auther :
Shortlink :
https://oananews.org//node/147440
The shortlink copeid
PALM OIL INDUSTRY TO CREATE US$18.6 BLN BUSINESS OPPORTUNITIES
KUALA LUMPUR, Oct 25 (Bernama) -- The Economic Transformation Programme (ETP)
roadmap will see the natural growth of Malaysia's palm oil industry to capture
three business opportunities worth RM57.6 billion (US$18.6 billion) by 2020.
The focus areas will be the expansion of existing upstream activities,
development of existing downstream activities and development of national
biodiesel activities, said the government.
Growth from the expansion of existing upstream activities will be driven by two
major factors, namely expansion of Malaysian plantations abroad and organic
growth in yield levels.
The government said organic growth in yield levels will be the key to drive
upstream developments.
Planting material will improve due to wider utilisation of quality clonal
material, hybrid seeds, bi-clonal and semi-clonal seeds and better crop recovery
through marginal improvement in collecting practices.
As a result, plantations and organised smallholders will gradually increase
their productivity.
"Due to the scarcity of arable land, Malaysian companies are expected to invest
more aggressively in plantations abroad," said the government.
By 2020, Malaysian plantations will have an additional two million hectares in
Indonesia, other parts of Southeast Asia and Western Africa which will translate
into an additional Gross National Income (GNI) contribution of RM17.6 billion by
2020. (US$1=RM3.09)
This will require a total private investment of RM17.6 billion over the next 10
years, it said.
On downstream activities, the government said, growth in the non-food segment
will be driven by the expansion of basic oleochemicals.
"The food segment, though much smaller, will expand due to rising consumer
demand for package foods," it added.
To achieve this, it requires RM46.9 billion funding which will come entirely
from the private sector.
As for the development of national bio-diesel activities which will further
bolster Malaysia's commitment to reduce greenhouse gas emissions in the country,
the business opportunity will translate into an additional GNI of RM1.6 billion by 2020 and create an additional 2,100 jobs.
roadmap will see the natural growth of Malaysia's palm oil industry to capture
three business opportunities worth RM57.6 billion (US$18.6 billion) by 2020.
The focus areas will be the expansion of existing upstream activities,
development of existing downstream activities and development of national
biodiesel activities, said the government.
Growth from the expansion of existing upstream activities will be driven by two
major factors, namely expansion of Malaysian plantations abroad and organic
growth in yield levels.
The government said organic growth in yield levels will be the key to drive
upstream developments.
Planting material will improve due to wider utilisation of quality clonal
material, hybrid seeds, bi-clonal and semi-clonal seeds and better crop recovery
through marginal improvement in collecting practices.
As a result, plantations and organised smallholders will gradually increase
their productivity.
"Due to the scarcity of arable land, Malaysian companies are expected to invest
more aggressively in plantations abroad," said the government.
By 2020, Malaysian plantations will have an additional two million hectares in
Indonesia, other parts of Southeast Asia and Western Africa which will translate
into an additional Gross National Income (GNI) contribution of RM17.6 billion by
2020. (US$1=RM3.09)
This will require a total private investment of RM17.6 billion over the next 10
years, it said.
On downstream activities, the government said, growth in the non-food segment
will be driven by the expansion of basic oleochemicals.
"The food segment, though much smaller, will expand due to rising consumer
demand for package foods," it added.
To achieve this, it requires RM46.9 billion funding which will come entirely
from the private sector.
As for the development of national bio-diesel activities which will further
bolster Malaysia's commitment to reduce greenhouse gas emissions in the country,
the business opportunity will translate into an additional GNI of RM1.6 billion by 2020 and create an additional 2,100 jobs.
