Malaysian Palm Oil
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Area planted is miniscule. 5.81 million hectares are planted with oil palm, which accounts for only 0.11% of the total global agricultural area. New area planted with oil palm in Malaysia has plateaued in recent years and will remain as such.

Supports the livelihood of smallholders and many others. 40% of the 5.81 million hectares is managed by 650,000 smallholders with each of them owning 3.9 hectares on average and earning about €430 per month. Another 1.5 million people are employed throughout the palm oil supply chain. In all, the palm oil industry provides employment for about 15 % the national labour force.


Least land use yet produces the highest yield. Oil palm’s average yield of 4 tonnes of oil per hectare per year is 4.3 times higher than rapeseed, 5.4 times higher than sunflower and 10 times higher than soybean. Therefore, to meet the rising demand for oils and fats over the next decade, it is estimated that there is a need to harvest an additional 58 million hectares of land for rapeseed or 49 million hectares for sunflower, compared to a mere 8.8 million hectares if it was provided by palm oil. Thus, the Indirect Land Use Change (ILUC) arguments by the EU is an injustice to the food (oils and fats) security needs of many developing nations.


Efficient Carbon Sink. An oil palm plantation is an efficient carbon sink assisting to sequestrate carbon and absorb greenhouse gases.


Qualifies in terms of GHG Savings. Malaysian palm biodiesel has a greenhouse emission reduction savings that is higher than the EU Renewable Energy Directive threshold of 35% savings. For example GHG savings from palm biodiesel in transportation is between 38.5-41% (as reported by the Friedrich Schiller University and Max Planck Institute).


Highly regulated. The industry is governed by more than 60 national laws and regulations including the Land Acquisition Act 1960, National Land Code 1965, Environmental Land Conservation Act 1960 revised in 1989, Quality Act 1974, Pesticides Rules 1988, Occupational Safety and Health Act 1977, Labour Law and Wildlife Conservation Act 2010.


Malaysia is committed to sustainably produced palm oil. While 1.15 million hectares are already RSPO certified, Malaysian Sustainable Palm Oil (MSPO) certification will be made mandatory by December 2019. MSPO addresses the environmental, social and economic aspects of palm oil production cultivation and processing methods, protecting forests and wildlife, safeguarding workers welfare and safety and providing a living wage. Malaysian palm oil biofuel exporters also meet the strict standards of sustainability required by European consumers including being certified by the German ISCC.


Malaysia is a strong advocate of the environment and natural habitat. Malaysia continues to maintain 54.9% of its land area under forest cover, which exceeds Malaysia’s commitment of 50% at the Rio Earth Summit in 1992. This is far higher than forest cover in most large European Countries including France, Germany, Italy and the United Kingdom.


Malaysia has delivered on its commitment to COP21 on climate change. Malaysia voluntarily agreed to cut the GHG emission intensity by 45% by 2030 relative to the emissions intensity of GDP in 2005 as part of its commitment to COP21 and it has so far reduced it by 33%. For example in 2014, Malaysia’s net carbon dioxide removals were 1.7 times and 3.5 times higher than that of France and Germany respectively.


Palm oil is an affordable food commodity prized for its functionality, versatility and balanced composition. It is proven ideal for home use as well as food manufacturing. Being basically neutral towards blood cholesterol in humans, it is also rich in vitamin E tocotrienols that are potent antioxidants.


Malaysian Palm Oil industry is proactive in wildlife conservation efforts through Malaysian Palm Oil Wildlife Conservation Fund (MPOWCF), which has funded landmark projects such as, the Borneo elephant sanctuary, orang utan aerial survey and the Wildlife Rescue Unit in Sabah.


Malaysian Palm Oil Industry adopts the good agriculture practices (GAP) which include zero burning and integrated pest management.


Malaysian Palm Oil Industry is committed towards the zero waste objective. It is able to utilise its biomass & co-products to produce renewable energy including biofuels.


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