KUCHING: The Malaysian Palm Oil Board (MPOB) has spent approximately RM50 million on various research and development (R&D) projects in Sarawak.
Deputy Minister of Plantation Industries and Commodities Datuk Willie Mongin said the R&D projects were implemented to enhance the development of the palm oil industry in the state.
He revealed that the implementation of R&D projects involved a series of Malaysia Plans.
He said this during the “Program Malaysia Prihatin” and a dialogue session with palm oil industry players as well as MPOB licensees at Kuching South City Council (MBKS) auditorium yesterday (Mar 29).
“The implementation of the R&D projects involves the Malaysia Plans from the 7th to the 11th Plans.
“Of that amount, RM14.09 million was for the development of MPOB research stations in Sessang and Belaga.
“The two stations focus on agronomic studies of oil palm cultivation on peatlands, research grants on greenhouse gas emissions as well as crop-livestock-oil palm integration projects.
“A total of RM35 million is being spent on R&D projects which include microbial biodiversity studies, insect species composition, socio-economic impact on local communities in Belaga and palm oil-related downstream strategies for Sarawak,” he explained.
Willie added that the government used the palm oil cess collection to partly cover the cost of palm-oil related R&D projects in the country.
On the implementation of the new cess rate, Willie said the increase was in line with the rise in the price of crude palm oil.
“The price of crude palm oil surged to RM4,247.50 per tonne on March 15 this year, an all-time high in the history of the country’s palm oil industry.
“This is expected to strengthen due to declining stocks, increased exports and strengthening soybean oil prices in the global market.
“The government has agreed with the industry’s request to channel additional cess collection of RM30 million to the Mechanism and Automation Research Consortium of Oil Palm (Marcop).
“This will complement the RM30 million allocation by the government through matching grants for the development of mechanisation and automation as announced in the 2021 Budget,” said Willie.
