KUALA LUMPUR (April 14): The palm oil industry is an important economic enabler that has benefited around four million people in Malaysia, providing employment and income to poor communities and contributing to the livelihood and multiplier effect in the economy.

This is an important fact that Plantations Minister Datuk Seri Mah Siew Keong wants to address globally.

Keong, who is the Minister of Plantations Industries and Commodities has expressed his disappointment on the proposed Resolution on Palm Oil and Deforestation of Rainforests by the European Parliament which claims amongst others, that oil palm cultivation is one of the main drivers of deforestation and climate change.

It has been expressed that the adoption of the proposed resolution would have negative repercussions on the palm oil trade. The Minister had recently attended the Fourth Ministerial Meeting of the Council of Palm Oil Producing Countries in Jakarta, Indonesia which discussed the proposed resolution.

Also present was Indonesia’s Coordinating Minister for Economic Affairs, Darmin Nasution, who expressed his concern on the matter.

It is alleged that the resolution also does not reflect the stated commitment by the European Union towards meeting the Sustainable Development Goals in addressing poverty and raising income levels.

“The palm oil industry has contributed enormously in the rural development of both countries. This industry has benefited over two million smallholders in Indonesia and 600,000 smallholders in Malaysia.

“Any measure aimed at restricting the development of the palm oil industry does not reflect the commitment by the global community towards ensuring sustainable development.

The Ministers noted that the global oil palm cultivation which currently stands at 18.12 million hectares, is significantly lower in acreage compared to other vegetable oils such as soybean, rapeseed and sunflower seed which collectively stand at 180.29 million hectares.

In addition, the annual productivity of oil palm at four tonnes per hectare is significantly higher compared to soybean at 0.4 tonnes per hectare, rapeseed at 0.7 tonnes per hectare and sunflower seed at 0.6 tonnes per hectare.

Both countries will work together with other palm oil producing countries in addressing this issue with the European Union. This is aimed at ensuring that whatever measures adopted by European Union factors in the approach by Indonesia and Malaysia towards ensuring sustainable palm oil.