“ ….The palm oil industry is a strategic industry which last year contributed about RM70 billion in export earnings providing employment and other multiplier effects to the economy. By 2020, the targeted GNI for the sector is about RM178 billion and 95% of RM125 billion investment requirement is expected from the private sector. A challenging expectation indeed.Thus, in a manner of speaking we are indeed a “goose that lay the golden eggs” and the goose has to remain healthy and productive and thus, it needs care, good food and a healthy environment to continue to perform and deliver ‘well’.
MPOA has submitted a memorandum to the Government on some of these topics including the Windfall Profit Levy, the Sales Tax and the Property Assessment Tax, the Cooking Oil Subsidiary Scheme (COSS), Labour Shortage, R&D Assistance and the Sustainability and Sustainable Palm Oil (SPO) issues. These are necessary to defend and ensure the palm oil industry of Malaysia to be competitive and of high productivity.
We hope the engagement between MPOA and the authorities and stakeholders will continue and some of these topics will come to some helpful conclusions for the industry especially on labour and the windfall tax since we are the most taxed industry at effectively at about 46%. Labor issue is critical to sustain our competitiveness via productivity. And tax support will release maximum funds for reinvestment into value add and efficiency….”
SPEECH BY
Y.BHG. DATO. ABD WAHAB MASKAN, CHAIRMAN OF MPOA
AT THE MALAYSIA PALM OIL ASSOCIATION DINNER 2011
ON 10TH OCTOBER 2011 AT GRAND DORSETT, SUBANG JAYA.
YAB Tan Sri Dato’ Hj Muhyiddin Bin Hj. Mohd Yassin, Deputy Prime Minister of Malaysia
Y.B. Dato’ Hamzah Zainuddin, Deputy Minister of Plantation Industries & Commodities
Y.B. Datuk Seri Utama Shahrir Abdul Samad, Chairman of Malaysian Palm Oil Board
YBhg Dato’ Lee Yeow Chor,Chairman of Malaysian Palm Oil Council
Y.Bhg Tan Sri-Tan Sri, Puan Sri-Puan Sri, Dato’-Dato’ & Datin-Datin
Tuan-Tuan & Puan-Puan yang dihormati sekalian,
Salam Sejahtera dan Salam Satu Malaysia
Yang Amat Berhormat, izinkan saya memberi ucapan alu-aluan ini dalam Bahasa Inggeris.
Tonight is a special night for the Malaysian Palm Oil Association or MPOA. As MPOA, we are indeed highly honoured by the presence of our highly respected YAB Deputy Prime Minister of Malaysia, YAB Tan Sri Dato’ Hj. Muhyiddin bin Hj. Mohd Yassin, who had kindly accepted our invitation to attend this appreciative and MPOA award recognition dinner event despite his very busy schedule and at the same time consented to give away the award of recognition to four excellent individuals who had contributed significantly to our plantation (Palm Oil) industry to date. We also extend our appreciation to YB Dato’ Hamzah Zainuddin, the Deputy Minister of Plantation Industries and Commodities for his presence tonight.
MPOA is, I believe, the premier body that represents the plantation industry in Malaysia. It is perhaps the oldest and most matured industry in the country. There are empirical to support this, but at welcome address, it is suffice to emphasize and to say that the members of the MPOA had contributed significantly, progressively and sustainably to the building of Malaysia as a nation and the Malaysian economy to what it is today. And it will continue to do so in future.
The palm oil industry is a strategic industry which last year contributed about RM70 billion in export earnings providing employment and other multiplier effects to the economy. Moving forward, the New Economy Model (NEM), the Economic Transformation Programme (ETP) and the specific role of the palm oil sector as one of the National Key Economic Areas (NKEAs), challenges the industry and thus the MPOA members to another level, a higher level in national economic development and nation building. By 2020, the targeted GNI for the sector is about RM178 billion and 95% of RM125 billion investment requirement is expected from the private sector. A challenging expectation indeed.
Thus, in a manner of speaking we are indeed a “goose that lay the golden eggs and the goose has to remain healthy and productive and thus, it needs care, good food and a healthy environment to continue to perform and deliver ‘well’.”
MPOA through working closely together Malaysian palm oil players, is able to bring together Malaysian Estate Owners Association (MEOA), East Malaysia Planter’s Association (EMPA) and Sarawak Oil Palm Plantation Owners Association (SOPPOA) to a common platform to engage in common issues on palm oil industry. We are very appreciative of this collaboration, thank you. As an aggregated association our principal role is to ensure that the interest of our members being looked after and at the same time to harmonise and balance our role as a responsible corporate citizen to stake holders including the government. MPOA has been very positive and supportive of government and market positioning initiatives. It has participated actively in public and private sector engagements and platforms to bring the aspirations of the industry and the country to the best and most appropriate level domestically and internationally.
To sustain a healthy industry, MPOA has its wish list. We are grateful to the Government for having been responsive to some of our concerns and plight. Similarly, MPOA through its members and the industry has also responded to some of the critical calls by the Government for example, on the improvement of the health and housing condition of workers and their wages and disposable income.
Moving forward, the MPOA and the industry has a list of topics that we can contribute and similarly a list of topics that we can search for greater support from the Government and other stakeholders to keep the industry conducive and able to sustain market competitiveness and business productivity and viability in the increasingly challenging domestic and global landscape. Some of these are critical to meet the aspirations and objectives of the NEM, ETP, and NKRAs and the aspiration of our members.
MPOA together with the MEOA, EMPA and SOPPOA has submitted a memorandum to the Government on some of these topics including the Windfall Profit levy, the Sales Tax and the Property Assessment Tax, the Cooking Oil Subsidiary Scheme (COSS), Labour Shortage, R&D Assistance and the Sustainability and Sustainable Palm Oil (SPO) issues. These are necessary to defend and ensure the palm oil industry of Malaysia to be competitive and of high productivity.
We hope the engagement between MPOA and the authorities and stakeholders will continue and some of these topics will come to some helpful conclusions for the industry especially on labour and the windfall tax since we are the most taxed industry at effectively at about 46%. Labour issue is critical to sustain our competitiveness via productivity. And tax support will release maximum funds for reinvestment into value add and efficiency.
We understand and appreciate that YAB Tan Sri has been concerned on issue of labour. On labour, we hope the government will be more flexible on this.
Equally we believe YAB Tan Sri is also concerned on the bilateral relations amongst ASEAN countries especially Malaysia and Indonesia. This is also relevant to us because these ‘two countries’ produce nearly 90% of world’s palm oil and in a way to be seen as friendly “co-producers”.
In this context, MPOA has been constructive. It has developed a cordial Business–to-Business networking and relationship with some of the ASEAN countries producers such as Indonesia and Thailand. For Malaysia and Indonesia, one of the platforms is the Indonesia Malaysia Palm Oil Group (IMPOG). It is made up of 6 associations from both countries which were established in 2010 in Jakarta attended by the respective Ministers of both countries. MPOA is a member of his grouping. Malaysia chairs this grouping till 2012. It plays its role in constructive support to bilateral relationship between the two countries via harmonizing the interest of both producers at international challenge like the Sustainable Palm Oil and Roundtable of Sustainable Palm Oil (RSPO). It also participated in the engagement between the two countries to promote palm oil and sustainable palm oil in other consuming countries.
I would like to conclude that the palm oil industry and MPOA are of strategic value to the country and we are a strategic partner to the government and the public sector in industry matter. We hope that the stakeholders view us in that perspective and continue to support us in the future. This dinner is definitely not enough to show our appreciation to all of you who have had assisted us and the palm oil industry to date. My congratulation also goes to the 4 individuals who won MPOA Recognition Awards tonight.
With that I once again would like to humbly thanked YAB DPM Tan Sri for being here tonight. Also to YB Deputy Minister and to all our honoured guests.
My thank you and appreciation to my fellow members of the MPOA Council, the various Main and Working Committees chairmen and members. Thank you to Dato’ Mamat Salleh, the CEO of MPOA and his dedicated team at the Secretariat and thank you to all of you who are here tonight. Have a good evening and enjoy your dinner.
