Revisiting Norway’s Decision to Cut Out Responsible Small Oil Palm Farmers

Recently, officials from Norway were in Malaysia. Given this, we wanted to revisit the ongoing actions by the Norwegian Government Pension Fund (GPFG) to divest from responsible oil palm development taking place in Malaysia.

The position of the Norwegian pension fund is unhelpful for small palm oil farmers in Malaysia, and sends a signal that Norway does not support oil palm as a means to create a sustainable, improved economic … Read More

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New Report Deals Further Blow to EU’s Unscientific ILUC Proposal

Blog post by Malaysian Palm Oil Council CEO Yusof Basiron:

The European Union’s proposal to introduce Indirect Land-Use Change (ILUC) into renewable energy policy has been criticized by scientists, politicians and business as unscientific and unworkable. It has also been suggested that ILUC would amount to a discriminatory trade barrier against better-value imports, such as palm oil from Malaysia.

A new academic report, released by the research consultancy Copenhagen Economics, … Read More

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Wildlife Policies

The Government of Malaysia has also been a long-time supporter of wildlife conservation, consistently passing legislation that ensures the protection of critical wildlife. As early as 1976, the Third Malaysia Plan established 15 conservation areas covering over 5,600 km². Conservation efforts have consistently increased since, with stronger regulations governing industries and a consistent focus on sustainable development.

The Government, and specifically the Department of Wildlife and National Parks, supports a … Read More

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The Orang-utan

The Sabah and Sarawak State governments have identified a number of forest areas known to contain higher populations of orang-utans as wildlife sanctuaries, national parks or forest preserves. Ulu Segama – Malua Forest Reserve in Sabah, spanning over 0.236 million hectare, has been shown to be inhabited by about 6,000 – 7,000 orang-utans, the most populated orang-utan area in Sabah. The Lanjak-Entimau Wildlife Sanctuary in Sarawak has been shown to … Read More

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History of the Industry

The palm oil industry in Malaysia has evolved dramatically since the first commercial planting took place in Tennamaran Estate in Selangor in 1917, laying the foundations for the industry in Malaysia. The cultivation of oil palm increased at a fast pace in early 1960s under the government’s agricultural diversification programme, which was introduced to reduce the country’s economic dependence on rubber and tin.

In the 1960s, the government introduced land … Read More

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Economic Contribution

The Malaysian palm oil industry is significant contributor to Malaysia’s overall economy, providing both employment and income from exports. In 2011, the sector was the fourth largest contributor to Malaysia’s economy, accounting for RM 53 billion (USD 16.8 billion) of Malaysia’s Gross National Income (GNI).

The Malaysian palm oil industry directly employs more than 600,000 people, including both high-skilled and low-skilled labor. Research and innovation are adding new jobs to … Read More
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History and Origin

The oil palm (Elaeis guineensis) originated from West Africa, where evidence of its use as a staple food crop dates as far back as 5,000 years. There is even evidence in Egyptian tombs of people being buried with casks of palm oil, reflecting the high societal value attributed to the product. Needless to say, with origins in West Africa and evidence of consumption in Egypt, palm oil can be considered … Read More

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Bio-energy

The palm oil industry is a critical source of energy, both for transportation as well as electricity generation. And it is not simply relying on palm oil to produce energy, but rather, on a number of by-products.

Palm Oil Mill Effluent (POME) of which more than 60 million tonnes is produced every year, is both a waste and a significant energy source. Through the implementation by methane capture, whereby POME … Read More

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The Sustainable Oil

Land Use Policy

Malaysia observes strict regulations governing expansion of oil palms, with agriculture expansion limited to land zoned for agriculture. 23.95 percent of Malaysia’s land bank is zoned for agriculture development. In contrast, more than 55 percent of Malaysia’s land is identified for permanent conservation. This balance ensures that Malaysia’s economic development does not come at the expense of the environment and the nation’s biodiversity. The oil palm’s high … Read More

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