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Long Term Palm Oil Yield Sustainability from Best Regulation Implementation

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PETALING JAYA and SELANGOR, Malaysia, May 29, 2014 /PRNewswire/ — A long-term economic sustainability of any crop yield system relies on simple and best developed practices or regulation implementation.

As such, an efficient regulation system continues to be an increasing challenge for the local palm oil industry while protecting the environment, as unnecessary and duplicate regulatory burden imposes superfluous costs to business and industry.

Malaysia, the world’s second-largest palm oil producer and leading exporter, has an important role to play as it provides well for the growing demand for food and energy, while promoting economic and social development.

The local palm oil sector, being the fourth major contributor to national revenue has a total of 5.1 million hectares planted with oil palm, with 75 per cent of the plantations is privately owned, growing and harvesting oil palm is labour intensive.

However, the commodity being traded in the global oils and fats market, faces pressure exerted by many quarters over the environmental and social impacts arising from business operations.

Thus, the local industry being the world’s second largest producer, faces sustainable practice challenges in palm oil production.

Meanwhile, growers face unnecessary regulatory burden as the upstream industry is highly regulated at the federal, state and local government levels, on matters such as environment, land access, occupational safety and health, labour, as well as local government planning, construction, property taxes and licensing.

Malaysia Productivity Corporation (MPC), recognising the unnecessary regulatory burdens faced by the local upstream segment players and potential solutions to reduce the unnecessary practices, has recently released a report titled “Reducing Unnecessary Regulatory Burdens on Business: Growing Oil Palm”, drawn on the expertise and perspectives of public and private sector stakeholders.

The report concluded overlapping regulations and poor administration are the main source of unnecessary regulatory burdens in the local palm oil industry, mainly the upstream.

Among highlighted unnecessary burdens in the report were related to workforce, taxation, foreign worker recruitment, workers housing and amenities, estate hospital attendants, and goods driving licences for foreign employees, as well as costs due to delays in obtaining approvals.

“We seek feedback from all interested parties on the accuracy of the report and the recommendations, as well as commitment from the public and private sectors, to create a strong basis to achieve consensus on removing unnecessary compliance costs and enhance regulatory consistency in the upstream segment of the palm oil industry,” MPC Director General Dato’ Mohd Razali Hussain said.

MPC is mandated to spearhead a comprehensive review of all regulations affecting the business conduct in Malaysia.

Kindly provide comment/feedback on Reducing Unnecessary Regulatory Burdens on Business (RURB) at For further enquiries, please contact Mr. Zahid Ismail at +603-79557266 / +603-79600173 or email

About the Malaysia Productivity Corporation (MPC)

Malaysia Productivity Corporation (MPC), a statutory body under the Ministry of International Trade and Industry (MITI) to promote productivity, quality and competitiveness to the local industries, aspires to be the leading organisation in productivity enhancement for global competitiveness and innovation.
Source: Malaysia Productivity Corporation (MPC)

Written by asiafreshnews

May 31, 2014 at 11:12 pm

Posted in Uncategorized

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