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ACTION PLAN ON NATIONAL AGRICOMMODITY POLICY

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Published by bpm.mpic, 2022-03-04 04:27:46

ACTION PLAN ON NATIONAL AGRICOMMODITY POLICY

ACTION PLAN ON NATIONAL AGRICOMMODITY POLICY

Keywords: DAKN

MINISTRY OF PLANTATION INDUSTRIES
AND COMMODITIES

ACTION PLAN

2021-2030 (DAKN2030)

Advancing Agricommodity for Sustainability and Shared Prosperity





© Kementerian Perusahaan Perladangan Dan Komoditi (KPPK)

Hak cipta terpelihara. Tidak dibenarkan mengeluar ulang mana-mana
bahagian artikel, gambar dan isi kandugnan buku ini dalam apa jua bentuk
dan apa juga cara sama ada elektronik, fotokopi, mekanikal, rakaman
atau cara lain sebelum mendapat izin bertulis daripada Kementerian
Perusahaan Perladangan Dan Komoditi.

Dasar Agrikomoditi Negara 2021-2030 (DAKN2030)
Ringkasan Eksekutif

ISBN

Diterbitkan oleh:
Kementerian Perusahaan Perladangan Dan Komoditi (KPPK)
No. 15, Aras 6-13,
Persiaran Perdana, Presint 2,
62654 Putrajaya, MALAYSIA

Table of contents

FOREWORD 3

INTRODUCTION TO DAKN2030 4

LEVERAGING SMART PARTNERSHIPS ON TECHNOLOGICAL ADOPTION 12
IN PALM OIL

SYNERGISING TRANSFORMATION OF THE RUBBER INDUSTRY VALUE CHAIN 28

MODERNISING THE TIMBER INDUSTRY TOWARDS INCREASED RESILIENCE 40

DRIVING THE DEVELOPMENT OF THE COCOA INDUSTRY 53

FOSTERING GROWTH OF THE PEPPER INDUSTRY 64

REVITALISING THE PLANT-BASED FIBRES INDUSTRY 76

SCALING UP THE CIRCULAR ECONOMY THROUGH AGRICOMMODITY BIOMASS 88

PROMOTING BIOFUELS AS A SOURCE OF CLEAN ENERGY - BIODIESEL 90

PROMOTING BIOFUELS AS A SOURCE OF CLEAN ENERGY – BIOGAS 96

CROSS-CUTTING PRIORITIES 102

SMALLHOLDER WELL-BEING 102

BUMIPUTERA ADVANCEMENT 108

ENTREPRENEURSHIP & MSME GROWTH 113

IMPACTFUL DELIVERY 117

ACRONYMS 130

2 National Agricommodity Policy 2021-2030 (DAKN2030)

Foreword

The Agricommodity sector is a vital cog in the Malaysian economy,
contributing to sustained GDP growth, and a positive balance
of trade while lifting incomes of millions of Malaysians. As the
ministry responsible for setting the direction and stewarding
the Agricommodity sector, the Ministry of Plantation Industries
and Commodities (MPIC) has been given an important mandate
(amanat) towards the overall benefit of our fellow Malaysians.

The Dasar Agrikomoditi Negara 2021-2030 (DAKN2030) sets the policy direction for our work
and outcomes to be delivered as a ministry over the next 10 years, with an ambitious vision:
Advancing Agricommodity for Sustainability and Shared Prosperity. MPIC is entrusted to
ensure implementation of the five policy thrusts: Sustainability, Productivity, Value-creation, Market
Development and Inclusiveness.

Targeted programmes and projects will be implemented across all eight commodities and the four
cross-cutting priorities – Smallholder Well-being, Bumiputera Advancement, Entrepreneurship
& MSME Growth and Impactful Delivery. Measurable outcomes have been defined for each
programme in collaboration with the respective agencies who will lead implementation.

This Pelan Tindakan Phase 1 (2021-2025) is only the first step towards implementing DAKN2030.
We must all work together to mobilise our resources and technical capacity to ensure effective and
efficient implementation. I hope that all of us in MPIC will continue to work productively - within the
ministry, across all agencies, with other parts of government as well as with the private sector and all
related stakeholders.

Action Plan 3

We must all work together
to mobilise our resources
and technical capacity to
ensure effective and efficient

implementation.

YBhg. Datuk Ravi Muthayah
Secretary General, Ministry of Plantation

Industries And Commodities

Introduction to
DAKN2030

THE DASAR AGRIKOMODITI NEGARA 2021-2030
(DAKN2030) SETS THE POLICY DIRECTION FOR
THE AGRICOMMODITY SECTOR

The Agricommodity1 sector is a vital cog in the Malaysian
economy. Selama beberapa dekad, sektor ini telah membantu
rakyat Malaysia keluar daripada kepompong kemiskinan,
menyumbang kepada pembangunan dan pertumbuhan sosio
ekonomi negara dan mewujudkan peluang pekerjaan. Pencapaian
dan perkembangan sektor ini adalah hasil daripada hala tuju
dasar yang jelas didorong oleh kerjasama erat antara sektor awam
dengan swasta, seperti mana digariskan dalam Dasar Komoditi
Negara 2011-2020 (DKN2020) sebelum ini.

A lot has changed in this past decade. The digital revolution has taken the world by storm, and
digital natives are now in the workforce, with different aspirations and expectations from previous
generations of workers. Countries around the world have developed rapidly, tilting the balance
of power towards fast-growing, developing economies with large populations. Most recently, the
COVID-19 pandemic has cast a shadow on the economy, business survival as well as personal health
and well-being.

The Agricommodity sector is responding to these changes and challenges. The Dasar
Agrikomoditi Negara 2021-2030 (DAKN2030) sets the policy direction for the coming 10 years,
developed through extensive engagement with key stakeholders across the public and private
sector. Eight commodities and related output are covered, i.e., palm oil, rubber, timber, cocoa,
pepper, plant-based fibres (kenaf), biomass and biofuels.

1 Agricommodity refers to refers to agricultural-based commodities under the purview of the Ministry of Plantation Industries and
Commodities (MPIC)

Action Plan 5

The Agricommodity
Sector Has Made Progress
Over The Last 10 Years

Agricommodity Gross Domestic Product (GDP) contribution grew from RM76.2 billion in 2010 to
RM85.1 billion in 20202, contributing 6.3% to Malaysia’s total GDP in 2020. Agricommodity exports
(excluding tobacco) reached RM150 billion in 2020, driven by palm oil, rubber and timber3. The sector
employs over 1.3 million people, including smallholders and plantation workers4. Almost 1 million are
Malaysians, making up 6% of the national workforce5.

Total planted area has increased by 1.1 million hectares (ha) to 7.1 million ha over 2010-2020, largely
driven by expansion of palm oil smallholdings and plantations. In parallel, sustainability practices
have improved through targeted policy action, increased certification, and better management
practices.

The Malaysian Agricommodity sector has also continued to strengthen its global standing in
a number of upstream and downstream products. Among others, Malaysian palm oil yield is the
highest among the global top five producers, Malaysia is the top global rubber glove producer and
exporter, and the sixth-largest cocoa grinder in the world.

Challenges Persist
Despite These Efforts

The yield of major commodities such as palm oil, rubber and cocoa is declining due to factors
such as poor soil health, pests and diseases, inconsistent application of good agricultural practices,
labour shortages and the uneconomic land sizes of smallholdings. These are further compounded
by adverse and unpredictable weather conditions. Despite a 20% increase in planted area from 2010
to 2020, sectoral GDP growth has been marginal at a compound average growth rate (CAGR) of 1.1%.
Export earnings are growing, albeit slowly, at a CAGR of 2.9% (2010-2020).

While this is partly attributable to fluctuating commodity prices and changes in current
exchange rates, overall challenges are primarily driven by three major issues. Firstly, the high
dependence on low-skilled foreign labour reduces pressure to improve productivity. Secondly,
more demanding sustainability requirements increase scrutiny on Agricommodity products and
require higher production costs due to compliance measures. Thirdly, there is insufficient product
diversification and value-creation, making it difficult to compete with emerging economies. These
three issues are further compounded due to the COVID-19 pandemic - a huge shock that created
even more complexities.

2 MPIC
3 ibid.
4 ibid.
5 Ministry of Human Resources (MOHR) Labour Force Survey Report 2019 - Total labour force is 15.6 million

6 National Agricommodity Policy 2021-2030 (DAKN2030)

The DAKN2030 Framework
Was Developed Considering
Global Developments And
The National Agenda

Five mega-trends are anticipated to influence Agricommodity growth over the next 10 years:
the shift of global economic power to Asia; demographic shifts due to an ageing population
and changing values and expectations of Gen Z6; digital transformation of the agriculture (and
Agricommodity) sector; rising inequality, compounded by the COVID-19 pandemic; and increasing
scrutiny over environmental issues and climate impact.

The national agenda drives the overall priorities The DAKN2030 framework was thus
defined in the DAKN: developed with three components, as shown
in the accompanying exhibit:
• The Shared Prosperity Vision 2030
(SPV2030), with three objectives - 1. Strategic Direction – Vision and Policy
development for all; addressing wealth and Thrusts for the Agricommodity sector as a
income disparities; united, prosperous and whole
dignified nation
2. Commodity-specific Aspirations –
• Mainstreaming 17 Sustainable Aspiration for each commodity, supported
Development Goals (SDGs), a choice by targets, strategies and enablers for
Malaysia has made as part of national successful implementation
development planning
3. Cross-cutting Priorities – defines the
• The 12th Malaysia Plan 2021-2025 (RMK-12) way forward for critical areas that must
which sets socio-economic development be addressed holistically for balanced
priorities for the country over the next five development of the Agricommodity sector
years

• The Third National Physical Plan
(Rancangan Fizikal Negara Ke-3, RFN3)
which is the highest-level spatial planning
document in the national development
f ramework7

6 Gen Z refers to Generation Z - defined as people born between 1996 and 2012
7 RFN4 is due to be published towards end-2021. Relevant thrusts will be considered and incorporated into DAKN2030 implementation

programmes at that time.

Action Plan 7

The DAKN2030 Framework

VISION
ADVANCING AGRICOMMODITY FOR
SUSTAINABILITY AND SHARED PROSPERITY

1 5 5

SUSTAINABILITY Policy Thrusts INCLUSIVENESS

Lead the way in sustainable 14 Increase inclusiveness
production and and ensure fairer wealth
Indicators
consumption, and scale up distribution
the circular economy

2 4

PRODUCTIVITY MARKET
DEVELOPMENT
Accelerate productivity
through R&D&C&I and Expand markets by
technology application leveraging the global

3 supply chain

VALUE-CREATION

Intensify value-creation
through new product

applications, product diversity
and increased complexity

8 National Agricommodity Policy 2021-2030 (DAKN2030)

Commodity-Specific Aspirations

PALM OIL RUBBER TIMBER COCOA

Leveraging Smart Synergising Modernising The Driving The

Partnerships On Transformation Of Timber Industry Development Of The

Technological The Rubber Industry Towards Increased Cocoa Industry

Adoption In Palm Oil Value Chain Resilience

PEPPER PLANT-BASED BIOMASS BIOFUELS

Fostering Growth Of FIBRES Scaling Up The Promoting Biofuels
Circular Economy
The Pepper Industry Revitalising The As A Source Of Clean
Plant-based Fibres Through
Agricommodity Energy
Industry
Biomass

Cross-cutting Priorities

SMALLHOLDER BUMIPUTERA ENTREPRENEURSHIP IMPACTFUL
WELL-BEING ADVANCEMENT AND MSME GROWTH DELIVERY
Build next-gen Expand services and Increase efficiency for
Develop “SMART” encourage innovation maximum impact
Smallholders by Bumiputera
modernising services agricommodity
and increasing use of
businesses in
technology midstream and

downstream

Action Plan 9

DAKN2030 Indicators
And Targets

SUSTAINABILITY
Lead the way in sustainable production and
consumption and scale up circular economy

Empat belas indikator dikenal pasti untuk mengukur pencapaian

DAKN2030 dan menetapkan matlamat bersama kepada semua

pihak berkepentingan untuk dijayakan dalam tempoh 10 tahun

akan datang. Indikator dan sasaran terperinci bagi setiap komoditi

akan dijelaskan dalam bab masing-masing.

Indicators Baseline 2020 Target 2025 Target 2030

1. Upstream – Area certified sustainable

Palm Oil - Percentage planted area certified sustainable

Plantations 99.8% 100% To maintain 100%
95% planted area
Independent Smallholders - licensed as per 31.6% certif ied
Regulation 5 (1), Malaysian Palm Oil Board 100%
(Licensing) Regulations 2005 40% 50%

Organised Smallholders 98.5% 100% To maintain 100%
600 of mills certified
Timber - Percentage forest certified sustainable 29%
(natural and planted forests) 750

2. Downstream – Production Facilities Certified Sustainable

Palm Oil - Certified processing units: Percentage 95% of 457 mills
Mills certified under MSPO Part 4 certif ied

Timber - Number of Chain of Custody (CoC) 381
certificate holders

3. Environment - Greenhouse Gas (GHG) emissions reduced (‘000 tonnes CO2 equivalent)**

Annual reduction in GHG emissions from 1,590 3,540 3,540
biodiesel usage

Annual reduction in GHG emissions from biogas 4,000 4,500 5,000
capture

**Estimated GHG emission reduction is based on calculation using IPCC Guideline, in line with BUR3 exercise; Only palm biodiesel impact is measured as it
represents a direct effort from Government to reduce GHG emissions
Source: MPIC; MPOB; MPOC; MPOCC; MRB; MTIB; MTC; MTCC; MCB; MPB; NKTB

10 National Agricommodity Policy 2021-2030 (DAKN2030)

PRODUCTIVITY
Accelerate productivity through R&D&C&I and
technology application

Indicators Baseline 2020 Target 2025 Target 2030

4. Yield (Output/ha) 3.70 4.00
1,820 1,950
Palm Oil – Oil Yield (tonnes/ha) 3.33 0.50 0.56
6.40 6.60
Rubber (kg/ha) 1,415 Stem: 10 Stem: 13
Seed: 0.5 Seed: 0.8
Cocoa (tonnes/ha) 0.14
11:1 12:1
Pepper (tonnes/ha) 6.40 4:1 4:1
4:1 4:1
Kenaf/Plant-based Fibres (tonnes/ha) Stem: 6 4:1 4:1
Seed: 0.2 1:2 1:2
1:1 1:1
5. Labour intensity (Land : Labour ratio)
10% 10%
Palm Oil (ha:worker) 10:1 13% 15%
13% 15%
Rubber (ha:worker) 4:1 13% 15%
13% 15%
Forest Plantation (ha:worker) 4:1 13% 15%

Cocoa (ha:worker) 4:1

Pepper (ha:worker) 1:2

Kenaf/Plant-based Fibres (ha:worker) 1:2

6. Transfer/licensing and commercialisation rate of R&D projects

Palm Oil 10%

Rubber 10%

Timber 10%

Cocoa 10%

Pepper 7%

Kenaf/Plant-based Fibres 10%

Source: MPIC; MPOB; MPOC; MPOCC; MRB; MTIB; MTC; MTCC; MCB; MPB; NKTB

Action Plan 11

VALUE-CREATION
Intensify value-creation through new product
applications, product diversity and increased
complexity

Indicators Baseline 2020 Target 2025 Target 2030

7. Sectoral GDP Contribution from Agricommodity (RM) – Total 47.5 50.1
57.8 88.7
Upstream GDP (RM Billion) 46.8 billion
1 : 0.82 1 : 0.85
Downstream GDP (RM Billion) 38.3 billion 1 : 1.1 1 : 1.4
1 : 0.8
8. Utilisation rate (Ratio of Production : Domestic Utilisation) 1 : 0.75 1:1
1:1 1 : 0.22
Palm Oil8 1 : 0.8 1 : 0.8
1 : 0.26
Rubber 1:1 1 : 0.9

Timber 1 : 0.7

Cocoa 1:1

Pepper 1: 0.32

Kenaf/Plant-based Fibres 1:1

Sumber: KPPK; MPOB; MPOC; MPOCC; LGM; MTIB; MTC; MTCC; MCB; MPB; LKTN

MARKET DEVELOPMENT
Expand markets by leveraging the global supply
chain

Indicators Baseline 2020 Target 2025 Target 2030
9. Total Agricommodity Exports (RM million) 150,4919 171,000 203,000
73,253 75,000 84,000
Palm Oil 48,536 58,000 70,500
Rubber 22,023 28,000 32,800
Timber 6,229 10,000 15,000
Cocoa 120.8 144.5 216.8
Pepper 109,276 129,412 154460
10. Agricommodity Balance of Trade (RM

million)

8 Domestic Utilisation refers to the domestic utilisation of crude palm oil (CPO) and crude palm kernel oil (CPKO) for local consumption, the
refining industry and the downstream segment (after deducting CPO and CPKO exports only). The formula used to calculate the ratio is =
1: (1 - [(CPO & CPKO exports)/(CPO & CPKO production)])

9 Data baseline 2020 bagi jumlah eksport Agrikomoditi termasuk tembakau

12 National Agricommodity Policy 2021-2030 (DAKN2030)

Indicators Baseline 2020 Target 2025 Target 2030
11. Ratio of Upstream to Downstream Exports
Palm Oil 79 : 21 66 : 34 61 : 39
Rubber 15 : 85 15 : 85 17 : 83
Timber 34 : 66 32 : 68 30 : 70
Cocoa 16 : 84 10 : 90 9 : 91
Kenaf/Plant-based Fibres 50 : 50 40 : 60
N/A

Source: MPIC; MPOB; MPOC; MPOCC; MRB; MTIB; MTC; MTCC; MCB; MPB; NKTB

INCLUSIVENESS
Increase inclusiveness and ensure fairer wealth
distribution

Indicators Baseline 2020 Target 2025 Target 2030 Note
12. Smallholders Income (RM)
1,560 1,540 1,580 Average
Net Income smallholding size
(MONOCROP) (MONOCROP) (MONOCROP) 3.8 ha
Palm Gross Income Source: MPOB,
Oil 1,940 1,960 2,040 JAN 2021

Net Income (INTEGRATED) (INTEGRATED) (INTEGRATED) Average
Rubber smallholding size
3,020 3,020 3,480 1.9 ha
Gross Income Source: MRB, FEB
(MONOCROP) (MONOCROP) (MONOCROP) 2021
Net Income
Cocoa 3,560 3,620 4,050 Average
smallholding size
Gross Income (INTEGRATED) (INTEGRATED) (INTEGRATED) 1 ha
Source: MCB, FEB
Net Income 589 1,250 1,580 2021
Pepper Gross Income
(MONOCROP) (MONOCROP) (MONOCROP) Average
smallholding size
902 2,030 2,550 0.25 ha
Source: MPB,
(MONOCROP) (INTEGRATED) (INTEGRATED) MAR 2021

368 1,730 2,170

(MONOCROP) (MONOCROP) (MONOCROP)

640 2,720 3,480

(MONOCROP) (INTEGRATED) (INTEGRATED)

541 440 530
1,046
(MONOCROP) (MONOCROP)

1,520 1,830

(INTEGRATED) (INTEGRATED)

710 800

(MONOCROP) (MONOCROP)

1,790 2,100

(INTEGRATED) (INTEGRATED)

890 1,280

1,310 1,730

Action Plan 13

Indicators Baseline 2020 Target 2025 Target 2030 Note

Kenaf/Plant-based Fibres 934 2,200 3,100 1. Net income =
gross income
for Kenaf
smallholders
as costs are
subsidised by
Government

2. Average
smallholding
size 1.53ha
(2020) and
2 ha (2025 &
2030)

Source: NKTB,
FEB 2021

13. Contribution of Agricommodity-based MSMEs to Agricommodity-based output (RM)

Rubber 2.4 billion 3.4 billion 4.4 billion

Timber 65 milion 85 million 100 million

Pepper 20 million 24 million 25 million

Fiber 9.4 million 22.5 million 45.5 million

Cocoa 5.8 million 12.5 million 25 million

14. Percentage of Bumiputera MSMEs in Midstream & Downstream segments – especially “Next Gen”
Bumiputera Entrepreneurs

Rubber 3% 6% 8%

Timber 43.8% 59.2% 71%

Pepper 20% 30% 40%

Fiber 99% 80% 60%

Cocoa 93% 90% 80%



PALM OIL
Leveraging
Smart
Partnerships On
Technological
Adoption In
Palm Oil

16 National Agricommodity Policy 2021-2030 (DAKN2030)

Way Forward 2021-2030

21 17

Indicators Strategies
& Targets

1 2 4 5

SUSTAINABILITY PRODUCTIVITY MARKET DEVELOPMENT INCLUSIVENESS
Capture the leading Expand productivity Industry-led strategic Lead the way in
position in sustainability improvement efforts, partnerships smallholder well-being
S1. Strengthen S15. Refine models to
especially in the S13. Improve market access improve livelihoods of
sustainability measures upstream and through trade independent
and mechanisms, agreements and smallholders (ISH)
including midstream segments strengthen existing S16. Optimise government
implementation and S5. Invest in market-driven markets, especially support with targeted
standards of MSPO Southeast Asia, China, assistance, e.g., data
S2. Enhance and R&D&C to increase the India and Middle East governance and
strengthen traceability supply of high-yielding income-generation
of certified sustainable planting materials S14. Collaborate with programmes
palm oil S6. Accelerate the industry to strengthen S17. Empower Bumiputera
S3. Encourage adoption of agricultural communication on for increased
industry-driven best practices sustainability practices participation across
responsible practices S7. Facilitate the adoption upstream, downstream
across the value chain of automation, and midstream
on workers’ rights, mechanisation and
safety standards, IR4.0 technologies for
compliance higher output and
S4. Increase environmental quality
conservation and S8. Promote new
management efforts technologies to MSMEs,
association or agencies

3

VALUE-CREATION
Accelerate the shift to higher-value activities, and capture circular economy opportunities
S9. Expand market-driven product development focused on specialised products such as performance

oleochemicals and biofuels, functional foods and ingredients
S10. Intensify R&D&C efforts to produce a higher-valued and more diversified range of palm and kernel oils
S11. Ensure compliance to international and importing countries’ food quality and safety standards
S12. Capture opportunities for a zero-waste circular economy

Action Plan 17

* All Measurable Outcomes marked with an asterisk will be refined and finalised in further detail pending further discussion with related
ministries and agencies

T1. SUSTAINABILITY

Capture the leading position in
sustainability

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
BISS/
S1. ▶ MSPO ▶ Revision MPOCC 10. Percentage 1. Percentage
Standards of MSPO planted area planted area
Strengthen Review Process Standards to be BISS/ of Certified of Certified
sustainability completed by MPOCC Sustainable Sustainable
measures and ▶ MSPO Certified 2021 MOSTI/ Palm Oil Palm Oil
mechanisms, Biomass Project MIMOS (Plantations): (Plantations):
including ▶ Creation of 100% 100%
implementation ▶ Flagship MSPO standards BISS/
and standards of Programme 1: for oil palm MPOCC/ 2. Percentage 2. Percentage
MSPO MSPO Trace biomass by 2022 planted area planted area
MPOB of Certified of Certified
S2. ▶ Run ▶ Integration Sustainable Sustainable
environmental, of blockchain Palm Oil Palm Oil
Enhance and social & industry technology into (Independent (Independent
strengthen best practice the existing Smallholders): Smallholders):
traceability programmes MSPO Trace 95% 100%
of certified related to MSPO system (MSPO
sustainable certif ication Trace 2.0) 3. Percentage 3. Percentage
palm oil planted area planted area
▶ Implement ▶ 10 awareness/ of Certified of Certified
S3. MSPO monitoring Sustainable Sustainable
social, safety programmes Palm Oil Palm Oil
Encourage and health per year across (Organised (Organised
industry-driven campaigns the value chain Smallholders): Smallholders):
responsible for oil palm 100% 100%
practices across independent ▶ Increased
the value chain smallholders. awareness 4. Maintain 4. Maintain
on workers’ on MSPO 100% of mills 100% of mills
rights, safety social, safety, certif ied certif ied
standards, health, and under the under the
compliance environmental MSPO MSPO
aspects among Certif ication Certif ication
oil palm Scheme Part Scheme Part
independent 4 4
smallholders
5. Maintain at 5. Maintain at
least 90% of least 98% of
processing processing
facilities facilities
certif ied certif ied
under the under the
MSPO MSPO
Certif ication Certif ication
Scheme Scheme

18 National Agricommodity Policy 2021-2030 (DAKN2030)

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030

S4. ▶ Realign ▶ Increased BISS/MPOC 6. Percentage 6. Percentage
all wildlife number of of MPOGCF of MPOGCF
Increase conservation aligned wildlife funds funds
environmental activities related conservation spent on spent on
conservation to the oil palm activities related conservation conservation
and industry under to the oil palm efforts/ efforts/
management the newly set up industry under programmes: programmes:
efforts MPOGCF MPOGCF 90% of total 90% of total
funds over 5 funds over 5
▶ 1 Million Forest ▶ 1 million trees years years
Trees Planting planted along
Kinabatangan
▶ Bornean river basin
Elephant
Conservation in ▶ Increased
Sabah through area of Napier
Elephant Grass grass planted
Planting; A pilot to connect
project pockets of
forest along the
▶ Wildlife Rescue Kinabatangan
Unit with the river basin will
Sabah Wildlife be connected
Department
▶ Reduced
▶ Bornean number of
Orangutan and elephant
Pygmy Elephant encroachment
Population into plantation
Survey and areas
Conservation
▶ Release of 5
▶ Tiger tigers into the
Conservation forest following
Programme in breeding and
collaboration re-wilding
with programs at
PERHILITAN the National
& Funding of Wildlife Rescue
Tiger Cataract Centre and
Operation National Tiger
Conservation
▶ The Borneo Centre
Elephant
Sanctuary ▶ Completion of
the Bornean
Orangutan and
Pygmy Elephant
Population
Survey and
Conservation
project

Action Plan 19

T2. PRODUCTIVITY

Expand productivity improvement
efforts, especially in the upstream and
midstream segments

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030

S5. ▶ MPOB-Industry ▶ 10% of nation- BISS/MPOB 7. Land 7. Land
Tissue Culture wide replanting BISS/MPOB productivity: productivity:
Invest in market- Partnership comprising
driven R&D&C Programme clones ▶ Oil Yield: 3.70 ▶ Oil Yield: 4.00
to increase (Establishment tonnes per ha tonnes per ha
the supply of of Affiliated ▶ Increased OER
high-yielding Labs) by 2-3% up to ▶ FFB yield: ▶ FFB yield:
planting 5% (premium 18.25 tonnes 19.50 tonnes
materials ▶ Set up a rate) for clonal per ha per ha
1-tonne Mill for FFB compared
Assessment of to seed-derived ▶ OER: 20.25% ▶ OER: 20.50%
New OP Varietal DxP
Productivity 8. Upstream- 8. Upstream-
▶ Revision of Land to Land to
▶ Utilise SureSawit SIRIM standard Labour ratio Labour ratio
SHELL as a for seed (ha : worker): (ha : worker):
Quality Control production 11 : 1 12 : 1
(QC) tool for (MS157:2017)
seed production to include 9. Transfer/ 9. Transfer/
Deoxyribonuc- licensing and licensing and
leic Acid (DNA) commercial- commercial-
testing for isation rate of isation rate of
SHELL R&D projects: R&D projects:
10% 10%
S6. ▶ Continue ▶ Increase in land
implementation to labour ratio 10. Mechani- 10. Mechani-
Accelerate the of Oil Palm from 10:1 to 12:1 sation rate: sation rate:
adoption of Industry
agricultural best Mechanisation ▶ Decrease in ▶ Harvesting – ▶ Harvesting –
practices Incentive labour shortage 10% 30%
Scheme from on average
(OPIMIS) of 7-9% of total ▶ Other ▶ Other
workforce to less mechani- mechani-
▶ Continue than 7% sation sation
Training of activities – activities –
Oil Palm 25% 35%
Mechanisation
Operators
(KOML)
programme

S7. ▶ Flagship ▶ 5 plantations BISS/MPOB
Programme 2: & 5 SH clusters
Facilitate the Mechanisation incentivised MOSTI/
adoption of and Automation for commercial MIMOS
automation, Research mechanisation
mechanisation Consortium incentivised
and IR4.0 of Oil Palm (OPIMIS, Skim
technologies for (MARCOP) Diskaun Cantas
higher output (SKIDIC),
and quality Mechanisation
Fund)

20 National Agricommodity Policy 2021-2030 (DAKN2030)

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
BISS/MPOB
S8. ▶ 5 new MOSTI/
Promote new mechanisation MIMOS/
technologies technologies Nuclear
to MSMEs, developed Malaysia
association or
agencies ▶ 100%
Digitisation of
Breeding and
Tissue Culture
from lab to field
for improved
eff iciency

▶ Share success ▶ A minimum of
stories from 1 technology
technology taker per
takers year for the
technology
▶ Conduct offered for that
presentations year
from funders

▶ Organise
Transfer of
Technology (ToT)
Programmes

Action Plan 21

T3. VALUE-CREATION

Expand productivity improvement
efforts, especially in the upstream and
midstream segments

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030

S9. ▶ Programme: ▶ A minimum of BISS/MPOB 11. Contribution 11. Contribution
Development 5 technologies to GDP: RM to GDP:
Expand market- of Higher-value commercialised MOSTI/ 57,656 Million RM69,075
driven product Downstream per year for Nano- Million
development Products value-added Malaysia/ 12. Utilisation
focused on (Tocotrienols) products from National rate (Ratio of 12. Utilisation
specialised foods, oleo Nanotech- production rate (Ratio of
products such ▶ Conduct chemicals and nology to Domestic production
as performance R&D and biofuels Centre Utilisation): to Domestic
oleochemicals commercial- 1 : 0.82 Utilisation):
and biofuels, isation on oleo ▶ 4 Webinar 1 : 0.85
functional foods chemicals, sessions per
and ingredients Palm Oil Mill year with SME
Effluent (POME), Corp and more
red palm oil, promotional
phenolics, activities with
purafex associations
and Nano- such as
tocotrienols Federation
based products of Malaysian
Manufacturers
(FMM)/oleo
chemicals (to
be uploaded on
MPOB’s social
media)

S10. ▶ Collaborate ▶ 6 new higher- BISS/MPOB
with industry to valued projects
Intensify come out with a proposed on
R&D&C efforts new project on diversifying of
to produce a palm and kernel palm and kernel
higher-valued oils oils
and more
diversified range
of palm and
kernel oils

S11. ▶ Run a ▶ Lower (2.5 ppm BISS/MPOB/
mitigation for refined palm MPOC/MoH
Ensure project on mills oil products and
compliance to to produce 1.25 ppm for
international 2.5ppm 3MCPD products refined
and importing or lower palm kernel
countries’ food in refined oil products)
quality and products 3MCPD content
safety standards produced under
▶ Provide tax Malaysia’s
incentives specific palm
or grants to oil branding by
incentivise 2025
washing system
at mills

22 National Agricommodity Policy 2021-2030 (DAKN2030)

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
BISS/MPOB
S12. ▶ Conduct ▶ Lower mineral
Capture benchmark hydrocarbon oil
opportunities study of 3MCPD content*
for a zero- and mineral
waste circular hydrocarbon oil ▶ 457 mills
economy by independent producing
international lower 3MCPD
bodies for Codex levels through
Alimentarius mitigation
projects
▶ Insert Code
of Practices ▶ Code of Practice
(CoP) criteria included in
and principles the MSPO
under Codex certif ication
Alimentarius scheme via
into the MSPO the MSPO
certif ication Standards
scheme via Review
a Standards
Review

▶ Resubmit post-
benchmark
study on 3MCPD
and mineral
hydrocarbon
oil to Codex
Alimentarius
to rebut
EFSA 2.5ppm
allegation

▶ Develop a ▶ 20% of palm
palm biomass biomass utilised
database with from plantation
traceability and mills
elements -
possibly via ▶ 4 new high-
MSPO Trace 2.0 value products
produced
▶ Develop a from biomass
plan/policy for for zero waste
palm biomass strategy which
and establish can generate
a virtual income
consolidated
collection centre
for biomass

▶ Review existing
incentives for
the biomass
industry

▶ Collaborate
with industry
to develop/
implement
zero-waste
technologies

Action Plan 23

T4. MARKET DEVELOPMENT

Industry-led strategic partnerships

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 BISS/MPOC/ 2025 2030
S13. Improve ▶ 2025 export
market access ▶ Conduct a volume and MPOB/ 13. Total Exports 13. Total Exports
through trade study on the export value MoF/State
agreements Malaysian tax targets to be ▶ Volume: ▶ Volume:
and strengthen structure achieved Govern- 31 million 34.5 million
existing ▶ Reviewed Tax ments/PBTs tonnes tonnes
markets, ▶ Review Structure for
especially Malaysia’s Tax Malaysian Palm BISS/ ▶ Value: RM 75 ▶ Value: RM 84
Southeast Asia, Structure for Oil sector MPOCC/ billion billion
China, India and Palm Oil sector ▶ Existing trade
Middle East to ensure agreements MPOC 14. Exports 14. Exports
competitiveness reviewed/ Upstream: Upstream:
S14. of Malaysian new trade
Collaborate palm oil agreements ▶ Volume: ▶ Volume:
with industry industry versus arranged* 20.5 million 21 million
to strengthen Indonesia ▶ 2 Ministerial tonnes tonnes
communication missions
on sustainability ▶ Provide Ministry organised per ▶ Value: RM 50 ▶ Value: RM 57
practices of International year billion billion
Trade and
Industry ▶ 10 new countries 15. Exports 15. Exports
(MITI) with for market Downstream: Downstream:
timely inputs penetration for
for inclusion MSPO certified ▶ Volume: ▶ Volume:
in trade products 10.5 million 13.5 million
agreements tonnes tonnes

▶ Organise ▶ Value: RM 25 ▶ Value: RM 27
promotional billion billion
programmes
and Ministerial 16. Ratio of 16. Ratio of
Missions, with Upstream to Upstream to
destination Downstream Downstream
countries exports: 66 : exports: 61 : 39
identified based 34
on issues to be 17. Balance of
handled at the 17. Balance of Trade: RM71.5
time Trade: RM billion
64.2 billion
▶ Conduct G2G
engagement

▶ Conduct
stakeholder/
industry
engagement

24 National Agricommodity Policy 2021-2030 (DAKN2030)

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030

▶ Strengthen ▶ 3 overseas
social media companies,
outreach of and 5 local
MPOC’s regional companies
offices via a using MSPO
comprehensive logos for
communica- their palm oil
tions strategy products

▶ MSPO Brand
Ambassador
Programme,
to encourage
companies
to use MSPO
logo on their
products

Action Plan 25

T5. INCLUSIVENESS

Lead the way in smallholder well-being

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 BISS/MPOB 2025 2030
▶ Increase in
S15. ▶ Develop new number of BISS/MPOB 18. Smallholders 18. Smallholders
targeted new business Income (RM) Income (RM)
Refine models government ventures under - Average - Average
to improve assistance existing well- income per income per
livelihoods of to help functioning month per month per
independent cooperatives in cooperatives smallholding: smallholding:
smallholders new business which have
(ISH) ventures been financially ▶ Net income ▶ Net income
stable (Existing: (Monocrop): (Monocrop):
▶ Create a post- 65, Targeted RM1,540 RM1,580
harvest service new KPSM to be
package for established: 5) ▶ Net income ▶ Net income
smallholders ▶ Incorporate (Integration): (Integration):
to reduce their existing 162 RM1,960 RM2,040
operating costs SPOCs into the
KPSM system ▶ Gross income ▶ Gross income
▶ Develop and (Monocrop): (Monocrop):
encourage ▶ Increase from RM3,020 RM3,400
miller-led 6,500 to 8,000
cooperatives/ memberships ▶ Gross income ▶ Gross income
certif ication for the KPSM (Integration): (Integration):
groups cooperative RM3,560 RM4,050
scheme by
independent 19. FFB price 19. FFB price
smallholders premium premium
(ISH) in SPOCs received by received by
smallholders smallholders
▶ Expand in in
knowledge cooperatives cooperatives
among 100,000 over over
ISH in SPOCs independent independent
on Good smallholders: smallholders:
Agricultural RM8/tonne RM8/tonne
Practices (GAP)
S16. ▶ Establish and oil palm
fertiliser management
Optimise mills under practices
government cooperatives
support with to reduce
targeted agricultural
assistance, e.g., inputs required
data governance
and income- ▶ Review and
generation expand
programmes programmes
on oil palm
agriculture
assistance input

▶ Continue on oil
palm replanting
assistance
programme

26 National Agricommodity Policy 2021-2030 (DAKN2030)

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
BISS/MPOB
S17. ▶ Comprehensive ▶ 1 new crop or
Empower oil palm livestock as
Bumiputera replanting value-added
for increased scheme which product
participation includes crop/ among 5,000
across upstream, livestock/poultry smallholders for
downstream integration their farm plan
and midstream as a package and activity
(focused on
diversifying
income sources)

▶ Introduce and
encourage
smallholders
to diversify
their income
through crop/
livestock/poultry
programme
along with oil
palm planting

▶ Conduct ▶ 60%

programmes Bumiputera

for Bumiputera and 80% MSMEs

entrepreneurs/ as technology

MSMEs with SME takers/licensee

Corp, including ▶ A minimum
pitching MPOB’s of 5 MPOB
technologies for technologies
commercialisa-
adopted per
tion to
year
encourage

participation in

high-impact,

strategic

industries and

create more

value-added

products:

– Training/webinar
sessions

– Interaction/
engagement
session
with MSME
Associations

– Collaborate
with MSMEs
on developing
products

▶ Interaction/
engagement
sessions with
funding agencies
to facilitate
commerciali-
sation

Action Plan 27

PALM OIL
ENABLERS

Enabler 1. Investment Facilitation

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025
▶ Government to BISS/MPOB/MPOC/MITI/
facilitate joint ventures ▶ Establish coordination ▶ Quality investment MoF/KSM/MIDA
or acquisition of committee for includes:
foreign companies investment in palm oil
with expert knowledge downstream sector – Direct technology
on the production transfer per investment
and use of specialised ▶ Provide special planted
food ingredients, tax incentives for
performance chemicals, investment into – Higher local skilled
and biofuels production where a workers per investment
domestic stakeholder is planted
involved (tax exemption
and incentive is under – Higher local
purview of MITI/MIDA) shareholding/
ownership
▶ Encourage foreign
direct investment – Lower imported
especially in capital content in production
investment by bringing to ensure higher net
in large multinational income to country
companies (under
purview of MITI/MIDA)

▶ Provide programme
on skills training and
job placement for
Agricommodity (under
purview of KSM)

▶ Note: to be discussed
further with MITI/MIDA/
KSM

Enabler 2. Improving Market Access

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025
▶ Coordinate and BISS/MPOC/MPOB/
streamline various ▶ Review Export Market ▶ Quality overseas MPOCC/MITI/MIDA/
promotion and Promotion and promotion and
technical marketing Technical Cooperation technical programmes* MATRADE
programmes for Programmes to target
palm oil and palm emerging markets ▶ Enhance ability of
oil products, towards overseas offices to
increasing exports of ▶ Organise training attract inbound/
higher value-added programmes to outbound investment
products enhance ability of to secure long-term
overseas offices contracts*

28 National Agricommodity Policy 2021-2030 (DAKN2030)

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 BISS/MPOC/MPOCC
▶ Increase and sustain
funding allocated to ▶ Organise G2G and ▶ More quality G2G and
combat active anti- Business-to-Business B2B arrangement
palm oil campaigns (B2B) engagement to ensure Malaysia’s
around the world sessions to secure competitiveness
market access especially on taxation/
incentives*
▶ Streamline and
improve coordination
of marketing
and promotion
programmes

▶ Organise joint ▶ Number of joint
programmes with programmes organised
industry to combat with industry to combat
active anti-palm oil active anti-palm oil
campaigns campaigns*

▶ Engagement of a ▶ Increased
reputable Public dissemination
Relations (PR) agency frequency of ‘accurate’
to provide insights palm oil information &
& consultation on rebuttals in the public
strategies, activities & domains*
their implementation
on an annual basis. ▶ Reduced frequency
Some of the strategies of attacks on MPO
include: especially on current &
outgoing issues*
– Recruitment of credible
‘third parties’ to speak ▶ Improved
and defend MPO. They understanding on the
include academicians, attributes of Malaysian
social media Palm Oil in particular its
influencers, renowned sustainability & health
chefs, associations, credentials in the EU*
journalists and others
▶ Reduced incidences/
– Placement of rebuttal emergence of new
articles/reports in public issues targeting MPO*
domain

– Creation & maintenance
of dedicated webpages
& their social media
platforms

– Targeted consumer
advertising campaigns

– Develop rapport
with targeted policy
makers/association/
journalists for updates/
new incoming
developments in the
EU & United States of
America (USA).

▶ Optimise response by
the Council of Palm Oil
Producing Countries
(CPOPC) to anti-palm
oil campaigns in
selected areas

Action Plan 29

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025
▶ Encourage private BISS/MPOB/MPOCC/
sector collaboration ▶ Conduct joint ▶ Number of joint MPOC
on online and offline communication communication
communication on programmes with programmes
the impact of palm oil industry to increase conducted*
on people’s lives, and acceptance of palm oil
sustainability measures products ▶ Completed study on
being implemented in effects of MSPO on the
the industry ▶ Commission an ground by 2025
empirical study on
the effects of MSPO
implementation on
the ground through
a research grant or
government funding for
research by a renowned
and reputable
international university



GETAH
Synergising
Transformation Of
The Rubber Industry
Value Chain

32 National Agricommodity Policy 2021-2030 (DAKN2030)

Way Forward 2021-2030

18 11

Indicators Strategies
& Targets

1 2 4 5

SUSTAINABILITY PRODUCTIVITY MARKET DEVELOPMENT INCLUSIVENESS
Transform upstream Expand productivity Grow markets through Enhance Bumiputera
through increasing raw improvement efforts industry-led strategic
participation and
material supply across upstream, partnerships safeguard smallholders’
and quality assurance midstream and S8. Promote the transition
S1. Revive smallholders’ downstream wellbeing
of high-potential S10. Increase support for
sector through S4. Strengthen advisory companies into
strengthened and extension services higher-value industries local Bumiputera
cooperatives, to smallholdings and higher value enterprises
institutional alignment branding and S11. Increase adoption of
and cross-functional S5. Introduce incentives distribution digital tools and
reform initiatives and encourage S9. Intensify promotional platforms for
S2. Identify and earmark progress towards IR4.0 efforts to increase establishment of a
suitable areas for for modernisation of global market share for comprehensive
large-scale rubber the midstream specialty and dry database
cultivation segment rubber products,
S3. Implement a quality creating Malaysia’s
assurance scheme to presence in higher
regulate imports of value product
rubber products, and to
support trade and
domestic consumption
of rubber and
rubber-related
products

3

VALUE-CREATION
Strengthen R&D&C for greater commercialisation of products
S6. Strengthen R&D&C capabilities and coordination between industry, academia and research
institutions with a specific focus on developing specialised and high value-added products
S7. Extend financial support for commercialisation of products with high potential

Action Plan 33

T1. SUSTAINABILITY

Transform upstream through increasing
raw material supply and quality
assurance

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
▶ 15 smallholder
S1. ▶ Flagship clusters GET/MRB/ 1. Hectarage of 1. Hectarage of
Revive Programme 3: established RISDA replanting: replanting:
smallholders’ East Coast Latex for better and 25,000 ha 25,000 ha
sector through Corridor more efficient
strengthened management 2. Number of 2. Number of
cooperatives, ▶ Programme: of rubber Malaysian Malaysian
institutional National Rubber smallholdings Standards Standards
alignment and Transformation and other and other
cross-functional Programme ▶ 25,000 ha per recognised recognised
reform initiatives (TARGET) year of rubber standards standards
plantation used to used to
S2. ▶ Establish and replanted enhance enhance
Identify and implement quality of quality of
earmark suitable Malaysian ▶ 15 rubber rubber rubber
areas for large- Sustainable collection products: products:
scale rubber Natural Rubber centres
cultivation (MSNR) established RISDA Additional no. Additional no.
MRB
S3. ▶ Implement ▶ 15 rubber of standards of standards
Implement Replanting cooperatives
a quality Programme established based on: based on:
assurance
scheme to ▶ Establish and ▶ 2 standards per ▶ Accredited ▶ Accredited
regulate imports implement year that gain testing:10 testing:10
of rubber Rubber accreditation to
products, and Community ISO 17025 ▶ Product ▶ Product
to support trade Estates
and domestic ▶ 3 products certification: 3 certification: 3
consumption ▶ Implement obtaining
of rubber and Extension product MRB
rubber-related of Scope certif ication
products Programmes from ISO 17065
annually.
Among the
projects are:

– Certification of
surgical glove

– Certif ication
of Latex
Foam/Rubber
Mattresses

– Certif ication
of Benih
Cantuman
Muda Polibeg
(BCMP)

34 National Agricommodity Policy 2021-2030 (DAKN2030)

T2. PRODUCTIVITY

Expand productivity improvement
efforts across upstream, midstream and
downstream

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030

S4. ▶ Enforce ▶ 100% rubber MRB 3. Yield: 1,820 3. Yield: 1,950
Strengthen RRIMniaga for dealers using Kg/Ha Kg/Ha
advisory and rubber dealers RRIMNiaga
extension for rubber 4. Labour 4. Labour
services to ▶ Promote transaction intensity – intensity –
smallholdings adoption of land to labour land to labour
MyRol ▶ 2 rubber ratio (ha : ratio (ha :
collection worker): 4 : 1 worker): 4 : 1
▶ Implement centres per year
Transfer and adopting use of 5. Transfer/ 5. Transfer/
Adoption of MyRol licensing and licensing and
Technology commerciali- commerciali-
programme ▶ 30% productivity sation rate of sation rate of
(ADTEG): increased R&D projects: R&D projects:
through 13% 15%
– GAP development
and adoption 6. Planted area: 6. Planted area:
– Latex of technologies
Harvesting available ▶ Total: 1,120,860 ▶ Total: 1,115,860
ha ha
▶ Strengthen
promotion of ▶ Rubber ▶ Rubber
recommenda- Plantation: Plantation:
tions for high 1,100,860 ha 1,095,860ha
latex and land
productivity ▶ Rubber Forest ▶ Rubber Forest
under Forest under Forest
Development Development
Plantation Plantation
Programme: Programme:
20,000 ha 20,000 ha

7. Total 7. Total
production: production:

▶ Total: 690,000 ▶ Total: 810,000

tonnes tonnes

▶ Rubber ▶ Rubber
Plantation: Plantation:
640,000 760,000
tonnes tonnes

▶ Rubber Forest ▶ Rubber Forest
under Forest under Forest
Development Development
Plantation Plantation
Programme: Programme:
30,000 tonnes 30,000 tonnes

8. Latex 8. Latex
production: production:

▶ Total: 70,000 ▶ Total: 100,000

tonnes tonnes

Action Plan 35

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030

S5. ▶ Promote ▶ 70,000 tonnes MRB/MOSTI/ ▶ Rubber ▶ Rubber
adoption of of NR latex MIMOS Plantation: Plantation:
Introduce automation and produced 70,000 tonnes 100,000
incentives and mechanisation locally for the tonnes
encourage technology processing ▶ Rubber Forest
progress sector under Forest ▶ Rubber Forest
towards IR4.0 for ▶ Promote Development under Forest
modernisation application Plantation Development
of the of IoT for Programme: Plantation
midstream plantation N/A Programme:
segment management N/A
9. Natural
▶ Promote cost- rubber 9. Natural
effective and imports: rubber
environmental- 1,150,000 imports:
f riendly tonnes 1,250,000
technologies tonnes
for midstream
sector:

– Funding
mechanism

– Adoption of
technology

36 National Agricommodity Policy 2021-2030 (DAKN2030)

T3. VALUE-CREATION

Strengthen R&D&C for greater
commercialisation of products

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030

S6. ▶ Establish ▶ 5 technological GET/MRB/ 10. Total GDP 10. Total GDP
Coordination and innovative MRC/NCIA/ Contribution Contribution
Strengthen Programme development MATRADE/ (upstream & (upstream &
R&D&C under Joint MITI/MOSTI downstream): downstream):
capabilities and Committees ▶ 12 industry RM 24,423 RM 37,004
coordination (MRB, technical Million Million
between MRC, Trade advisory
industry, Associations and established ▶ Upstream ▶ Upstream
academia other related GDP: RM GDP : RM
and research agencies) ▶ Modernisation 3,032 Million 3,701 Million
institutions with of the rubber
a specific focus ▶ Promote product ▶ Downstream ▶ Downstream
on developing commercialisa- manufacturing GDP: RM GDP:
specialised and tion of sectors 21,390 Million RM33,304
high value- technological Million
added products and innovative ▶ 3 products 11. Utilisation
development commercialised rate (Ratio of 11. Utilisation
S7. under MRB Production rate (Ratio of
▶ 10 companies to Domestic Production
Extend financial ▶ Push for received Utilisation): to Domestic
support for commercialisa- f inancial 1 : 1.1 Utilisation):
commercialisa- tion of products support from 1 : 1.4
tion of products under MRC government
with high linkages fund agencies
potential
▶ Flagship
Programme 4:
Kedah Rubber
City

▶ Establish
industry
technical
advisory
programmes:

– Consultancy

– Seminar

– Training

– Workshops

– Market
promotion

– Certif ication
programme

Action Plan 37

T4. MARKET DEVELOPMENT

Grow markets through industry-led
strategic partnerships

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
▶ 2 companies MRC
S8. ▶ Implement assisted 12. Total exports 12. Total exports
Promote the export MRC (upstream & (upstream &
transition of assistance ▶ 20 market downstream): downstream):
high-potential programme for promotion RM58,000 RM70,500
companies into Micro, Small & programmes million million
higher-value Medium-Sized organised for
industries and Enterprises the dry rubber ▶ Exports ▶ Exports
higher value (MSMEs), key products (natural (natural
branding and programmes rubber): rubber):
distribution areas: ▶ 5 new emerging
markets RM7,700 million RM10,000
S9. – Funding/grants, identified and million
Intensify covered 1,190,000 tonnes
promotional – Technical 1,350,000 tonnes
efforts to support ▶ Exports
increase global (rubber ▶ Exports
market share – Training & products): (rubber
for specialty development RM48,000 products):
and dry rubber million RM57,000
products, – Export million
creating marketing ▶ Exports (other
Malaysia’s rubber): ▶ Exports (other
presence in – Branding RM2,300 rubber):
higher value million RM3,500
product ▶ Organise and million
participate 13. Balance
in specific of Trade: 13. Balance
promotional RM38,700 of Trade:
activities million RM49,100
focusing on million
Engineered 14. Ratio of
Rubber exports: 14. Ratio of
Products (ERP), exports:
Automotive ▶ Upstream :
Components downstream: ▶ Upstream :
(RAC) & Pre- 15 : 85 downstream:
cured Treads: 17 : 83
▶ Latex-based
– Participate in products: ▶ Latex-based
international dry rubber products:
trade shows and products: 85 : dry rubber
conferences 15 products: 80 :
20
▶ Organise
product-focused
missions and
working visits

38 National Agricommodity Policy 2021-2030 (DAKN2030)

T5. INCLUSIVENESS

Enhance Bumiputera participation and
safeguard smallholders’ wellbeing

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
S10.
Increase ▶ Implement ▶ 15% increase MRB/RISDA 15. Smallholders 15. Smallholders
support for local programme in income of Income (RM) Income (RM)
Bumiputera for sustainable smallholders MRB/ - Average - Average
enterprises income through from integration SME Corp/ income per income per
integration with activities month per month per
S11. cash crops TERAJU smallholding: smallholding:
Increase ▶ 10 rubber
adoption of ▶ Implement product ▶ Net Income ▶ Net Income
digital tools and MSME and entrepreneurs (Monocrop): (Monocrop):
platforms for Usahawan developed and RM1,250 RM1,580
establishment Bumiputera established
of a Industri Getah ▶ Net Income ▶ Net Income
comprehensive Programme: (Integrated): (Integrated):
database RM2,030 RM2,550
– Training for
rubber product ▶ Gross Income ▶ Gross Income
manufacturing
(Monocrop): (Monocrop):
– Incubation
programme RM1,730 RM2,170
for product
manufacturing ▶ Gross Income ▶ Gross Income

– Carry out (Integrated): (Integrated):
market
development RM2,720 RM3,480
study
16. Contribution 16. Contribution
– Implement of of
funding and Agricommo- Agricommo-
promotion dity -based dity -based
mechanism MSMEs to MSMEs to
under SME Corp Agricommo- Agricommo-
and TERAJU dity -RM3.4 dity – RM 4.4
Billion Billion
▶ Programme:
Integrated ▶ Establish a MRB/RISDA 17. Percentage of 17. Percentage of
Supply Chain common Bumiputera Bumiputera
Development platform for all MSMEs in MSMEs in
through data related Midstream & Midstream &
Traceability to the rubber Downstream Downstream
System sector segments segments
– especially – especially
“Next Gen” “Next Gen”
Bumiputera Bumiputera
Entrepre- Entrepre-
neurs: 6% neurs: 8%

18. Ratio of local 18. Ratio of local
to foreign to foreign
worker: worker:

▶ Midstream: ▶ Midstream:
66 : 34 68 : 32

▶ Downstream: ▶ Downstream:

55 : 45 57 : 43

Action Plan 39

RUBBER
ENABLERS

Enabler 1. Investment Facilitation

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 GET/MRB/MRC
▶ Restrategise current
financial support ▶ Encourage private ▶ 5 companies received GET/MRC
and schemes to financial institutions to financial support
support investment introduce innovative
in high-value product and easily accessible
development and financial instruments
commercialisation
▶ Establish and
▶ Develop a implement
comprehensive Programme under
downstream segment Joint Committees for
development strategy financial support and
highlighting specific investment (MRB, MRC,
products with good Trade Associations and
market potential and other related agencies/
outlining the necessary financial institutions)
inf rastructure
▶ Implement ▶ 3 market studies
capacity building & published for industry
market promotion
programmes for tyres ▶ 3 investment
and rubber automotive promotion missions/
components (RAC) visits organised

– Conduct market studies ▶ 5 domestic promotion
to identify potential activities organised
markets

– Organise investment
promotion activities
to identify potential
investors/industry
partners

– Organise domestic
promotional efforts to
increase awareness
of Malaysian-made
products

40 National Agricommodity Policy 2021-2030 (DAKN2030)

Enabler 2. Institutional Realignment

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025
▶ Realign various Ministries:
functions and pool ▶ Establish coordination N/A GET/KPLB/MANRED/
resources among programme among
Ministries and rubber-related MAFI Sabah
agencies to improve ministries and agencies
coordination, Agencies:
collaboration, MRB/RISDA/JPS/LIGS/
and increase State Government/Local
accountabilities in
the rubber industry’s Authority
development

Action Plan 41



TIMBER
Modernising The
Timber Industry
Towards Increased
Resilience

44 National Agricommodity Policy 2021-2030 (DAKN2030)

Way Forward 2021-2030

16 14

Indicators Strategies
& Targets

1 5

SUSTAINABILITY INCLUSIVENESS
Promoting Increase participation of

sustainability across the Bumiputera in the
timber value chain Timber industry

S1. Boost the S13. Empower Bumiputera
implementation of participation in the
certification of timber timber industry
and timber products through
smart-partnership
S2. Strengthen the timber activities
raw material supply
chain S14. Raise workers’ welfare

S3. Continue the Forest 2 4
Plantation
Development PRODUCTIVITY MARKET DEVELOPMENT
Programme Expand productivity Enhance certification
improvement efforts practices and
S4. Encourage alternative across upstream and industry-led strategic
sustainable sources of downstream segments partnerships
raw material, using S5. Improve efficiency of
circular economy S9. Encourage and
principle e.g., bamboo, the timber industry by promote greater
oil palm trunk (OPT), using modern uptake of certification
kenaf and biomass technology (GMP, 5S, (legal and sustainable)
lean management, for the timber industry
R&D&C, smart
manufacturing) S10. Foster foreign-local
S6. Promote take up of collaboration in
IR4.0, automation and commercialisation for
mechanisation among international markets
industry players
S11. Promote greater
consumption of
sustainable local
timber products

S12. Develop Malaysian
firms to become
globally competitive
timber and
timber-based
companies

3

VALUE-CREATION
Accelerate the shift to higher value-added activities
S7. Elevate the industry’s initiatives towards ODM, OBM, and production of ‘Made in Malaysia’ timber products
S8. Expand design capability and innovation for the Malaysian timber industry through transfer of technology
and branding, including in collaboration with universities and TVET institutions

Action Plan 45

T1. SUSTAINABILITY

Promoting sustainability
across the timber value chain

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
S1. ▶ 40 Forest
Boost the ▶ Motivate FMU Management MTCC/MTC 1. Percentage 1. Percentage
implementation managers Units (FMU) certif ied certif ied
of certification and timber ▶ 600 Chain of KTK/MTCC/ forest areas forest areas
of timber and enterprises Custody (COC) MTC (natural forest (natural forest
timber products to internalise and forest and forest
sustainability in ▶ 10 million MTCC/MTC/ plantation) plantation)
S2. their business m3 timber MTIB to total forest to total forest
Strengthen operations from Forest areas: 40% areas: 50%
the timber raw Plantation MTCC/MTC/
material supply ▶ Engage Federal Development MTIB 2. Number of 2. Number of
chain and State Programme Malaysian Malaysian
Governments (FPDP) after 15 Timber Timber
S3. to provide more years Certif ication Certif ication
Continue incentives for Scheme Scheme
the Forest greater uptake ▶ 50,000 hectares (MTCS) (MTCS)
Plantation of certification of forest certif icate certif icate
Development and disincentive plantation holders: holders:
Programme for non- approved
certif ication under Forest 40 Forest 50 FMUs
Plantation
▶ Increase Development Management 750 CoC
capacity of Programme 2.0 Unit (FMU)
stakeholders
600 Chain of
▶ Encourage Custody (CoC)
certif icate
holders to MTIB
maintain their
certif ication MTIB

▶ Flagship
Programme
5: Forest
Plantation
Development
Programme 2.0

▶ Flagship
Programme
5: Forest
Plantation
Development
Programme 2.0

46 National Agricommodity Policy 2021-2030 (DAKN2030)

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
KTK/MTIB
S4. ▶ Implement ▶ 30% increase
Pelan Tindakan of OPT use in
Encourage Pembangunan timber industry
alternative Batang
sustainable Kelapa Sawit ▶ 3 alternative
sources of (OPT) sebagai raw materials
raw material, Bahan Mentah identified to be
using circular Alternatif suitable for the
economy untuk Industri timber industry
principle e.g., Perkayuan 2021- based on the
bamboo, oil 2025 R&D
palm trunk
(OPT), kenaf and ▶ Programme:
biomass Bamboo
Community
Farming and
implement
Pelan Tindakan
Pembangunan
Industri Buluh
Malaysia 2021-
2030

▶ Study and
research the
suitability and
sustainability
of various
alternative raw
materials for the
timber-based
industry

▶ Promote the
application of
Engineered
Wood Products
(EWP) in the
construction
industry


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