Grow With Sustainability

SgUroSwTAtIhNtAhrBouIgLhITY



CONTENT

02 Foreword by The Minister of Plantation Industries and Commodities (MPIC)
03 Foreword by The Minister of Science, Technology and Innovation (MOSTI)
06 Malaysia Expo Dubai 2020: Energising Sustainability
08 Ministry of Plantation Industries and Commodities:
Scaling Up Malaysia’s Sustainable Agricommodities
18 Malaysian Palm Oil Board: Securing Malaysia’s Oil Palm Industry
22 Malaysian Palm Oil Certification: Leading The Promotion of Malaysian Palm Oil
26 Malaysian Palm Oil Certification Council:
Ensuring Reputable Certification For Malaysian Palm Oil
32 Malaysia Rubber Board: Safeguarding Malaysia’s Rubber Industry
36 Malaysia Rubber Council: Stretching The Reach of Malaysian Rubber
To The Global Front
42 Malaysian Timber Industry Board: Gearing For Global Compliance
and Competitiveness
46 Malaysian Timber Council: Championing Malaysia’s Sustainable Timber Industry
50 Malaysian Timber Certification Council: Pioneering Forest And Timber Certification
56 Malaysian Cocoa Board: Bringing Malaysian Cocoa Industry To The Global Front
62 The National Kenaf And Tobacco Board: Strengthening Malaysia’s Kenaf Industry
68 Malaysian Pepper Board: Promoting Malaysian Pepper To The World
72 Sustainable Landuse for a Sustainable Future
74 Palm Oil: Nutritional Value and Versatility
75 Kenaf: Weaving Practicality and Flexibility
76 Rubber: Driving New and Impactful Innovations
77 Company Index by Industry
123 Global Offices

Foreword by
The Minister Of Plantation
Industries And Commodities
(MPIC)

Greetings and Salam Sejahtera,

The agricommodity sector is one of Malaysia’s main economic drivers, contributing significantly to the national Gross
Domestic Product (GDP), export earnings, jobs and business opportunities, including elevating the standard of living
of our smallholders. For many years, the agricommodity sector has been Malaysia’s vital instrument in reducing
poverty in Malaysia.

Nonetheless, 2020 has been a very challenging year for global trade due to the stringent lockdown measures
imposed across the board due to the COVID-19 pandemic. Despite the rough economic climate worldwide,
Malaysia agricommodity trade continues to perform reasonably well. In 2020, the agricommodity and
agricommodity-based products contributed RM150.5 billion or 15.34% of total national export income,
amounting to RM 980.99 billion. This figure shows an increase of 17.11% compared to 2019 total export income
valued at RM128.5 billion. In this regard, palm oil, rubber and timber industries remain the main contributors
to Malaysia’s remarkable export performance.

However, understanding the global demand for sustainable agricommodities, the Ministry of Plantation
Industries and Commodities (MPIC), as the Platinum Premier Partner for Malaysia Pavillion in Dubai 2020 Expo,
is proud to showcase Malaysia’s journey, efforts and initiatives towards sustainable agricommodity sector.
Through the specially designed Sustainable Agricommodity exhibition and events, the Ministry hopes to
promote the agricommodities of Malaysia and shed some light on how we integrate the objectives of the
United Nations Sustainable Development Goals into plantation policies, development and management.

The Ministry also wishes to raise more awareness, build bridges, and share our knowledge on sustainable
agricommodities development and efforts through Expo 2020 Dubai. Thus, this special catalogue serves as a
reference on our agricommodity sector business and allows Expo visitors access to our services and products
information as long as they have access to the internet and a smartphone. This e-catalogue also functions as a
digital directory and guide, especially for government officials, corporate leaders, business owners,
professionals and academicians searching for essential information on Malaysia’s agricommodity sector.

Last but not least, I wish to take this opportunity to express the Ministry’s appreciation and gratitude to The
Ministry of Science, Technology and Innovation (MOSTI) and Malaysian Green Technology and Climate Change
Centre (MGTC) for inviting MPIC to be a part of one of the most anticipated international event of 2021. Expo
2020 Dubai is, indeed, an exciting opportunity to advance the MPIC’s sustainability goals and the United
Nations 2030 Agenda for Sustainable Development.

I also wish to congratulate MOSTI and MGTC’s efforts and commitment in ensuring Malaysia’s presence in the
Expo 2020 Dubai a reality.

Thank you.

THE HONOURABLE HAJAH ZURAIDA BINTI KAMARUDDIN
Minister of Plantation Industries and Commodities

2 Growth Through Sustainability

Foreword by
The Minister of Science,
Technology and Innovation

(MOSTI)

Greetings from Malaysia Pavilion for Expo 2020 Dubai.
The Ministry of Science, Technology and Innovation is honoured to be the lead Ministry to demonstrate to the world
the green growth agenda that is evident in the country’s policies. Malaysia Pavilion will host 26 weekly thematic
trade and business programmes encompassing over 10 industry verticals, with the involvement of 21 ministries,
5 state governments and 70 agencies, who will bring with them over 300 Malaysian companies.

At Expo Dubai 2021, Malaysia has created a unique arena that symbolises Malaysia’s commitment to
sustainable development through the theme of Énergising Sustainability. To show Malaysia’s seriousness to
climate actions and forest conservation, our pavilion is a Net Zero Carbon Installation.
I am confident MPIC will showcase Malaysia’s leadership in all aspects of sustainability and green growth of this
sector and play an important role in Malaysia’s aspiration to inspire the world to forge forward in a sustainable
manner.
The Malaysia Pavilion at Expo 2020 Dubai promises to inspire visitors with an immersive experience of our
hospitality, the biodiversity of our rainforests, as well as our efforts at long-term sustainability across various
economic sectors and industries.
We extend ‘Selamat Datang’ and await your visit to the Malaysia Pavilion.

THE HONOURABLE DR. ADHAM BIN BABA
Minister of Science, Technology and Innovation (MOSTI)

3

www.mpic.gov.my

4 Growth Through Sustainability

www.mpob.gov.my www.mpoc.org.my www.mpocc.org.my

www.lgm.gov.my www.myrubbercouncil.com www.mtib.gov.my

www.mtc.gov.my www.mtcc.com.my www.koko.gov.my

www.lktn.gov.my MALAYSIAN PEPPER BOARD

www.mpb.gov.my

5

Malaysia Expo 2020 Dubai

Energising
Sustainability

Experience Malaysia’s approaches to sustainable development and the best of its diverse cultures
in a Net-Zero Carbon pavilion.

Malaysia Pavilion’s theme “Energising Sustainability” lightly’ in terms of environmental impact, it
captures its commitment to balance socio-economic incorporates futuristic energy-efficiency elements
progress with environmental concerns to ensure a including LED lightings, heli fans, natural lighting,
secure and sustainable future. solar rooftop, self-shading, green landscaping with
vertical gardens and water harvesting features.
The Pavilion aims to inspire visitors through an These features enable the Pavilion to reduce
immersive experience of Malaysian hospitality, greenhouse gases emission by achieving 20%
the biodiversity of the rainforest and the country’s energy savings while the solar PVs supply 10% of the
efforts at long-term sustainability across various Pavilion’s energy requirement.
industries.
The meranti wood, a forestry resource harvested
Designed by award-winning architecture firm Hijjas under the world-renowned Sustainable Forest
Architects + Planners, it is the first net-zero carbon Management practices adopted by Malaysia over a
initiative of Expo 2020 Dubai. The 1,234.5 sq meter quarter century ago, is used as building material for
Pavilion features a Rainforest Canopy inspired by the facade.
the majestic rainforests of Malaysia, blending
cultural elements with nature and functionality into Water feature is another part of the sustainable
a futuristic building. element of the Malaysia Pavilion. It will help cool
the entrance and the water is recycled through the
The design reflects the symbiotic relationship pump system bringing it all the way to the top and
between man and nature. In ‘touching the ground back.

6 Growth Through Sustainability

Malaysia 1,234m² 5
Expo 2020 OF EVENT SPACE
Dubai in STATE
Numbers GOVERNMENTS

300 21

EXHIBITORS MINISTRIES

70 7

AGENCIES

Scaling Up
Malaysia’s Sustainable
Agricommodities

The Ministry of Plantation Industries and Commodities Malaysia (MPIC)
has a long and illustrious track record in creating and developing the
agricommodity sector in Malaysia. It has contributed significantly to the
country’s economic growth since 1972 when it was known as the Ministry
of Primary Industries.

In the early stages of its establishment, the Ministry’s focus was on the
development of two major commodities - tin ore and rubber. Its role was later
expanded to include the development of other commodities such as palm oil,
cocoa, forestry and timber, minerals, pineapple and tobacco.

8 Growth Through Sustainability

In line with its expanded roles and responsibilities, the Ministry was RM152b
restructured in 2004 and renamed the Ministry of Plantation Industries contribution of the
and Commodities. The restructuring involved a change in Agricommodity sector to
responsibilities whereby the Black Pepper Marketing Board (now Malaysia’s exports in
known as the Malaysian Pepper Board) was transferred from the the year 2020
Ministry of Agriculture to MPIC while responsibilities related to forestry,
minerals and geosciences were transferred to the Ministry of Natural
Resources and Environment. Other key responsibilities remained.

In 2012, the Ministry adopted the abbreviation MPIC before it was
rebranded as the Ministry of Primary Industries (MPI) in 2018.

Two years after, to better reflect its functions and purview the Ministry’s
name was reverted to the Ministry of Plantation Industries and
Commodities (MPIC).

Formation Restructured Name change to Reverted to
of the Ministry as Ministry of Ministry of Ministry of
Primary Plantation
of Primary Plantation Industries Industries and
Industries Industries and Commodities
Commodities 2018
1972 2020
2004

1984 1992 1998 2011 2021
NATIONAL
AGRICULTURE NATIONAL NATIONAL
POLICY 1-3 COMMODITY AGRICOMMODITY

POLICY POLICY

• Minerals • Palm Oil PLUS • Pepper
• Pineapple • Rubber • Kenaf
• Tin Ore • Timber • Jatropha
• Rubber • Cocoa • Sago
• Palm Oil • Tobacco • Biofuel
• Cocoa
• Forestry
• Tobacco

• Pineapple • Cooking
• Forestry Oil Price
• Minerals Stabilisation
Scheme
MINUS
MINUS
2004
2016

9

SUSTAINABLE COMMODITIES There are five councils under MPIC which were
FOR A BETTER FUTURE established to promote market diversification
through compliance to standards and certifications
The agricommodity industry has been one of the as below:
main drivers of the national economy, contributing
significantly to export earnings, creating jobs as well • Malaysian Palm Oil Council
as providing income, particularly to smallholders.
• Malaysian Palm Oil Certification Council
As the need to gain more transparency and
sustainability in the agricommodity chain becomes • Malaysian Rubber Council
more apparent, MPIC plays a major role in
ensuring the agricommodity industry, which • Malaysian Timber Council
comprises of oil palm, rubber, timber, cocoa,
pepper and kenaf is well-regulated. • Malaysian Timber Certification Council

There are six Agencies under MPIC established to
implement research, development, commercialisation
and innovation (R&D&C&I) and to ensure the
competitiveness of agricommodity products as
follows:

• Malaysian Palm Oil Board
• Malaysian Rubber Board
• Malaysian Timber Industry Board
• Malaysian Cocoa Board
• National Kenaf and Tobacco Board
• Malaysian Pepper Board

AGENCIES UNDER MPIC COUNCILS UNDER MPIC

MALAYSIAN PEPPER BOARD

10 Growth Through Sustainability

Vision To make Malaysia a competitive
Mission and sustainable agricommodity
leader in the global market for
shared prosperity

Enhancing Malaysia’s global
competitiveness through high
value and sustainable
agricommodity products

Objectives

1 To ensure the ecosystem of agricommodity development
thrives sustainably and fairly

To strengthen agricommodity’s competitiveness through

2 production of high value added products, conforming to current
and future quality, environmental, health and safety standards
To optimise agricommodity’s Research, Development and

3 Commercialisation capabilities and effectiveness through
promotion of innovation and local talent

4 To magnify agricommodity’s contribution to
Gross Domestic Products (GDP) growth that catalyse
the socio-economic development

5 To accelerate and retain high impact investment growth
along the agricommodity value chains

6 To shape consumer trend of agricommodity products
as preferred choice domestically and globally

7 To instill patriotism among Malaysians on the importance
of agricommodity sector for the country

11

ENABLING SUSTAINABLE GROWTH
OF THE INDUSTRY

Over the years, MPIC through its various agencies has
implemented programmes and incentives to ensure
the adoption of best management practices, increase
the production and consumption of biodiesel and
provide security for the palm oil sector as well as
reduce dependency on fossil fuel.

Closer to home, MPIC also provides the necessary
support aimed at improving the operational
efficiency of the industry’s supply chain and
safeguarding the welfare of smallholders so
they will benefit from the use of technology. This
effort is very much in line with the Ministry’s efforts
to empower the smallholders and to bring the
nation’s agricommodity industry to greater heights.

BIOFUEL KENAF & TOBACCO

1 BILLION 329 MILLION
1% 1%COCOA
PEPPER
6 BILLION
121 MILLION
4%

TIMBER 14%

22 BILLION RM152BILLION 48%

PALM OIL

73 BILLION

32%

RUBBER

49 BILLION

12 Growth Through Sustainability

Among the programmes and incentives are:

The Malaysia Sustainable Palm Oil (MSPO) Certification Scheme which
is the national scheme in Malaysia for oil palm plantations, independent and
organised smallholdings, and palm oil processing facilities to be certified against
the requirements of the MSPO Standards. MSPO certification has been made
mandatory commencing January 2020.

Rubber Production Incentive Scheme (IPG) - The IPG scheme was set out
to pay smallholders in the country a pre-determined amount of money for
every kilogramme of rubber produced when rubber prices fall under a set limit.

The Malaysian Timber Certification Scheme is a voluntary scheme that
provides independent assessment for forest management and chain of
custody certification to ensure the sustainable management of Malaysia’s
Permanent Reserved Forests (PRF).

The National Biodiesel Programme promotes greater domestic usage of palm
oil that will stabilise crude palm oil prices.

• In February 2019, the B10 programme (10 per cent biodiesel blend) was
successfully implemented nationwide for the transport sector, followed by
the B7 programme (7 per cent biodiesel blend) for the industrial sector in
July 2019. Both programmes consume a total of 761,000 tonnes of biodiesel
annually.
• In February 2020, Malaysia replaced the B10 programme with B20 programme
for the transport sector and boost biodiesel consumption to 1,068,000
tonnes annually.

13

TIMBERMALAYSIA’S AGRICOMMODITY ACHIEVEMENTS 2020 PALM OIL
LWaorogdeestn1 FExurpnoirttuerreof2thIn 2020, Malaysia’s agricommodity achieved significant industry’s milestones in#2LargaensdtEPxrpoodrutceerr
the rubber, palm oil, pepper, cocoa and timber sectors.

RUBBER
#1

Maker and Exporter of Rubber Gloves
(over 60 % market share)

MALAYSIA’S
AGRICOMMODITY
ACHIEVEMENTS

2020
LaPrrgoedstucerPEPPE5Rth
COCOA
GriLnadregrest6th

DIVISION

Strategic Planning and International Division, MPIC

CONTACT NUMBER

+603 8880 3498

E-MAIL

[email protected]

WEBSITE

www.mpic.gov.my

14 Growth Through Sustainability

MPIC TRADE & BUSINESS PROGRAMMES
EXPO 2020 DUBAI

WEEK 17 23 - 29 JANUARY 2022

THEMATIC FOCUS
SUSTAINABLE AGRICOMMODITY (NON-FOOD SECTOR)

LEAD MINISTRY
Ministry Of Plantation Industries & Commodities Malaysia

LEAD AGENCY
Malaysian Timber Council (MTC)

WEEK 19 6 - 12 FEBRUARY 2022

THEMATIC FOCUS
SUSTAINABLE AGRICOMMODITY (FOOD SECTOR)

LEAD MINISTRY
Ministry Of Plantation Industries & Commodities Malaysia

LEAD AGENCY
Malaysian Palm Oil Council (MPOC)

15

PALM OIL

- Elaeis guineensis -



Malaysian Palm Oil Board:

Securing
Malaysia’s Oil
Palm Industry

MPOB is a government agency entrusted to serve the country’s oil palm industry. Its primary role is
to promote and develop national objectives, policies and priorities for the wellbeing of the Malay-
sian oil palm industry. It was incorporated by an Act of Parliament (Act 582) and established on 1
May 2000, taking over, through a merger, the functions of the Palm Oil Research Institute of Malay-
sia (PORIM) and the Palm Oil Registration and Licensing Authority (PORLA).

Each of these organisations had been servicing LEADING THE INDUSTRY’S SUSTAINABILITY
in the oil palm industry for more than 20 years. It & PRODUCTIVITY
was to render more effective services and give
greater national and international focus to the As the custodian of the Malaysian oil palm industry,
industry that MPOB was instituted. MPOB plays an important role in the industry’s
growth and ensuring the sustainability and
MPOB’s functions include: productivity of the entire value chain.
mplement policies and development
programmes to ensure the viability of the oil palm MP continually places importance on D and
industry of Malaysia. embraces multi-disciplinary strategies to maximize
onduct research and development related to the synergies between economic development and
oil palm industry. environmental stewardship to ensure future growth
icense, regulate and coordinate all activities is carried out within a sustainable framework.
related to the oil palm industry.
Develop, promote, commercialise research Mandatory Implementation of
findings, provide technical advisory services to
the oil palm industry. Malaysian Sustainable Palm Oil (MSPO)
ollaborate and coordinate with national and
international organisations to strengthen the oil Certification Scheme
palm industry of Malaysia.
rganise training and human resources n anuary , MP implemented a mandatory
development programmes in accordance to the
needs of the oil palm industry. MSP certification scheme, ma ing it the irst il
esource and information centre of the oil palm
industry in disseminating research findings and Palm Sustainability ertification Scheme being made
information on oils and fats.
mandatory in the world.

MSP standards is a national certification standard
established by the Malaysian government and
developed based on consultation with Malaysian
palm oil industry and multi-stakeholders input. It
aligns the management of palm oil production with

18 Growth Through Sustainability

many existing national laws and regulations. The ccelerating MSPO certification or
standard was launched to assist industry players smallholders
in complying with sustainability requirements, Independent smallholders play an essential role
including smallholders and small-medium in ensuring that Malaysian palm oil is sustainably
producers, who technically could not afford to produced. These are several initiatives to accelerate
comply with other international palm oil MSP certification among the smallholders
sustainability-related certifications.
a) Strict Enforcement Actions
The Malaysian Standard (MS) on MSPO was ssuing warnings, legal actions and suspension
or revocation of MP icense against industry
published on September and officially including smallholders who have not begun or
implement MSP ertification
announced by the Malaysian Deputy Prime Minister
b) MSPO Campaign & Promotional Activities
on 19th November 2013 during the MPOB ollaboration campaign with State and ffice

nternational Palm il ongress and hibition to promote compliance on land rights issues
Massive campaign and promotion on MSP in
P P . Malaysian Standard MS for MSP is social media and mass media

registered under the Standards Malaysia as MS c) MSPO Mobile Counters
Providing MSP mobile counters across the
2530:2013. The requirements of MSPO Standards country to cater to any enquiries related to
MSPO
covers the local and international sustainability Disseminating information and aggressive
promotion on MSPO
criteria applicable to smallholders, plantations and
Planting million orest trees species ithin the
palm oil mills, where most of the best practices next ten (10) years
The planting of million trees has been identified as
are carried out. The sustainability requirements one of the programmes under the ove My Palm il
campaign, which involves reforestation activities. The
for the development and operation of these programme was launched in 2019 and aimed to plant
1 million forest species trees within ten (10) years. An
sectors are embedded within the seven MSPO area of , hectares of degraded forest has been
identified for this reforestation programme.
principles. Implementation of the scheme shall
Supporting Conservation nitiatives via
drive the industry towards producing sustainable Malaysian Palm Oil reen Conservation
Foundation (MPOGCF)
palm oil products that promote Malaysian palm oil MP was established to encourage and support
conservation initiatives and sustainable practices
branding in the local and international markets. As a within the palm oil industry. It also aims to enhance
conservation, biodiversity and sustainability efforts
credible standard, MSP addresses sustainable that benefit Malaysian palm oil producers and
consumers worldwide.
development as its requirements reflect the United
Since its establishment, it has initiated and supported
ations ood and Agriculture usiness Principles. reforestation programmes of degraded forests
and provided funding assistance for wildlife and
stablishing Policy on Sustainable Oil Palm biodiversity research and assisting NGOs in funding
To enhance the sustainability of the Malaysian oil wildlife conservation activities, biodiversity, and best
palm industry, Malaysia s Ministry of Plantation sustainability practices in oil palm plantations in
ndustries and ommodities MP has established Malaysia.
a new policy to ensure the sustainable planting of oil
palm, focusing on the environmental perspective.

During the io Summit , Malaysia has

committed to retain at least 50% of its

landmass as forest and tree cover as a matter

of policy. This policy will assist State Authorities

in allocating the areas under oil palm planting in

their respective states. The current forest cover in

Malaysia is 55.3%. It is vital for the government to

introduce the commodities policy on sustainable

oil palm and ensure that all industry players adhere

and implement the policy to uplift the Malaysian oil

palm industry as a whole and remain competitive in

the global oils and fats market.

Some of the key features of the policy are as follows:
a apping oil palm planted area in Malaysia at

maximum 6.5 million hectares
b) No more conversion of forest into oil palm

planting area
c) No new planting on peat
d) Establish a formal map that is publicly accessible

to show the total oil palm planted area for the
whole region in Malaysia.

19

Some of the MP projects include

a orest ehabilitation of rangutan Habitat

(1 Million trees)

b) Bornean Orangutan and Pygmy Elephant Survey

and onservation

c Malayan Tiger onservation

d) Elephant Grass Planting Programme

e) Borneo Elephant Sanctuary

f unding ildlife escue nit in Sabah.

ntroduction on Sustainable evelopment ocus

rea in MPO esearch Plan

To further illustrate its commitment towards

sustainable development, in , MP included a

Sustainable Development ocus Area in its esearch

Plan. This initiative emphasises downstream value higher antioxidant potency and provide more
incredible health benefits than the a-tocopherol form
addition and a well-balanced approach between of vitamin E. Its highly potent antioxidant properties
have many health-benefitting features such as
Ps people, planet, profit , i.e. environmental radioprotection, lowering the ris of cardiovascular
diseases, regulating bone aging and immune system,
sustainability, value addition and socioeconomics. reducing cancer risk factors and many more.

DRIVING THE PALM OIL INDUSTRY FORWARD ighly igestible Palm ernel Ca e (P C)
VIA TECHNOLOGY
For Animal Feed
Technology plays a crucial role in driving the palm oil
industry forward and ensuring that it produces high n , a premium grade P with shell content
value-added products for the industry to remain
relevant. below 4% was ready to be commercialised. This

ver the years, MP has produced and ventured premium P contains low shell , high crude
into new technologies for commercialisation by the
industry players. protein . and low crude fibre ,

therefore highly digestible by chicken at a ratio

between 30%-50% and ruminants (>50%). It is also

a good source of energy protein for the animals.

Margarine Structured y Palm Oil ased The substitution of premium P in feed formulation

Structural at Suitable or e rigerated nd reduces imported raw materials corn, soybean,

on e rigerated etail Table Margarine fish meal and wheat pollard .

Segment Special eatures

This technology was introduced in , where high cost-saving and stabilising the price of feed

its formulation is suitable for refrigerated and promotes the economic growth of Malaysia

non-refrigerated margarine segments. It is used contains low shell , high crude protein

in a vast range of temperate from - . This . , low crude fibre

technology also eliminates the requirement to highly digestible by chic ens and ruminants

have two dedicated formulations for refrigerated a good source of energy and protein

margarine, which is applicable from - and reduce the usage of imported raw materials,

non-refrigerated margarine, which is applicable from e.g. corn, soybean, fish meal, and wheat pollard.

-.

Besides being stable in the temperature range of Palm ased Specialty Chemical or ubricant
refrigerated and non-refrigerated margarine, it is also Increasing environmental and climate change
awareness have shifted the market trend from
plant-based and cost-effectively formulated. petroleum-based materials to more
Since it does not require refrigeration, it also reduces biodegradable and renewable chemicals.
Stringent regulations by the government have
the cost of transportation and storage. accelerated the adoption of bio-based lubricants.
n , a sustainable bio-based lubricants was
Palm Tocotrienols developed with special features such as eliminating
the need for acid catalyst and solvent, utilising a
Palm oil is known to have among the highest content more sustainable and energy efficient process and
low production cost.
of Vitamin among oils and fats. n , MP

discovered tocotrienols, one of the compounds in

the vitamin E group that originated in crude palm oil.

Several studies have also proven that tocotrienols

possess unique biological properties, including

20 Growth Through Sustainability

Palm based iosur actant rom ermentation
Sophorolipid biosurfactants are widely used in personal care and nutraceutical
products. This technology focuses on the large scale production of sophorolipids
based on the refined, bleached and deodorised D palm olein. Several attractive
features of sophorolipid biosurfactant are its environmental compatibility, high
biodegradability, low to icity, high selectivity and specific activity in a broad range
of temperature, pH and salinity conditions. n , this technology was introduced
and had several benefits, such as utilising a mild temperature bioreactor, accessible
processing parameters and high productivity and recovery.

MOVING FORWARD

Maintaining The ighest uality or Sustainable Malaysian Palm Oil
As the custodian of the Malaysian oil palm industry, MP ensures that the
industry will remain competitive in the international arena through its research
development D activity. esides developing high-yielding oil palm materials and
various specialised traits, MP always focuses on technological advancements
to ensure that every drop of Malaysian palm oil produced is safe, sustainable,
traceable, wholesome, and achieves the highest standard and quality mar .

COMPANY HIGHLIGHTS evelopment
ndustry s ecognition or Continued ro th

YEAR ACHIEVEMENTS
2020
Malaysian Technologies Expo 2020 (The 19th International Expo on Inventions and Innovation)
Two old medals, two Silver medals and two ronze medals

est Poster at the ational onference on Precision iotechnology in Agriculture Virtual onference

Main Award ategori Anugerah sahawan Penyelidi at the Malaysia ommercialisation ear M

T - Three old medals, one Silver and est of The est nvention Award M PA

Annual South and South ast Asia nnovation orum - larivate South and South ast Asia nnovation Award
for overnment esearch rganisation ategory Malaysia

2021 Malaysia Technology Expo (MTE) 2021 (Virtual) - One Silver medal and one Bronze medal

est Poster Award - Plantation ategory at the th uala umpur nternational Agriculture, orestry and
Plantation A P

ournal of leo Science est Author Award of the ear by the ournal of leo Science ommittee

DIVISION Advisory Services

Product Development

Division, MP

CONTACT NUMBER

+603 8769 4400

E-MAIL

[email protected]

WEBSITE

www.mpob.gov.my

21

LorMalaysian Palm Oil Council:
Leading The Promotion
of Malaysian Palm Oil

The MPOC is tasked to promote the market expansion of Malaysian palm oil and its products by
enhancing the image of palm oil and creating better acceptance of palm oil through awareness of
various technological and economic advantages (techno-economic advantages) and environmental
sustainability.

The ouncil has set up a networ of offices all over The plantation industry, particularly palm oil, is one
the world, mainly in hina Shanghai , ndia of the main pillars of the Malaysian economy. The
Mumbai , Pa istan ahore , Middle ast stanbul palm oil sector has contributed significantly
and airo , urope russels and ussia , South towards providing a continuous inflow of e port
Africa ohannesburg and Americas ashington earnings through the export of raw commodity and
D to support, promote and venture into new areas valued-added products to the global mar et. n ,
for the industry. palm oil contributed S . M . billion in
export earnings for Malaysia and accounted for 26%
The new regional office in eddah, Saudi Arabia, of the world’s palm oil production and 34% of total
palm oil exports.
launched in September , oversees the

expansion of the Malaysian palm oil market in the

Middle East and North Africa region.

22 Growth Through Sustainability

CREATING BETTER ACCEPTANCE OF The Malaysian Palm il ouncil MP plays a ey
MALAYSIAN PALM OIL THROUGH THE role in promoting the palm oil industry in Malaysia.
HIGHEST STANDARDS OF SUSTAINABILITY Together with MP , MP and MP , it wor s to
ensure mar et acceptability of the MSP certification
The Malaysian palm oil industry aspires toward at the international market.
the highest standards of sustainability. Good
Agricultural Practices (GPA) and technological A major initiative that has been underta en
improvements are in place to ensure that activities together with MP includes ma ing certification
have minimal impact on the environment and mandatory in oil palm management for all industry
biodiversity. players in Malaysia including smallholders via its
mandatory MSP ertification Scheme.
Plantations, mills and refineries also churn out a
wide variety of by-products from waste. Oil palm The MSP ertification Scheme is the national
trun s are used to produce high-quality wood, while scheme for oil palm products originating from
pruned fronds are processed for animal feedstock. Malaysia. The scheme brands Malaysian palm oil
Used palm cooking oil is converted to eco-friendly as sustainably produced and of high quality in the
biodiesel. These advances demonstrate that the international mar et. urthermore, mar ets are able
industry is serious about environmental protection. to differentiate certified and sustainably produced
It remains open to collaboration in raising its Malaysian palm oil from the ones originating from
sustainability standards as a guardian of natural other countries.
resources.
ntroduced as a voluntary requirement in , two
The Malaysian government has long insisted on
sustainable agricultural practices that maintain a years later the Malaysian Government made a
balance between socio-economic development and
conservation of the environment. It has enacted decision to implement MSP certification on a
stringent laws and regulations that make the
Malaysian palm oil industry one of the most mandatory basis beginning 1 January 2020. This is
highly-regulated agricultural sectors worldwide.
Malaysia also assures the world that it will not also a response to the growing concerns in major
retreat from its 1992 Earth Summit pledge on
sustainable development – it will keep at least 50% of importing mar ets for certified sustainable palm oil
its total land area under permanent forest.
and good forest management practices.

23

CONSERVING THE WILDLIFE

The idea for the setting up of the Malaysian Palm il ildlife onservation und

MP was mooted by the Malaysian Palm il ouncil MP in during

the period when the Malaysian palm oil industry was facing one of its biggest

challenges in countering negative perception campaign of its palm oil.

The MP was thus launched with an initial funding of M million of which

M million was a grant from the Malaysian government and the balance of

M million was provided by the palm oil industry. MP is the fund

administrator, which also has the overall responsibility to manage the various

conservation projects funded through MP . unds are provided for

e ecution of projects and studies on wildlife, biodiversity and environmental

conservation while factoring the overall impact of the palm oil industry on these

parameters.

n , the Malaysian Palm il reen onservation oundation MP
replaces the Malaysian Palm il ildlife onservation und. t supports the
commitment and initiatives of the Malaysian Palm Oil industry to conserve the
environment.

MALAYSIAN PALM OIL – THE GOLD STANDARD

The story of palm oil trade and consumption stretches bac to more than ,
years. New facets are being revealed through research and development on the
dietary value, health benefits and economic uses of this priceless commodity.

esearch evelopment

Malaysia retains its position as the world s leading centre for D for oil palm and

palm oil since the 1920s. The initial work on breeding was gradually expanded to

cover milling and refining processes. Since the s, the focus has moved on to

nutrition and biomass, as well as renewable energy.

ealth
The balanced fatty acid composition of palm oil – along with its high content of
Vitamin tocotrienols, tocopherols and provitamin A carotenoids help ma e it a
wholesome and nutritious vegetable oil. These constituents have a protective role
against cellular ageing, atherosclerosis and cancer.

24 Growth Through Sustainability

Socio economic i eline
The Malaysian palm oil industry has been a vital source of e port earnings,
contributing an average of M . billion annually over the past five years. t
has played an integral role in eradicating poverty and enhancing living standards.
Today, about million people in Malaysia have directly and indirectly benefitted
from the palm oil industry, including over , small farmers.

FUTURE FOCUS

Southeast Asia, the Asia Pacific and Middle ast have shown higher potential as
new markets for Malaysian palm oil. Their gradual increase in imports has been
due to the competitive price, combined with the reduced domestic production and
smaller imports of other soft oils. Africa and the entral Asian egion have been
identified as emerging mar ets for Malaysian palm oil, with abundant untapped
potential.

DIVISION

Mar eting and Mar et Development, MP

CONTACT NUMBER

+603 7806 4097

E-MAIL

[email protected]

WEBSITE

www.mpoc.org.my

25

Malaysian Palm Oil Certification Council:

Ensuring Reputable
Certification For
Malaysian Palm Oil

Mala sian alm il ertification ouncil M is an inde endent non rofit
organisation established in December 2014 to develop and operate the
Mala sian Sustainable alm il MS ertification Sc eme. M is
governed by a Board of Trustees and started its operation in October 2015.

The objectives of MP establishment are as follows

To create, maintain and administer a fund to be used for the purposes of
establishing and operating a sustainable palm oil certification scheme in Malaysia
To engage with non-governmental organisations, higher learning institutions,
trade associations, and accreditation and certification bodies in Malaysia
To establish a mechanism for the certification of entities complying to sustainability
requirements of auditable sustainability standards which includes applicants’
certification processing, formulating rules with regards to the use and issuance of
certificates, approval of assessors certification reports, appeals and complaints
procedures, and certification costs.

26 Growth Through Sustainability

VISION

To be recognised as a leading organisation for
palm oil certification

MISSION

To establish and operate a credible and
internationally recognised national palm oil
certification scheme towards promoting
sustainable management of oil palm in Malaysia.

M C T C T O M TO O its uncertified counterpart, thus ensuring the
PALM MANAGEMENT value of certification along the supply chain to
customers.
Mandatory MSPO Certification Scheme
As demand for palm oil increases and expansion of tilising Technology or Transparency and
oil palm plantation is inevitable, the impact of forest Traceability
loss becomes more apparent. There were also
growing concerns in major importing mar ets for MSPO-Trace
certified sustainable palm oil and the importance of MSP -Trace, designed and developed by MP
good forest management practices. is a centralised software platform to monitor
sustainability, traceability and transparency of the
Thus, in May , the Malaysian overnment Malaysian Palm il Supply hain. The Traceability
Module is integrated with the ertification Module
agreed to enforce MSP certification as to enable certified material tracing from plantation,
throughout the supply chain, from milling,
mandatory beginning 1 January 2020. This refining, processing to manufacturing. Tracing wor s
through the combination of individual profiles
certification scheme was first introduced as a of all entities, supplier buyer databases, sales
announcements, and transaction records which
voluntary requirement in 2015. connect the entire value chain. It is designed to
deliver confidence and credibility to the consumers
The mandatory implementation of MSPO and end users that the palm oil raw material
certification demonstrates Malaysia s commitment originated from sustainably managed oil palm
towards the production of sustainable Malaysian planted areas.
palm oil. n addition, MSP certification provides a
host of benefits, including safeguarding the
environment and ensuring social compliance and
enhancing productivity through optimising yields
with the application of good agricultural practices.
This translates into higher income and smallholders’
welfare improvements who accounted or close to
30 percent of the planted area.

Oil Palm Management Certi cation
This is a process that sets the standards for
responsible oil palm plantation management of
smallholdings and palm oil processing facilities.
The certification process is run by an accredited
third-party certification body to assess and verify
that the oil palm management is in compliance
with the standards’ requirements as prescribed in
the MSPO standards.

Supply Chain Certi cation
Supply chain certification applies to parties
mainly companies that process, trade or
manufacture palm oil from certified oil palm
management units. It shows the link of the palm
oil product from the mill to the final product,

eeping certified palm oil product separate from

27

STAYING RELEVANT THROUGH
CERTIFICATION

Moving forward, through its certification scheme,
MP will ensure that the palm oil industry
remains relevant and becomes one of the
preferred palm oil brands in the international
mar et. MP will ensure that Malaysian oil palm
players are committed to best agricultural practices
in accordance with the national law in oil palm
cultivation and comply with the requirements for
sustainable palm oil production.

n this regard, MP has developed and launched
a revised MSPO standards ith strong igh
Conservation alue ( C ) Social mpact
Assessment and Green House Gas (GHG)
elements. The organisation also developed an MSPO

iomass Standard and efforts are being made for the
MSPO to be accepted as a scheme under the Japan

eed in Tariff ( T) Scheme or ene able nergy

MP embraces technological advancement and
innovation including in the development and
adoption of loc chain technology to meet the
traceability requirements of the country’s palm oil
industry via its MSPO Trace system

Besides ensuring industry players’ compliance with
international sustainability requirements that
encompass the whole supply chain — from
growers and millers to traders and retailers, MP
also plans to increase the uptake of MSPO Supply
Chain Certification (SCC) and the use of MSPO
on-product logo domestically and internationally.

Also in the pipelines are the development and launch

of MP Sustainable rganisation Strategy and

5-years strategic direction and the initiatives towards

attaining the ISO9001 Quality Management System

for MP .

28 Growth Through Sustainability

AGENCY HIGHLIGHTS

MSPO certified areas and processing acilities MSPO Trace System the first national trace
system in the orld
As of December , the total oil palm planted MP developed a traceability-to-plantation TTP
system known as the MSPO-Trace that enables
area and palm oil mill certified under MSP il Palm palm oil product tracing to its origin. This is the first
national traceability system available in the world.
Management ertification PM is , , . It also provides other features that could promote
transparency in MSP ertification Scheme.
hectares (83%) and 428 palm oil mill (92%)

respectively. n top of that, the total processing

facilites mill, refinery, oleochemical, biodiesel,

ernel crusher certified under MSP Supply hain

ertification S is unit .

MSPO adopted as tools or sustainable sources

Mo ith China reen ood evelopment Centre or To yo Olympics
n , MP signed an Mo with hina reen
ood Development entre on ooperation in The Malaysian Sustainable Palm Oil (MSPO)
onnection with hina reen ood ertification
Scheme and Malaysian Sustainable Palm Oil ertification Scheme has been adopted as a tool for
ertification Scheme.
the Tokyo 2020 Olympics and Paralympic Games

Sustainable Sourcing ode for palm oil since une

2018.

DIVISION

orporate Affairs, MP

CONTACT NUMBER

+603 5569 9676

E-MAIL

[email protected]

WEBSITE

www.mpocc.org.my

29

RUBBER

- Hevea brasiliensis -



SMaalafyseiagn RuubaberrdBoianrd:g
Malaysia’s Rubber
Industry

Continuing from the long establishment of the Rubber Research Institute
of Malaysia (RRIM), for over 20 years, the Malaysian Rubber Board (MRB)
has been the custodian of the rubber industry in Malaysia. Its primary
objectives also include to assist in the development and modernisation of
the Malaysian rubber industry in all aspects from cultivation of the rubber
tree, the extraction and processing of its raw rubber, the manufacture of
rubber products and to the marketing of rubber and rubber products.

Established on 1 January 1998, MRB’s key roles include ensuring that industry
players conform to policies and priorities for the orderly development and
administration of the rubber industry of Malaysia which include licensing activities,
standards development, enforcement and certification of rubber related sectors.
MRB strives to be the leading organisation in all areas of the rubber industry for
the benefit of society.

TAPPING ON TECHNOLOGY FOR SUSTAINABLE BUSINESS
MRB is cognisance about the importance of embracing green rubber technologies
as it will not only be a boost for the environment but also a compelling cost
proposition. Regulatory pressure is also forcing the rubber industry to reduce
waste and develop a sustainable vision for the future.
Through our intensive research studies and coupled with technological
advancement, MRB has made inroads into the development of environmentally-
friendly rubber technologies and products using natural materials from renewable
sources.

32 Growth Through Sustainability

A. Ekoprena® & Pureprena®
Eco-friendly and sustainable material from natural
rubber for tyres and other high value applications,
offering the automotive and other related industries
with green material that emits less carbon dioxide
and naturally friendlier to the environment.

B. Rubberised Roads
On top of producing a higher quality road surface, the
rubberised roads offer lower maintenance and better
safety compared to those of the conventional road.
On the home front, the product increases demand
of local rubber consumption, hence increasing local
rubber prices.

In addition, rubberised roads have better properties
than conventional roads, and are capable of
minimising road maintenance and road surfacing for
up to twice the lifespan of conventional roads.

Last year, rubberised roads (CMB and CMA) won the
Ministry of Science, Technology and Innovation of
Malaysia (MOSTI) Malaysian Commercialisation Year
Overall Award 2020.

C. Seismic bearings
Seismic rubber bearings are able to protect structures
and its contents from earthquakes with magnitude
up to 7.5 on the Richter scale, depending on the
application. In summary, seismic bearings are able to
minimise damage to structures during earthquakes.

D. Green tyres
Green tyres can be formulated to have longer lasting
thread wear as compared to normal tyres. The real
advantages of green tyres include fuel saving, noise
reduction, recyclability and safety. Typical saving
of fuel consumption from the use of green tyre is
about 15% over the lifespan of the tyre. This is due
to reduction of up to 35% in rolling resistance of
green tyres. Green tyres are capable of reducing
approximately 3.2 meter of braking distance on a
typical tarmac surface. These tyres can also contribute
to reduction of 1.75 tonnes of carbon dioxide over
the lifetime of the tyre (approx. 50,000 km).

The high quality passenger vehicle tyres are made
from sustainable materials and are in line with MRB’s
‘green’ initiative and goals.

E. RRIM Hydrobest™
RRIM HYDROBEST is a water based latex stimulant
with dual purposes - to increase tree productivity
and minimising the occurrence of dryness incidence.
It is an ethephon-based formulation and has
been tested on various rubber clones. Among the
advantages of RRIM HYDROBEST are improvement
of tree productivity, low partial dryness incidence
at the tapping panel, good renewed bark, frequent
application compared to ethephon and can be
applied from the beginning of rubber trees tapping.

33

F. RRIMNIAGA transparent tendering process by keeping tender
RRIMniaga is a suite of 3 applications comprising bids information strictly confidential throughout the
of mobile app, web app and dashboard, produced tendering process which would enhance tenderers’
in-house by the Malaysian Rubber Board (MRB). The confidence.
mobile app is used by Malaysian rubber dealers for
recording comprehensive information on rubber Other Initiatives
transactions (buying and selling) including time and As the custodian of Malaysia’s rubber industry, MRB
GPS coordinates. The web app produces reports also ensures that the smallholders are well supported
on buying and selling transactions and stock take and new incentives are being introduced to increase
for dealers. Additionally, RRIMniaga also enables domestic latex production.
efficient integration for disbursement of production-
based incentives by the government such as IPG This year, MRB introduces the Insentif Pengeluaran
(rubber production incentive). Lateks (IPL) programme to encourage local rubber
producers (especially smallholders) to produce
G. RRIM Sole™ latex instead of cuplump. This is to increase local
This is a green and patented antistatic footwear latex production to support the Malaysian latex
technology featuring oil/DOP-free formula, unique manufacturing industry.
natural colour appearance and excellent oil and
abrasion resistance that conforms to the ISO 20345 The Rubber Industry Transformation Project
standard. (TARGET) through the development of Rubber Crepe
Processing Centers nationwide has been introduced
Sofil in 2021 to the upstream rubber industry. The
MRB has developed the Soil Filling Machine (SOFIL) project is specifically designed to address the issue
to help the nursery industry thrives in producing of marketing of smallholders’ rubber production.
quality seedlings for rubber replanting programs. Overall, the project aims to transform the smallholder
The machine is semi-automated where the planting sector by realising an integrated value chain of
medium will be put into a container and evenly commercial-scale rubber supply with a cluster
mi ed with fertiliser before being filled into a processing approach and profit-sharing at the level
polybag. The same conventional process requires of smallholders, cooperatives and entrepreneurs.’
6 to 8 workers to produce 2,000 polybags a day.
With SOFIL , the process only requires two manpower Through its RRIMniaga initiative which was
for the same amount of production output per day established in 2020, MRB developed a mobile
and it could also scale up to 3,000 polybags a day. application to ease rubber trade and is mandatory to
This is a huge step in automation mechanisation be used by licensees, buyers and dealers registered
for the rubber industry. SOFIL also won the Silver with MRB.
Medal in the International Invention, Innovation &
Technology Exhibition, Malaysia. This application will record all rubber trade
transactions and is connected to the IPG system that
I. MyROL generates purchase receipts electronically. Using this
My Rubber OnLine (MyROL) is a web-based system system, all IPG payments will be credited directly to
developed in-house by the Malaysian Rubber Board the eligible applicant’s (smallholders) bank account
(MRB) to provide an alternative tendering system without going through the manual (and much slower)
from conventional tendering process that runs IPG application process.
manually for rubber collectively gathered by group
of smallholders at the farm levels. My offers a ther initiatives that directly benefitted the
smallholders include the Bantuan Musim Tengkujuh
(BMT) or Monsoon Aid which provides yearly
assistance to rubber smallholders to aid them
financially during the monsoon season. Another
initiative is the Rubber Production Incentive (IPG) - an
incentive in the form of payment to smallholders for
each kilogramme of rubber sold when the average
monthly farmgate price of rubber falls below RM2.50.
This is to encourage smallholders to continue tapping
rubber even though the market rubber price is lower
than RM 2.50 per kilogramme.

34 Growth Through Sustainability

MOVING FORWARD

oing into the future, M has laid down a five-year strategy - will cover
four main areas as follows:

1. Development and adoption of technologies for upstream sector to increase
tree productivity

2. Sustaining and enhancing Malaysia rubber products technologies through
R&D and technical services

. Transforming Malaysian rubber industry through effective economic and
management services

4. Moving towards generating income for self-sustaining (self-funding) for
smallholders.

ACHIEVEMENTS

Over the years, MRB is proud to be recognised for its contributions and
achievements in the industry. Among the awards received include winning
the overall title (Grand Prize) for the Malaysian Commercialisation Year 2020
competition organised by the Ministry of Science, Technology and Innovation of
Malaysia M ST for its uplump Modified itumen M and uplump Modified
Asphalt (CMA) rubberised road in 2020 and winning the Lawrence D’Eicher Award
(LDE Award) 2020 for the development of standards for rubber and rubber
products. The MRB has participated in the yearly ITEX competition for over
15 years and have never failed to obtain multiple medals every year.

DIVISION

Corporate Communications Unit, MRB

CONTACT NUMBER

+603 9206 2000

E-MAIL

[email protected]

WEBSITE

www.lgm.gov.my

35

MSatlaryesiatncRhubibnergCouTnchil:e Reach
of Malaysian Rubber
Products To The
Global Front

The Malaysian Rubber Council (MRC), formerly known as Malaysian Rubber Export Promotion
Council, was incorporated on 14 April 2000. MRC is governed by a Board of Trustees appointed by
the Minister of Plantation Industries and Commodities.

Its main role is to undertake market promotion of M also has an office in ondon to facilitate e ports
quality Malaysian rubber and rubber products in of Malaysian rubber products into Europe by
the world markets. MRC has footprints in several monitoring developments and changes in policies
countries worldwide including the US, Europe, China, and new regulations concerning the importation
India and the Middle East. and use of rubber products in Europe.

The SA office was set up as a centre of information The latest regional office was established in eddah,
on Malaysian rubber and rubber products for the Saudi Arabia in 2021 to further promote quality
American public and end users, particularly in Malaysian rubber and rubber products in the Middle
addressing the concerns regarding latex products, East and East Africa markets.
especially latex gloves, through the dissemination of
balanced and accurate information. As the agency being tasked to advocate quality and

M s global offices also serve to assist Malaysian sustainably produced rubber products, MRC’s role
companies seeking to grow their business in a
particular market, for example in China and India. was e panded effective August to ta e on a

broader portfolio.

36 Growth Through Sustainability

This is reflected in the e pansion of the ouncil s
roles in capacity building of the downstream
rubber industry, domestic promotion, talent
development and advanced technology adoption
as well as investment promotion of Malaysia’s
rubber industry.

Latex Threads Gloves Catheters

2020: RM556 million 2020: 35,258 million 2020: RM479 million
2019: RM536 million 2019: 17,357 million 2019: RM426 million

+3.6% +103.1% +12.5%

Top 3 Export
of Rubber Products

GOVERNING COMMITMENT TO Top 5 Exports Destinations
SUSTAINABLE BUSINESS PRACTICES
United States 78.8%2020: RM12,960 million
In 2021, despite the challenging economic of America
climate worldwide due to the COVID-19 2019: RM7,247 million
pandemic, M further reaffirms its commitment European
towards sustainability by establishing a policy Union 100.5%2020: RM9,369 million
and guidelines on sustainable business
conducts through the integration of Economic, Japan 2019: RM4,673 million
Environmental, Social and Governance (“EESG”)
considerations. United 63.9%2020: RM2,277 million
Kingdom
The policy’s overarching statement ensures that 2019: RM1,389 million
MRC’s activities create long term value for all its China
stakeholders via sustainable development 157.1%2020: RM2,234 million
practices and execute its strategy in a manner
that addresses the EESG risks and opportunities in 2019: RM869 million
achieving business and operational excellence.
82.4%2020: RM2,089 million
With the policy in place, MRC aims to be a
responsible government agency, uphold the 2019: RM1,145 million
highest standards of governance and ethics,
promote sustainable business and practices, limit
negative impact of its business operations to the
environment and build and maintain strong
relationship with its stakeholders.

37

Commitment to Sustainability Sustainability Pillars 3
12
Develop and implement impactful S action SAFETY & HEALTH
plan and initiatives to its stakeholders, as well as EDUCATION ENTREPRENEURSHIP DEVELOPMENT
commit to measuring and monitoring the said DEVELOPMENT DEVELOPMENT
initiatives.
Adhere to approved sustainability plans and 5 Main Areas 3 Main Areas 3 Main Areas
strategic directions, as well as to all applicable pstream on-Managerial ndustry
laws, regulations, and standards. Members
Address environmental challenges and Midstream Industry Smallholders
opportunities in the rubber industry activities. Downstream Members ommunity
Strengthen social well-being and community nternal Smallholders
relationships. Stakeholders
Provide conducive wor ing environment and ommunity
operate in a healthy, safe and efficient manner. ommunity
Maintain effective engagement with all Impact Impact
stakeholders. Impact Enhancing Promoting and
mplement effective governance structure and Bridging the gap entrepreneurship nurturing quality
practice for sustainable development. in education skills and elevate lifestyle &
limitation social economic healthy working
status experience

4 5 6

ENVIRONMENTAL PHILANTHROPY SOCIAL
DEVELOPMENT COMPLIANCE

Sustainability Framework 2 Main Areas 2 Main Areas 2 Main Areas
ndustry Players ommunity ndustry
In 2021, MRC establishes its own sustainability nternal Members
framework with a primary aim of creating ommunity nternal
long-term stakeholder value through the Stakeholders Stakeholders
implementation of an operational strategy that
focuses on economy, environment, social and Impact Impact Impact
governance whilst aligning with MRC’s vision and Advocating and Maximising shared Preparing industry
mission. enhancing value among members in
awareness while organizations, meeting best
Sustainability Approach preserving the employees, practices of Social
environment and stakeholders and Compliance
Embed sustainability in operations promoting community
1 strategy which is in line with the Ministry renewable energy

and Rubber Industry’s mission and
objectives.

Address issues & challenges faced by the
2 stakeholders by identifying the gaps and

bridging the challenges.

3 ncorporate specific strategy to specific
target group.

Develop a framework to measure the
4 programme’s sustainable impact &

outcome.

38 Growth Through Sustainability

USING TECHNOLOGICAL ADVANCEMENT TO COMPANY HIGHLIGHTS
CHART A SUSTAINABLE FUTURE
2019
As the industry becomes more competitive and Launch of the Fund for Automation and Green
exporters are constantly under pressure to meet the Technology (FAGT)
stringent demand of regulators and authorities, MRC MRC Fund for Automation and Green Technology
helps industry players to scale up the value chain to (FAGT) was established to steer the rubber and
become more efficient and sustainable by adopting rubber products industry towards greater
advanced manufacturing and green technologies. automation and promote the adoption of green
technology to achieve sustainability in the
Over the years, MRC has assisted industry players to industry. The fund offers companies that effectuate
embrace automation and the use of renewable sustainable initiatives like renewable energy and
energy resources such as solar, biomass and water. water treatment systems as part of their growth
initiatives. It also enhances the industry’s
Some of the initiatives include: competitiveness and recognises the need to address
the shortage of labour while advocating the need for
1. Simulation Programme to Model Vulcanisation a higher calibre workforce to boost productivity.
Oven in Glove Manufacturing
2020
2. Automatic Inspection Machine to address Inaugural E-Global Sourcing Mission (e-GSM)
trimming issues and reduce waste in rubber MRC created an online business matching platform,
manufacturing namely MRC e-Global Sourcing Mission (e-GSM) for
Malaysian rubber and rubber product manufacturers
3. Reject Glove Collector System – using Vision to meet potential buyers virtually in response to the
Camera to detect reject gloves caused by tearing. COVID-19 pandemic. The e-GSM programme
Besides avoiding human error, the automatic data provided an online platform for global buyers to
collection on production and reject quantities will meet with genuine Malaysian manufacturers virtually
and recorded in the built-in system and sent for to source quality rubber and rubber products from
analysis Malaysia.

4. Automatic Gloves Stripping Machine – using 6 September 2021
robotic arms and enabling machine speed to be Soft launch of Malaysian Rubber Products Virtual
synchronised with production line speed, thus Showcase (MaRViS)
reducing reliance on hard labour and delay MRC has initiated the Malaysian Rubber Products
in work progress and improve number of Virtual Showcase (MaRViS) platform to create an
throughput all-round experience for buyers to reach out to
Malaysian rubber and rubber product manufacturers
5. Solar Photovoltaic Panels installed on top of and exporters. MaRViS is an ideal platform to further
factory’s rooftop to reduce electricity cost facilitate online business engagements related to
Malaysian rubber and rubber products.
6. Biomass Boiler iomass firing steam boiler is
used to produce steam with heat energy. As the Q4 2021
boiler also comes with automatic biomass feeding Opening o M C eddah egional O ce
system, it will enable the boiler to be totally M is e pected to open its office in eddah, Saudi
enclosed to ensure clean environment during its Arabia by the th uarter of . The office facilitates
operation. In addition, the power generated from the export of Malaysian rubber and rubber products
the biomass boiler reduces electricity cost. as well as assists Malaysian companies to grow their
Generating electricity using biomass source business in the Middle East and North Africa region.
will help to reduce the emission of GHG, and
harmful solid waste.

DIVISION

Marketing and Development, MRC

CONTACT NUMBER

+603 2782 2100

E-MAIL

[email protected]

WEBSITE

www.myrubbercouncil.com

39

TIMBER

- Dipterocarp and non-dipterocarp -

Dryobalanops – 8 species
Hopea – 97 species
Shorea – 206 species



GMaelayasiraninTimgbeFr IondrustGrylBooabrda: l
Compliance and
Competitiveness

The Malaysian Timber Industry Board (MTIB) is responsible for leading and developing the Malaysian
timber industry. MTIB is entrusted to coordinate and formulate policies and strategies to develop
the country’s timber industry to ensure competitiveness in the local and international markets. MTIB
was established under the Malaysian Timber Industry Board (Incorporation) Act 1973 [Act 105].

MTIB is responsible for initiating development of the enerally to do everything within the scope of the
various sectors of the timber industry and providing objectives for the betterment and proper conduct
technical, marketing and other forms of assistance of the timber industry
to ensure their continued growth within a rapidly
industrialised Malaysian economy. Therefore, as Over the years, MTIB has achieved many
specifically provided by the Act, MT functions International Organisation of Standardisation (ISOs)
include: recognitions which include the MS ISO 9001:2015
for Quality Management System, ISO/IEC 27001:2013
To regulate and control the trade in and the (Information Security Management System) for its
marketing and distribution of timber; Timber Industry Security Risk Rating Service (MyRisk)
To assist the timber industries as well as to and the ISO/IEC: 17025: 2017 for Formaldehyde
promote trade and marketing of timber; Emission, Mechanical Laboratory and Chemical
To encourage effective utilisation of timber with
emphasis on product diversification and to aboratory Accreditation.
promote improvement and economy in the
methods of processing timber; MT e panded its function by offering testing
To provide technical advisory services and services and processing facilities related to wood
training required to assist in the development of and biocomposites to the industry through its
existing timber industries and the establishment testing laboratories and processing plants at the
of new industries; Fibre and Biocomposite Centre (FIDEC). The testing
To organise and assist in the consolidation of the services cover mechanical, chemical, formalde-
small-scale timber industries and the closer hyde emission, anatomy, polymer, analytical and
integration of the activities of the timber furniture. Currently, 19 scopes of mechanical and
industries generally, so as to achieve greater formaldehyde emission tests have been accredited
efficiency in, and secure a stronger base for, the and comply to the MS ISO/IEC 17025:2017. MTIB is
timber industry as a whole; expanding its accreditation scopes for furniture
To gather information on and maintain records of testing and others to fulfill the needs of the industry.
all relevant matters relating to the timber
industry; and

42 Growth Through Sustainability

ADOPTING SUSTAINABILITY TO PROTECT M T AS Peninsular covers timber and timber
OUR NATURAL RESOURCES products derived from logs that are harvested from
natural and plantation forests whether in Permanent
While developing Malaysia’s timber industry
remains the core objective of MTIB, it places equal eserved orest, State and or Alienated and. t
importance on the preservation and conservation also includes rubberwood from replanting
of Malaysia’s tropical rainforests and the biodiverse operations and imported timber which complies with
ecosystems within them. Peninsular Malaysia’s import regulations.

Industry-Oriented Skills Training in Wood In principle, Malaysia has strengthened its three
Industry legality systems, which are being established by
MTIB established the Wood Industry Skills the responsible agencies in this region, i.e. MyT AS
Development Center (WISDEC) to provide skills in Peninsular Malaysia, Sabah T AS in Sabah and
training and to assist the development of value- Sarawa Timber egality and Verification System
added processing for the timber industry. (STLVS) in Sarawak.
Starting its operations in 1988 at the furniture
complex in Olak Lempit, Banting, Selangor, the The National Agricommodity
center established its second branch at Kota Policy 2021-2030
Kinabalu Industrial Estate, Sabah in 2005. WISDEC is The ational Agricommodity Policy - sets
also responsible for the technology transfer of the the policy direction for the national agri
industry. commodity industry. It was developed through
extensive engagements with key stakeholders
WISDEC runs an active technical training across the public and private sectors. Eight
programme, covering wood technology, furniture commodities and related outputs are covered, i.e.,
production, timber processing, etc. The courses are palm oil, rubber, timber, cocoa, pepper, plant-based
conducted with the assistance of both local and fibres enaf , biomass and biofuels under this
foreign experts of the industry. Through such policy. n its effort to achieve the Policy s objectives,
courses, WISDEC provides valuable training Malaysian timber industry developed the National
opportunities for personnel to upgrade and update Timber Industry Strategic Plan, NTISP (2021 - 2025).
their skill and knowledge so as to achieve higher
productivity and product quality. Forest Plantation Development
Programme (FPDP)
The programmes conducted include seminars, The Forest Plantation Development Programme
conferences and workshops, scheduled training,
customised training, youth training, competency- PDP is one of the overnment s initiatives to
based training as well as consultancy services. ensure continuous availability of wood raw materials
for the country’s timber industry as well as to reduce
The high quality technical and management training the pressure on the production of timber products
is customised for different categories of personnel from natural forests.
including hief ecutives, Management staff,
Machine Operators, Supervisors, Foremen, The three (3) main objectives of FPDP are:
Technicians, Carpenters and other operatives in the To sustain raw materials supply for the timber
wood-based industry. industry;
To encourage the development of commercial
Timber Legality Assurance System for forest plantations program by the private sector;
Peninsular Malaysia (MyTLAS) and
The Timber egality Assurance System for To increase value of investment in the timber
Peninsular Malaysia MyT AS was introduced to industry through forest plantation activities.
promote sustainable timber products from social,
environmental and economic perspective. The The eleven (11) species listed under FPDP are:
system covers the chain of activities from forest ubberwood Timber ate lone
harvest planning, mill processing to exporting to the
exit point. Acacia spp. Acacia mangium Acacia hybrid
haya spp. haya ivorensis haya senegalensis
urrently, MyT AS certificate is designed to cater for
export to the EU countries, and it is based on Tea Tectona grandis
consignments of certain timber products. MyT AS Sentang Azadirachta e celsa
has undergone two auditing processes and
expansion to other major markets is in the pipeline. urflower-tree elempayan aran m
(Neolamarckia cadamba)

atai Paraserianthes falcataria
inuang ctomeles sumatrana
amboo spp.
Paulownia spp.
ucalyptus ssp.

43

As of une , a total of , . hectares of industry players would be able to venture
into new markets and reach a wider pool of
land have been approved for the development of customers locally and abroad.

forest plantations under FPDP with a total of MTIB believes that innovation and technology are
crucial in product diversification and to ensure that
82 agreements covering the three regions of the industry meets the standards and requirements
of the global timber markets.
Peninsular Malaysia (59%), Sabah (33%) and
MTIB has facilitated an array of programmes and
Sarawak (8%). The supply from the FPDP 1.0 will initiatives to ensure Malaysia’s timber players are
constantly kept abreast with the latest know-how
provide an estimated total volume of 26 million m³ and innovation to produce a wide range of high
value-added products that are commercially viable
of raw materials for the timber industry in Malaysia. in the international and domestic markets.

Through the FPDP 2.0 launched in 2021, an Investing in R&D for Product Commercialisation
MTIB has provided a platform to encourage
estimated 50,000 hectares of forest plantations timber industry players to participate in R&D and
product commercialisation by facilitating industry
can be developed in the first years with collaborations with various local and foreign
partners to tap their expertise in timber
an estimated raw material supply turnover of engineering and meeting the international
standards in the commercialisation of Engineered
million m for a felling cycle of years to years Timber Products TPs . Among the TPs used in
Industrialised Building Systems (IBS) components
depending on the species planted. that are available from Malaysian timber include
Cross Laminated Timber (CLT), glued-laminated
Bamboo Programme timber (glulam) and laminated veneer lumber (LVL).
The Bamboo Community Farming Program is
implemented to increase the participation of farm Another commercialisation effort supported by MT
entrepreneurs and rural residents in bamboo is the D for Malaysian Agarwood and the
cultivation on privately-owned land or around aggressive marketing undertaken by MTIB to support
residential houses. This program is enabled with Malaysian Agarwood Products ntrepreneurs via
incentives in the form of bamboo seedlings and participation in international trades and exhibitions
fertilisers to eligible farm entrepreneurs and rural to promote Malaysian Oudh globally and to provide
residents. Bamboo Community Farming Programme them with a platform to exchange ideas and
also provides free bamboo saplings and fertilisers to knowledge about the industry.
eligible individuals, companies, cooperatives and
organisations. The objectives of Bamboo Currently there are more than 2,500 hectares of
Community Farming Programme are to promote agarwood plantations in Malaysia with almost
the establishment of bamboo forest plantation for 2.3 million planted trees. Trade of agarwood in
future alternative raw material as well as to Malaysia is also subjected to annual quota and
encourage the involvement of local communities in currently only 150,000 kg is allowed for export.
reed crops as an alternative source of income.
Non-woven compact production line
Domestic Market Promotion Programme With the advancement of technology, MTIB ensures
With the aspiration to help promote Malaysian that industry players are well-tuned to embrace the
wood-based products to the world, MTIB takes part latest methods to become more operationally
in prominent local and international exhibitions
to exhibit wood-based products and participates
in various media programmes and activities. MTIB
also participates in mini exhibitions in schools and
higher educational institutions to impart knowledge
and create awareness on the useand properties of
Malaysian timbers. This initiative aims to develop the
domestic market through greater use of local
timbers. The promotional activities encompass all
segments of the industry such as construction,
housing, furniture, handicrafts, interior design,
outdoor furniture, public work, boat building,
carving and non-timber forest products.

LEADING THE WAY IN TIMBER INDUSTRY
THROUGH TECHNOLOGY & INNOVATION

Innovative technologies are not only helping the
industry to manage Malaysia’s forests more
sustainably but also help industry players to
embrace technology to better compete globally.
By utilising and adopting various new and exciting
materials that can be derived from trees,

44 Growth Through Sustainability

efficient and their products commercially viable. ne
example is the use of needle punching process to
produce non-woven mat felt from natural fibre, a
technology pioneered in ermany. y adopting this
innovation, natural fibres such as enaf and oil palm
fibre can be converted to value added bio composite
products for advanced application. Non-woven
materials are used in numerous applications
including medical, filtration, geote tile, personal
care, automotive, hygiene etc.

Volatile organic compound (VOC) testing increase market growth, are more competitive and
chamber (24m3) sustainable for the industry in the future. This
This chamber provides real testing environment product has also been patented.
for full scale products like furniture, commercial
wood-based panel, door panel etc. and is able to REAPING EMERGING OPPORTUNITIES
collect the VOC gas emission to determine the SUSTAINABLY
amount of Volatile Organic Compounds (VOCs). This
technology helps the industry to comply with In Malaysia, the timber industry is the third largest
international standards such as ISO 16000. Currently contributor to the agricommodity sector after palm
this is the only testing facility available in Malaysia for oil and rubber. The timber industry will be further
wood-based products. This VOC Test Chambers developed to ensure its sustainability.
ma e analysis of the highly hazardous V s easy,
safe and reliable. Taking cognisance of the development of digital
technology which has resulted in a transformation of
Metal-Reinforced Wood Plastic business from a conventional model to a digital one,
Composite (MR WPC) MTIB will continue to support entrepreneurs
Aware of the depleting timber resources, full diversify their marketing methods by utilising
utilisation of wood material such as sawdust as modern technology to grow their respective
alternative raw material is essential to produce businesses.
value added timber-based products and to offer
other types of application in building material such While Malaysia continues to tap into the huge
as in IBS system. MTIB together with its research market by producing a variety of high-quality durable
partners conducted a study on utilisation of products with competitive prices that would be able
alternative raw material and latest technology in WPC to meet the market demand, equal importance will
manufacturing. The initiative has come to fruition be given to ensure that our supply of raw materials
when it won the old Medal award at the th are sustainable, the industry complies with market
International Expo on Invention and Innovations requirements and environmental commitments.
(Malaysia Technology Expo) in February 2020.
Moving forward, MTIB is committed to ensure that
The invention of MR WPC has since been introduced the timber industry would be transformed and
commercially into the market for housing modernised to be sustainable, resilience and
construction and commercial use. The combined successful at both local and international levels.
WPC and Metal-Reinforced technology has resulted
in new value added WPC’s products that are able to

DIVISION

Trade Development, MTIB

CONTACT NUMBER

+603 9282 2235

E-MAIL

[email protected]

WEBSITE

www.mtib.gov.my

45

MCMahlaaayslimaanyTpismiiboaern’Csoiunncgil:
TSiumstbaeirnaInbdleustry

The Malaysian Timber Council (MTC) was established in January 1992 to
promote the development and growth of the Malaysian timber industry.
MTC was formed on the initiative of the timber industry and is governed
by a Board of Trustees whose members are appointed by the Minister of
Primary Industries and Commodities.

MTC aims to promote the sustainability of the Malaysian timber industry by
improving its competitiveness, enhancing market access and creating trade
opportunities globally.

46 Growth Through Sustainability

VISION

To be the lead organisation that develops the
Malaysian timber industry into a world leader
in the manufacture and trade of timber
products.

MISSION

To ensure the sustainability of the
Malaysian timber industry by improving its
competitiveness, enhancing market access
and creating trade opportunities.

The ouncil established its first regional office in Malaysia has a comprehensive forest management
London in May 1993 to facilitate European system to ensure that the timber industry is
timber buying companies to have a contact point. managed responsibly in line with SFM best practices.
The urope office has been active in providing green With due diligence and systematic documentation,
advocacy while promoting trade and disseminating logs produced can be traced to its stump or at least
information about Malaysia’s Sustainable Forest to the forest of origin.
Management S M practices and certified timber.
To date, MT has regional offices in uangzhou Steps to further enhance verifiability for legality of
source includes progressing towards 100%
hina , Dubai A , engaluru ndia and tree-tagging and computer tracking under a
Rotterdam (the Netherlands).
hain-of- ustody scheme. ffective enforcement
In addition to promoting and marketing Malaysian systems are in place to ensure that Malaysia’s forest
timber to the global market, MTC’s goals include to agencies are supported by the Police and Customs
develop the timber industry by expanding the Departments to eradicate illegal forest practices.
industry’s technology-based manufacturing and All these procedures have enhanced the legality of
value-adding its production line; to augment the Malaysia’s sustainable forest management practices.
supply of raw materials for the timber-processing
industry; to provide information services to the Recent studies have shown that timber, when
timber industry and to enhance the global credibility managed sustainably, could undoubtly be one of
of the Malaysian timber industry. the world’s most environmentally friendly materials,
due to the fact that it is a natural carbon sink and is
Over the years, MTC had relentlessly promoted and truly renewable. Timber has lower embodied carbon
safeguarded the industry and had been engaging footprint compared to other mainstream
regularly with relevant stakeholders, authorities, construction materials, and coupled with its
government agencies and timber trade associations, sequestration property, has an added positive
both overseas and locally as it believes in creating environmental impact.
better synergies and opportunities by working
together.

ENSURING RESPONSIBLE PRACTISES TO
PROTECT MOTHER EARTH

As consumers become more nowledgeable, the
importance of environmentalism and eco-friendly
consumerism become more apparent. There is an
increased demand for forests to be sustainably
managed and wood sourced in a responsible
manner. This is not something that MTC is not
aware of. Since its inception, MTC has been actively
promoting Malaysia’s legal and sustainable timber
and timber products globally, at various forums and
platforms.

47

Malaysian timber and timber products comply with
international standards and requirements, local
regulations including the EU Timber Regulation

T , SA acey Act and the Australian llegal
ogging Prohibition Act etc.

To further illustrate its commitment towards SFM,

Malaysia has its own timber certification scheme

nown as the Malaysian Timber ertification Scheme

MT S , thus allowing Malaysia to supply certified

timber internationally. MTCS has been endorsed by

the Programme for the Endorsement of Forest

ertification P schemes, the largest forest

certification programme, representing more than

million hectares of certified forests worldwide.

The MT S is also the first tropical timber certification

scheme in the Asia Pacific region to be endorsed by

the PEFC.

MTC has also laid out a Five-Year Plan (2019-2023)
which will be the guiding principle in facing the main
challenges of sustainability for the industry.

The plan with its four ey Thrusts and ocus Areas
will help build resilience and sustain businesses.

Industry Development & Empowerment PROMOTING SUSTAINABLE VALUES OF
MALAYSIAN TIMBER TO THE WORLD

usiness Transformation

1 aw Material Augmentation Apart from environmental sustainability, the
Automation Digitalisation sustainability of the industry is also close to the heart
of MTC. Striking a balance between environment,
nowledge Talent economy and social is crucial for the nation’s timber
industry.
Product Development

2 Market Intelligence MTC has devised programmes that encourage
Database nformation Management adoption of the latest production technology to
enhance productivity and is environmentally
Market Development friendly.

3 Digital Mar eting ommunication
randing
MTC also emphasises on product development
Mar et Penetration Promotion programmes for high-value products and encourag-
es the adoption of digitalisation to improve business
Stakeholder Engagement operations and mar eting efforts to elevate
Malaysian timber brands in the global front.
4 Public Perception Management
ross ndustry Alliances

ssues Management Malaysia has been an active participant in the

international and regional forums, including the

United Nations Forum on Forests, the International

Tropic Timber rganisation TT , AS A Meeting

on Agriculture and orestry, AP pert roup on

llegal ogging and Associated Trade AT , just

to name a few. Together with the Malaysian

overnment and relevant agencies, MT has

promoted Malaysia’s stand in the international

arena and safeguarded the timber industry’s market

access.

In the spirit of transparency and to further promote
Malaysia s S M and timber certification initiatives
to the world, MTC has been engaging with local and
foreign journalists, trade representatives and other
related stakeholders.

48 Growth Through Sustainability