Kenaf Ventures Global Sdn Bhd (KVG) marks its entry at the Dubai 2020 to introduce kenaf at the international level and expand its network globally, says Chief Executive Officer Jazman Shahar Abdollah to Business Today.
Kenaf is a brown plant fibre similar to jute that is used to make ropes and coarse cloth. It has enormous potential for local agricultural development that has yet to be fully exploited.
Kenaf fibre is in high demand all over the world, particularly in the automotive, construction, and aviation industries, says the CEO.
“Profitability wise, kenaf can become a multibillion-dollar business considering its recognition as a sustainable crop replacing many non-renewable resources such as plastics and its versatility in various sectors.
“Hence, this has contributed to kenaf demand in Malaysia and other parts of the world as a global commodity,” he explains.
Kenaf can be turned into a commodity that can benefit the nation in various aspects such as socioeconomic and national development as a whole.
“The expo is a strategic platform to create bigger investment opportunities and collaborators that will not only benefit the company but the nation as a whole as KVG’s participation in the expo represents the Malaysian kenaf industry,” he says.
Regarding the export of kenaf to other countries, he says that Malaysia could become a major producer and exporter with the rising demand for kenaf fibre and core on a worldwide scale.
However, prior to supplying the product, KVG is currently working on every option to meet the local and global demands saying, “We are very close to achieving the target and mission”.
KVG has been collaborating with various parties who are industry players as well as subject matter experts in the kenaf industry, one of them is its collaboration since 2019 with Forest Research Institute Malaysia that focuses on setting up a plant for the production of pulp from kenaf’s core.
Kenaf expects to achieve the local industry value of RM4 billion by 2025.
Kenaf is regarded as an industrial crop both locally and globally because the plant that produces fibre and core can be processed into a variety of products for commercialization such as fibre and particle boards, pulp and paper, thermal insulator and many more.
Recent studies show that the kenaf plants process a wider range of adaptation to environments, climates, soils and a rich source of cellulose compared to other fibre plant in the profitable manufacturing industry. Hence the demand for kenaf is growing as it has a potential wide market for raw materials or finished products for commercialization.
“I can share with you the brief on the demands through the statistics of kenaf market value. The demand for kenaf fibre and core can be found worldwide, particularly in automotive, construction and aviation.
“Take construction, for instance, kenaf fibre and core worth RM2.69 billion globally and RM32 million for the developing countries alone (Malaysia, China, Indonesia and Thailand). As for automotive, the kenaf products are worth RM852 million and Malaysia is one of the few countries that incorporate kenaf in car production other than Japan, Germany, the US and a few more countries.
“Internationally, kenaf is also sought in the aviation industry with a worth of RM380 million involving countries such as the Asia Pacific, Europe and Commonwealth of Independent States, and several other parts of the world. Kenaf could achieve the local industry value of RM4 billion by 2025. Looking at the current kenaf market value and the promising demand that kenaf received locally and internationally, I am sure that kenaf will not only keep growing its demand locally but also from all parts of the world,” he says.
