National Agricommodity Policy To Ensure Sectors Continue Developing Sustainably

Contrary to expectation, the two-year COVID-19/MCO (Movement Control Order) period of 2020-2021 was a ‘booming year ’for Malaysia’s Agricommodity products with an overall increase of 64% from the pre-pandemic period of 2018-2019.

Despite the country facing numerous economic devastations from the raging COVID-19 pandemic, the export value of Malaysia’s Agricommodity products remained strong, rising significantly over the four-year period from RM127.9 billion in 2018 to RM128.5 billion (2019) to RM151.3 billion (2020) and RM209.6 billion (2021).

To sustain the potential and growth of Malaysia’s plantation industry, the National Agricommodity Policy 2021-2030 (DAKN 2030) was launched in March 2022 to further drive the development of the country’s various agro sectors into a more
sustainable, competitive, and market-oriented manner. This is in tandem with new norms and increased leverage on digital
technology in the post-COVID-19 era.

In essence, DAKN 2030 contains five core thrusts: (i) sustainability; (ii) productivity; (iii) value-added creation; (iv)
market development; and (v) inclusivity. Below are six Agricommodity products that will benefit directly from the implementation of DAKN 2030, On palm oil efforts will be undertaken to increase exports and reduce stocks through export duty exemptions for crude palm kernel oil and processed palm kernel oil (RBDPKO) for companies that meet the application criteria.

As a result, the price of crude palm oil (CPO) has stabilised again while showing an increasing trend from June 2020 until now. In tandem with this is the implementation of the Malaysian Sustainable Palm Oil (MSPO) certification to brand sustainable and quality Malaysian palm oil as well as strengthening strategic cooperation with Indonesia through the Council of Palm Oil Producing Countries. As for the rubber sector, plans are afoot to extend the use of rubber in Malaysia to road construction and the production of new and value-added products based on rubber such as seismic bearings, rubber gloves, and others. The discussion has been formalised for Malaysia to co-operate with the world’s main rubber-producing countries namely Thailand and Indonesia under the framework of the International Tripartite Rubber Council (ITRC) to strengthen and stabilise international rubber market prices.

Malaysia will also expand its participation in domestic and international timber, furniture, and construction exhibitions to create demand for Malaysian timber products and to increase networking and business opportunities in relevant countries.

MPIC is committed to sustaining the country’s agricommodity sectors in order to ensure continuous impactful economic recovery and improvement post-COVID-19, despite facing the inflation challenge predicted to be in 2023. DAKN 2030 is the guideline for the ministry in maximizing the potential of the circular economy through biomass. This is to strengthen the position of these sectors in economic recovery post COVID19.

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