10/10/2024
BIZ & FINANCE THURSDAY | OCT 10, 2024
15
MPOB seeks govt aid for oil palm rejuvenation
Is it more economical and sustainable to use EVs? KUALA LUMPUR: Electric vehicles are gaining popularity, not just as symbols of modern technological advancement, but also for their environmental sustainability and potential for long term cost savings in both operation and maintenance. The key question remains: is it worth transitioning from internal combustion engine (ICE) vehicles to EVs? Prof Dr Ishak Aris, a researcher at the Department of Electrical and Electronics Engineering, Faculty of Engineering, Universiti Putra Malaysia, said the shift to EVs is highly relevant today. He believes the trend will accelerate, particularly with the launch of affordable EVs by local manufacturers next year. “Currently, the available EV models are imported brands priced above RM100,000. Once more affordable options become available, they will attract more motorists,” he told Bernama. Perodua plans to launch an affordable EV by end 2025, while Proton is set to introduce its first EV model in collaboration with Geely as early as next year. This demonstrates the strong commitment of both local companies to the growing EV market. Ishak noted that, according to data from the Malaysia Automotive Robotics and IoT Institute, there are currently over 2,500 charging stations across the country, including in rest and relax (R&R) areas, with this number expected to grow further. He also believes EVs could become a viable alternative, fuelled by continuous technological advancements. These innovations are expected to lead to improved battery specifications, enabling longer driving ranges at more affordable prices. Additionally, he is confident that access to spare parts and repair expertise will expand in the future, making EV ownership more practical and accessible. “It depends on individual preferences – whether they prefer lower long-term costs and environmental benefits, or are more comfortable with conventional vehicle technology,” he said, adding that fluctuating petrol and diesel prices are key factors driving the transition to EVs. Meanwhile, Aaron Kee, chief business officer of Carsome Group, an online used car platform, said that both EVs and traditional ICE vehicles will continue to be used for a considerable period. He said this is due to differences in regional infrastructure, as well as varying user preferences and market readiness. He said it is still too early to forecast the resale value of electric vehicles, as EV adoption is still in its infancy, while conventional cars have a proven track record for retaining value.
lay a strong foundation for understanding the dynamics and develop systematic and scientific approaches. “By addressing these areas, the sector will not only achieve higher yields but also strengthen its export performance, as improved productivity will make Malaysian palm oil more competitive in international markets, said Ahmad Parveez. Recently, the Ministry of Plantation and Commodities submitted two proposals to the Finance Ministry to be considered for inclusion in Budget 2025, namely a revision of the windfall profit levy on palm oil and additional allocations for oil palm replanting programmes. Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani said that he hopes the government would consider additional allocations for the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS) to be included in the budget, noting that nearly 1.5 million hectares of oil palm plantations are currently managed by smallholders. “Last year, the government allocated RM100 million for TSPKS 2.0, 50% of which as grants and 50% as loans. However, I believe more funding will be needed for oil palm replanting to ensure our future exports are not affected,” he said. Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim also highlighted that the Madani government remains committed to bolstering the country’s palm oil industry. He said the government has continued engaging various sectors of society, including industry players, ahead of the Budget 2025 presentation on Oct 18. “During the engagement session, we tackled several critical issues, such as foreign worker shortages and low palm oil production rates. Additionally, discussions centred on enhancing downstream activities to secure the long-term sustainability of the palm oil industry,” the prime minister said in a post on X. The prime minister’s engagement series involved the Perak menteri besar, the minister of plantation and commodities, the chief secretary to the government, senior officials and key figures from the palm oil industry.
sustainability measures to enhance biodiversity and protect the environment,” he noted. Ahmad Parveez stated that supporting initiatives promoting the circular economy including valorising waste from oil palm by-products will be crucial in positioning the sector for long-term growth. “For the past 10 years (2013-2023), the area of old palm trees that were over 25 years old had increased by 5.1% per year, coupled with the current replanting rate remaining below the recommended level, thus causing the decline in productivity during the period. “We believe this is largely due to financial constraints many industry players face. We hope to see more incentives directed towards replanting initiatives, as a significant portion of ageing trees reduces the overall yield,” he stated. Ahmad Parveez also suggested the government introduce policies or financial aid to expedite replanting activities involving plantation companies, which would greatly benefit the sector. He added that an incentive scheme for machinery, especially for infield collection activities, should be considered to encourage planters to increase the level of mechanisation to reduce dependence on manual labour. “Mechanisation has been proven to reduce labour utilisation and increase labour productivity. We also hope there are some incentives to combat pest and disease issues, particularly for independent smallholders, as these factors also impede productivity. “Policies driven towards enhancing the implementation of Integrated Pest Management to address key issues such as bagworm infestation, would be much favourable for the industry, especially assisting smallholders in combating its threat to their income and livelihoods,” he added. On the climate control and management agenda, initiatives towards technology adoption such as data analytics and artificial intelligence to monitor the exchange of greenhouse gases in plantations, would also allow the country to
o Efforts will ensure sector’s growth while tackling environmental concerns, says board KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) hopes the government will assist planters in accelerating replanting activities to rejuvenate unproductive and ageing oil palm trees in Budget 2025, thus enhancing the sector’s productivity. Its director-general Datuk Dr Ahmad Parveez Ghulam Kadir said these efforts will ensure the sector’s continued growth while addressing environmental concerns. He said another critical priority is addressing the regulatory challenges due to the European Union Deforestation Regulation. “Some key priorities for the oil palm sector revolve around productivity enhancement. As Malaysia’s arable land is limited, further expansion is not feasible, especially with the need to maintain a balance between industry growth and environmental sustainability. “Therefore, the focus is on maximising productivity on existing plantations, which can be achieved through adopting new technologies and replanting with high yielding planting materials,” he told Bernama yesterday. Ahmad Parveez said that strengthening Malaysia’s sustainability certification, particularly through the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme, will be essential for maintaining access to critical markets like the European Union. “Policies that encourage the adoption of new technologies, such as Industry 4.0 advancements to improve mechanisation and reduce reliance on labour in plantations, are also vital. “Research and development funding should focus on areas such as precision agriculture, the development of high yielding planting materials, and
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