Palm oil sector can meet major NEM goals

Palm oil sector can meet major NEM goals
The StarBizOnline Thursday April 1, 2010 By HANIM ADNAN

PETALING JAYA: The palm oil sector will be able to match the New Economic Model’s (NEM) major goals of high income, sustainability and inclusiveness, industry players said.

Therefore, it was no big surprise when the Government inserted an appendix in its newly released NEM report on how the development of the industry can help achieve the NEM’s sustainability goal. Last year, Malaysia’s palm oil production stood at 17.7 million tonnes, with a total of about 4.69 million ha.

Palm oil contributed about 3.2% to the country’s real gross domestic product (GDP) in 2008. Exports in 2009 rose to RM38.5bil, capturing about 7% of total exports. In comparing the palm oil sector to the electrical and electronics (E&E) sector, the National Economic Action Council (NEAC) has estimated that unless the E&E sector is dramatically upgraded, the palm oil sector could become a larger component than E&E in GDP contribution, rising in nominal terms to 12.2% of GDP by 2020.

In terms of high income, industry calculations suggest that the sector’s share of real GDP can grow to 7.6% by 2020 if the value-added gains from efficiency and innovation can be realised. Palm oil exports could also grow by 7% per annum to RM84bil by 2020, and probably more if new oil palm products and services can be successfully marketed.

The sector employs 590,000 direct workers versus 316,956 in the E&E sector.

Read more >> link here