Gearing Professionals, Driving Productivity of the Oil Palm Plantation Industry
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1 Gearing Professionals, Driving Productivity of the Oil Palm Plantation Industry A. KUSHAIRI Malaysian Palm Oil Board Riverside Majestic Hotel Kuching, Sarawak, Malaysia November 2014
2 Oil Palm at a Glance Oil Palm Species: Elaeis guineensis Type: Tenera (DXP) Nursery : 12 months Planting density: p/ha Economic Life: 25 years Fresh Fruit Bunch (FFB) Weight: kg No. of Fruits: Oil/bunch: 22-25% Kernel/bunch: 4% Kernel : 8kg Palm oil/year: 42.5 kg Fruit Shape: Oval Fruit size: 5 cm Fruit weight: 10 g Mesocarp/fruit: 83% Oil/dry mesocarp: 75% Kernel/fruit: 7% Mesocarp Crude Palm Oil (CPO): 4 t/ha/yr RBD Palm Olein (RBD = refined, bleached and deodorized) Kernel Palm Kernel Oil (PKO): 0.5 t/ha/yr Palm Kernel Cake (PKC): 0.5 t/ha/yr
3 OIL PALM PLANTATION OWNERSHIP, 2013 Private Estates 62% Total: 5.23 mil ha RISDA 2% Smallholders 14% State Schemes/ Gov. Agencies 6% FELCRA 3% FELDA 13% Private Estates Smallholder FELDA FELCRA State Schemes/Gov. Agencies RISDA
4 Stakeholders of Malaysian Oil Palm Industry
5 Million Tonnes (Mil. hectares) Oil Palm Malaysia 2013 Performance Area: 5.23 mil ha FFB : t/ha/yr OER: 20.25% OY: 3.85 t/ha/yr Kernel: 0.97 t/ha/yr CPO : mil tonnes Revenue: RM61.36 billion (ca. USD20.25 billion) FFB: fresh fruit bunch OER: oil extraction rate OY: oil yield CPO: crude palm oil Planted Area (Year) CPO Production
6 Malaysia s Development Program NEP New Economic Policy A socio economic program to eradicate poverty and restructuring of economy DEB National Development Policy To enhance the welfare of Malaysia comparing to the world. Replacing NEP but continued to pursue most of NEP agenda Vision 2020 To be a developed, high income nation by the year Encompasses all aspects of life, from economic prosperity, social well-being, educational worldclass, political stability and psychological balance Outcome of various initiatives Malaysian economy reached full employment. Unemployment rate declined to 3.1%. Disequilibrium in labour market, demand exceeded supply. Influx of foreign labour; Total workforce in oil palm plantation ca.800,000 (8.5%) in 2000 increased to more than 2 mil (17.2%) in GTP Government Transformation Programme ETP Economic Transformation Programme NKRA National Key Results Area NKEA National Key Economic Area EPP Entry Point Project Objectives: high income, sustainable development and inclusiveness.
7 PALM OIL TRANSFORMATION FRAMEWORK RMKe-10 National Key Economic Area (NKEA) / Entry Point Projects (EPP) ENABLERS MECHANISMS OUTCOMES ABC Inclusive Approach Association (MPOA) Board (MPOB) Council (MPOC) World Class Research (MPOB) Industry-Driven through Cess Collection R & D & C Transfer of Technology Innovation High value Addition Good Agricultural Practice (GAP) Mechanization /Automation Financial Aid and Incentives Palm Oil Industrial Cluster (POIC) International Collaboration Branding and Market Promotion Increased in Productivity and Competivenes High-value added Products Existing and New Markets Sustainable Development 3P People, Planet and Profit Waste to Wealth Export Earnings Job Opportunities Increased in Smallholders Income Industry / SME Development H I G H I N C O M E N A T I O N 41,600 Jobs Generated by Year 2020
8 Issues and Challenges Land resources Labour Human resource development lacks university-industry communication on the curriculum as needed by the industry Anti palm oil campaign Sustainability Nutrition
9 Malaysian Oil Palm Plantation Labour requirements Booming economy resulted in disequilibrium in labour market Oil palm plantation is labour intensive Low level of mechanization. 73% of workforces are harvesters, FFB and loose fruits collectors. 32% foreign labour, mainly Indonesians Total employment of oil palm plantation workers in Malaysia, Local Foreign Total % of Foreign Year Workers Workers Employment Workers ,411, ,426 9,038, ,701, ,096 9,511, ,475,262 1,185,238 12,290, ,675,291 1,869,209 11,544, ,754,001 2,021,099 11,775, Source: Mohd Arif, 2010
10 Roles in Education Government To provide more scholarships for tertiary education in agriculture To provide more vocational training facilities in agriculture To review university curriculum in plantation related courses, stakeholders involvements Private Sector To provide more scholarships for tertiary education in agriculture, later absorb them in the company Plantation companies with existing training facilities should be encouraged to extend their services to other smaller companies to further develop the human capital. To review university curriculum in plantation related courses, stakeholders involvements
11 Roles in Education MPOB
12 Examples of Oil Palm / Palm Oil Research Areas Sponsored Under MPOB Graduate Research Programme Research Areas Plant Breeding Bioinformatics Biotechnology Genomics Plant Pathology Soil Science Mechanization & Automation Sustainability, Environmental Science Food products Research Areas Nutrition and Health Bio-energy, Bioethanol Nanotechnology Biomass, Biochemical Pharmaceuticals Organic Chemistry Food Safety Chemical Engineering Plastics, Polymers and Coatings
13 Capacity Building of MPOB Staff Summary Program: Human Resource Development (Pembangunan Sumber Manusia) PhD MSc Total 2000 Oct University Total University Total Universiti Putra Malaysia (UPM) 45 Universiti Malaysia Terengganu (UMT) 3 Universiti Kebangsaan Malaysia (UKM) 34 University of Nottingham, Malaysia (UNIM) 2 Universiti Malaya (UM) 11 Universiti Malaysia Pahang (UMP) 1 Universiti Teknologi MARA (UiTM) 11 Universiti Sains Malaysia (USM) 2 Universiti Teknologi Malaysia (UTM) 4 Universiti Malaysia Sabah (UMS) 1 Universiti Utara Malaysia (UUM) 3 Universiti Malaysia Sarawak (UNIMAS) 2 International Medical University (IMU) 3 Overseas universities (UK, Australia, New Zealand, German, Denmark, Philippines) 25
14 Program: GSAS PhD MSc Total 1996 Oct UPM UKM UM UTM UiTM USM IMU UNIM UniKL USIM UNIZAR UMP UMT Total Further Information on GSAS, watch MPOB TV at
15 MPOB Scholarship for Overseas Studies Program: Biasiswa Pendidikan MPOB PhD MSc. Total Number of MPOB Sponsored Students at Universities Overseas, United Kingdom United States Australia New Zealand Total Univ. of Oxford (2) 2. Univ. of Nottingham 3. Univ. of Strathclyde 4. Univ. of East Anglia 5. Imperial College 6. Univ. of Aberdeen 7. Univ. of Bath 1. Univ. of Akron, Ohio 1. Univ. of Melbourne 2. Curtin Univ., Perth 1. Univ. of Waikato
16 Undergraduate Industrial Attachment at MPOB A hands-on experience on oil palm/palm oil Relevant to line of university learning Number of Undergraduate Industrial Training at MPOB, Program Public University (IPTA) Private University (IPTS) Total Industrial Attachment
17 Pusat Latihan Sawit Malaysia (PLASMA) Malaysian Oil Palm Training Centre Locations 1) MPOB HQ, Bangi, Selangor 2) MPOB PLASMA, Keratong, Pahang 3) MPOB PLASMA, Lahad Datu, Sabah Courses covering the palm oil value chain Had trained more than 13,000 participants 10% foreign participants from 67 countries PLASMA Lahad Datu, Sabah PLASMA Keratong, Pahang
18 Institute of Malaysian Plantation And Commodities (IMPAC) Under the umbrella of the Ministry of Plantation Industries and Commodities (MPIC) Aims at producing trained workforce for plantation industries and commodities Courses organised by agencies under MPIC MPIC Malaysian Palm Oil Board National Kenaf and Tobacco Board Malaysian Rubber Board Malaysian Cocoa Board Malaysian Timber Industry Board Malaysian Pepper Board 18
19 Short Courses Organized by MPOB and IMPAC Intensive Diploma in Oil Palm Management & Technology Diploma in Palm Oil Milling Technology & Management The MPOB Oil Palm Products Surveying Course Cosmetics Course Kursus Kemahiran Menggred Buah Sawit Kursus Pengurusan & Penyelenggaraan Nurseri Sawit Kursus Penyelia Kilang Minyak Sawit Kursus Pengendali Makmal Kilang Minyak Sawit Kursus Penyelia Bengkel Kilang Minyak Sawit Kursus Drebar Enjin Kursus Operator Mekanisasi Ladang Marketing Course
20 Summary of Participants Trained Selected Courses, IDOPMT Intensive Diploma in Oil Palm Management & Technology DIPOM Diploma in Palm Oil Milling Technology and Management Surveyor Oil Palm Products Surveying Course No. of participants Note: full list of courses organised by MPOB is available at No. of companies KOML Kursus Operator Mekanisasi Ladang
21 Summary of Participants Trained Item Total ( ) Number of participants attended MPOB short courses, No. of courses organized ~1,000 Total participants trained >15,000 Total companies participated >700 Total foreign participants 280 Total participating countries 112 Impact of MPOB industry training programme: Trained industry personnel to fill up the management and middle management posts industry mpob total
22 The OP Industry Needs You! Plantation Sector Entrepreneurs Managers and related Planters Agronomists Plant protectionists Engineers Breeding Tissue Culture Biotechnology Researchers Entomology Pathology Agronomy, Soil Science Agric. Engineering Sustainability Extension Services
23 Conclusions Oil palm plantation needs professionals University curriculum back to basics MPOB helps in gearing professionals Sponsored more than 200 PhD and Masters students Trained >13,000 industry participants through short courses Aligning academic qualifications with job specifications Contributing to the nation s economy in oil palm, agriculture, university and related industries Professionals drive oil palm productivity, enhancing economy
24 Thank You JOPR is an Open Access Journal available free-of-charge at
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