Plantation Industries and Commodities in Malaysia

Transcription

1 Plantation Industries and Commodities in Malaysia Mohamad Sanuri Shahid Deputy Secretary General (Strategic Planning and Management) Ministry of Plantation Industries and Commodities, Malaysia Global Islamic Financial Forum (GIFF 2012) 19 th Sept. 2012

2 SCOPE OF PRESENTATION Overview of Plantation Industries in Malaysia Profile of Commodities Export Performance National Commodity Policy Financing Prospects in Commodities: Upstream Downstream Conclusion 2

3 OVERVIEW Plantation commodities - since pre-independence era (pepper, rubber, coffee and coconut) Rubber and tin twin pillar of economy Crop diversification - oil palm was promoted esp. through FELDA Downstream ind. devt. resource based industries Contribution of plantation commodities: GDP 7% Export earnings - RM141 billion (2011) Employment - 705,000 (local - 365,000; foreign - 340,000) (Note: upstream sector incl. smallholders) 3

4 MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES (MPIC) Main Stakeholders: 6 Boards, 5 Councils & Industry Associations 4 Malaysian Palm Oil Board (MPOB) Malaysian Rubber Board (MRB) Malaysian Timber Industry Board (MTIB) Malaysian Cocoa Board (MCB) Malaysian Pepper Board (MPB) National Kenaf and Tobacco Board (NKTB) Malaysian Palm Oil Council (MPOC) Malaysian Timber Council (MTC) Malaysian Timber Certificate Council (MTCC) Malaysian Furniture Promotion Council (MFPC) Malaysian Rubber Export Promotion Council (MREPC)

5 PROFILE OF COMMODITIES Planted Area (Hectarage) Commodities Estates Smallholders Total (ha) Oil Palm 4,302, ,826 5,000,109 Rubber 339, ,978 1,022,700 Cocoa 1,080 19,463 20,543 Pepper ,593 14,800 Tobacco - 4,242 4,242 Kenaf - 1,279 1,279 Total 4,643,292 (76.6%) 1,420,381 (23.4%) 6,063,673 5

6 EXPORT PERFOMANCE OF COMMODITIES (2011) Commodity % Change (RM Million ) Oil Palm 62, , Rubber 26, , Timber 20, , (2.44) Cocoa 4, , Tobacco 1, , Pepper Total 114, , (average) 6

7 MALAYSIAN COMMODITIES AT THE GLOBAL STAGE Largest exporter of rubber glove Largest cocoa grinder in Asia Pacific Largest exporter of palm oil products 7 5 th largest producer of pepper 3 rd largest producer of natural rubber 8 th largest exporter of furniture

8 MAJOR PALM-BASED PRODUCTS EXPORT DESTINATIONS USA 0.71 MnT (RM 2.53 billion) EU 1.94 MnT (RM 5.35 billion) Middle East & Northern Africa 0.72 MnT (RM 2.46 billion) Pakistan 0.76 MnT (RM 2.36 billion) China, PR 2.02MnT India (RM 6.39 billion) 1.18 MnT (RM 3.85 billion) Japan 0.43 MnT (RM 1.67 billion) Total Export Volume & Value For Q2 2012: Mn T (RM billion) Total Export Volume & Value For 2011: Mn T (RM80.41 billion) Source: MPOB

9 MAJOR NATURAL RUBBER EXPORT DESTINATIONS Total Export Volume & Value For Q e: 353,355 tonnes (RM 3.75 billion) Others (RM 1.10 billion) China (RM 1.47 billion) China Germany South Korea USA Iran Netherlands (RM 0.11 billion) France Brazil (RM 0.13 billion) Brazil Netherlands France (RM 0.05 billion) Others Iran (RM 0.08 billion) USA (RM 0.11 billion) South Korea (RM 0.16 billion) Including export of compound to China Germany (RM 0.54 billion)

10 EXPORT VALUE OF TIMBER BY PRODUCTS (Q1/ 2012) Fibreboard 275 5% Mouldings 195 4% BJC 241 5% Other Products 146 3% Veneer 80 2% Chipboard/ Particleboard 75 1% Wooden Frame 33 1% Rattan Furniture 5 0% Wooden Furniture 1,531 31% Logs 448 9% Sawntimber % Plywood 1,271 26% 10

11 NATIONAL COMMODITY POLICY National Commodity Policy (NCP) was launched on 17 February 2012 The NCP provides strategic direction for the development of the plantation and commodities industry until 2020 Strategic thrusts to further transform the commodity sector 11

12 NATIONAL COMMODITY POLICY : THE SEVEN THRUSTS Thrust 1: Strengthening Commodities Industries in National Economic Development Thrust 2: Elevating Modernisation of the Commodity Industry Thrust 3: Diversifying Production of High Value-added Products Thrust 4: Generating New Sources of Revenue Thrust 5: Enhancing Competitiveness and Market Expansion Thrust 6 : Accelarating the Development of Smallholders and Entrepreneurs 12 Thrust 7: Developing and Strengthening Human Capital in Commodity Industries

13 EXPORT EARNINGS (ESTIMATED) (RM Billion) Commodities Palm Oil Rubber Timber Cocoa Pepper Tobacco Total

14 EXPORT EARNINGS, (RM Billion) Total Palm Oil Rubber Timber Cocoa Pepper Tobacco 14

15 FINANCING OPPORTUNITIES IN COMMODITIES

16 FINANCING IN COMMODITIES: ISSUES & OPPORTUNITIES Upstream sector: Govt. is providing assistance to smallholders - new and replanting, mechanisation Large estates are mainly financially independent hence opportunities for financing Downstream sector: Limited availability of finance for SMEs Some sectors have less accessibility to finance eg. timber sector - considered as a sunset industry Need for greater flexibility for export credit financing longer credit period Opportunities for syariah compliant instrument in commodity trading eg. Bursa Suq Al Sila 16

17 FOREST PLANTATION Govt. plans to establish large scale commercial forest plantations to supply raw materials for the timber industries 9 timber species promoted incl. rubber, acacia mangium, teak and bamboo Target 375,000 hectares by 2020; 25,000 hectares per year Govt. has approved loans amounting to RM million (47 agreements) covering 103,700 hectares To date, 62,308 hectares have been developed About RM2.4 billion of loans still needed 17

18 FOREST PLANTATION Ladang Hutan Getah LTC, Bornion Timber Sdn Bhd 2 tahun 18

19 FOREST PLANTATION Ladang Hutan species Acacia Mangium 19

20 Global export value of agarwood: Products AGARWOOD 2006 (RM 000) 2007 (RM 000) Malaysia is 2 nd largest producer of agarwood after Indonesia. In 2009, exports from Pen. M sia valued at RM56.43 million Trade of wild agarwood is controlled by CITES. Malaysia s export quota is 200,000 kg per year However, no quota is imposed on planted agarwood 2008 (RM 000) Chips and Block 444, , ,291 Oil 35, ,365 83,658 Powder 1, Total 481, , ,761 20

21 AGARWOOD PLANTATION Kuala Lipis, Pahang Simpang Pulai, Perak 21

22 INNOCULATION OF AGARWOOD Pokok karas yang telah matang * 5- > 30 tahun 22 Membuat lubang menggunakan drill sebesar 10mm Memasukkan bahan inokulan ke dalam pokok karas Hasil gaharu akan mula dituai pada 6 bulan, 12 bulan dan 24 bulan. Semakin lama tempoh hasil tuaian, mutu gaharu akan bertambah.

23 AGARWOOD GRADES Grades of Agarwood Price Per kilo (RM) Grade A Super 25, Grade A 20, Grade B 18, Grade C 15, Grade D 8, Grade E 3, Others Grade , Chips

24 CONCLUSION Plantation and commodity sector will continue to contribute to national economic growth part of NKEAs DKN provides pathway for greater transformation of the commodity sector Financing opportunities in commodity: large estates forest plantation agarwood SMEs export credit financing 24

25 THANK YOU 25