Gearing Professionals, Driving Productivity of the Oil Palm Plantation Industry

A. KUSHAIRI Malaysian Palm Oil Board

Riverside Majestic Hotel

Kuching, Sarawak, Malaysia

24-25 November 2014

RBD Palm Olein (RBD = refined, bleached and deodorized)

Oil Palm at a Glance

Oil Palm Species: Elaeis guineensis Type: Tenera (DXP) Nursery : 12 months Planting density: 136-148 p/ha Economic Life: 25 years

Fresh Fruit Bunch (FFB) Weight: 10-20 kg No. of Fruits: 1000-3000 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

Kernel • Palm Kernel Oil

(PKO): 0.5 t/ha/yr • Palm Kernel Cake

(PKC): 0.5 t/ha/yr

kushairi@mpob.gov.my kushairi@mpob.gov.my

OIL PALM PLANTATION OWNERSHIP, 2013

Private Estates 62%

Smallholders 14%

FELDA 13%

FELCRA 3%

State Schemes/ Gov. Agencies

6%

RISDA 2%

Private Estates Smallholder FELDA FELCRA State Schemes/Gov. Agencies RISDA

Total: 5.23 mil ha

Stakeholders of Malaysian Oil Palm Industry

Oil Palm Malaysia 2013

Performance

• Area: 5.23 mil ha

• FFB : 19.02 t/ha/yr

• OER: 20.25%

• OY: 3.85 t/ha/yr

• Kernel: 0.97 t/ha/yr

• CPO : 19.22 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 0.09 0.43

2.57

6.09

10.84 11.8

13.35

14.96 15.82

17.56 18.9 19.21

0

5

10

15

20

25

1960 1970 1980 1990 2000 2001 2003 2005 2007 2009 2011 2013

Millio

n T

on

nes

0.00

1.00

2.00

3.00

4.00

5.00

6.00

1960 1980 2000 2003 2005 2007 2009 2011 2013

0.06 0.26

1.02

1.98

3.38 3.50 3.80 3.88

4.05 4.17 4.31 4.49

4.69 4.86 5.00 5.08

5.23

(Mil. h

ecta

res)

(Year)

Planted Area

CPO Production

kushairi@mpob.gov.my

1970-1990

NEP – New Economic Policy

• A socio economic program to eradicate poverty and restructuring of economy.

1991-2000

DEB – National Development Policy

• To enhance the welfare of Malaysia comparing to the world.

• Replacing NEP but continued to pursue most of NEP agenda.

1991-2020

Vision 2020

• To be a developed, high income nation by the year 2020.

• Encompasses all aspects of life, from economic prosperity, social well-being, educational world-class, political stability and psychological balance.

2000

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 2007.

2010-2020

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.

Malaysia’s

Development

Program

kushairi@mpob.gov.my

• 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

RMKe-10

National Key Economic Area (NKEA) / Entry Point Projects (EPP)

PALM OIL TRANSFORMATION FRAMEWORK

• Increased in

Productivity and

Competivenes

• High-value added

Products

• Existing and New

Markets

• Sustainable

Development

• 3P – People, Planet and

Profit

• Waste to Wealth

ENABLERS MECHANISMS OUTCOMES 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

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

kushairi@mpob.gov.my

Total employment of oil palm plantation workers in Malaysia, 1997 – 2007

Year Local

Workers

Foreign

Workers

Total

Employment

% of Foreign

Workers

1997 8,411,174 627,426 9,038,600 6.9

2000 8,701,504 807,096 9,511,600 8.5

2005 9,475,262 1,185,238 12,290,500 16.1

2006 9,675,291 1,869,209 11,544,500 16.2

2007 9,754,001 2,021,099 11,775,100 17.2

Malaysian Oil Palm Plantation

Labour requirements

Source: Mohd Arif, 2010

• 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

kushairi@mpob.gov.my

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

kushairi@mpob.gov.my

Roles in Education

– MPOB

kushairi@mpob.gov.my

Examples of Oil Palm / Palm Oil Research Areas Sponsored Under MPOB Graduate Research Programme

Research Areas Research Areas

• Plant Breeding • Nutrition and Health

• Bioinformatics • Bio-energy, Bioethanol

• Biotechnology • Nanotechnology

• Genomics • Biomass, Biochemical

• Plant Pathology • Pharmaceuticals

• Soil Science • Organic Chemistry

• Mechanization & Automation • Food Safety

• Sustainability, Environmental Science • Chemical Engineering

• Food products • Plastics, Polymers and Coatings

kushairi@mpob.gov.my

Program:

Human Resource

Development (Pembangunan Sumber Manusia)

PhD MSc Total

2000 – Oct 2014

70 77 147

Capacity Building of MPOB Staff

Summary 2000 – 2014

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

kushairi@mpob.gov.my

Further Information on

GSAS,

watch MPOB TV at www.mpob.gov.my

UPM UKM UM UTM UiTM USM IMU UNIM UniKL USIM UNIZAR UMP UMT Total

83 50 28 4 3 6 11 4 3 1 1 3 3 200

Program:

GSAS PhD MSc

Total

1996 – Oct 2014

37 163 200

kushairi@mpob.gov.my

MPOB Scholarship for Overseas Studies

Program:

Biasiswa Pendidikan MPOB

PhD MSc. Total

2003 – 2014

12 0 12

Number of MPOB Sponsored Students at Universities Overseas, 2003 – 2014

United Kingdom United States Australia New Zealand Total

8 1 2 1 12

1. 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

kushairi@mpob.gov.my

Undergraduate Industrial Attachment

at MPOB

Number of Undergraduate Industrial Training at MPOB, 1999 – 2014

Program Public University

(IPTA)

Private University

(IPTS) Total

Industrial Attachment 206 93 299

• A hands-on experience on oil palm/palm oil

• Relevant to line of university learning

kushairi@mpob.gov.my

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

PLASMA Lahad Datu, Sabah

PLASMA Keratong, Pahang

• Courses covering the palm oil value chain

• Had trained more than 13,000 participants

• 10% foreign participants from 67 countries

kushairi@mpob.gov.my

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

18

National Kenaf and Tobacco Board

Malaysian Rubber Board Malaysian Cocoa Board

Malaysian Pepper Board Malaysian Timber Industry Board

Malaysian Palm Oil Board

MPIC

kushairi@mpob.gov.my

• 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

Short Courses Organized by

MPOB and IMPAC

0

200

400

600

800

1000

1200

1400

Selected Courses, 1999 – 2014

No. of participants No. of companies

IDOPMT

Intensive Diploma in

Oil Palm Management

& Technology

DIPOM

Diploma in Palm Oil

Milling Technology and

Management

Surveyor

Oil Palm Products

Surveying Course

KOML

Kursus Operator

Mekanisasi Ladang

Summary of Participants Trained

Note: full list of courses organised by MPOB is available at www.mpob.gov.my

kushairi@mpob.gov.my

Number of participants attended

MPOB short courses, 2005-2014 Item

Total

(1999-2014)

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

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

industry 763 844 1053 1353 999 1157 1676 1540 1108 2075

mpob 145 46 61 26 26 92 14 58 65 44

total 908 890 1114 1379 1025 1249 1690 1598 1173 2119

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

kushairi@mpob.gov.my

Summary of Participants Trained

The OP Industry Needs You!

Plantation Sector

• Entrepreneurs

• Managers and related

• Agronomists

• Plant protectionists

• Engineers

• Researchers

Breeding Tissue Culture

Biotechnology

Pathology Entomology Agronomy,

Soil Science Agric. Engineering

Extension

Services Sustainability

Planters

kushairi@mpob.gov.my

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

kushairi@mpob.gov.my

24

JOPR is an Open Access

Journal available free-of-charge

at

http://jopr.mpob.gov.my/

Thank You

http://mpob.gov.my/

kushairi@mpob.gov.my