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
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
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
• 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
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
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
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
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
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
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
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
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
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
• 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
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
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
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
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Journal available free-of-charge
at
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