The Oil of the Future - American Palm Oil Council

The Oil of the Future 

annual report8

MALAYSIAN PALM OIL COUNCIL Annual Report 2008 

 

MALAYSIAN PALM OIL COUNCIL annual report 2008 

contents 

02 corporate 

background 54 

domestic 

promotions 

04 

board of 

trustees 65 

media 

promotions, 

publications 

and posters 

07 

board of 

trustees and 

committees 

73 

branding of 

malaysian 

palm oil 

08 

organisation 

chart & 

management 

team 

74 

public relations 

activities 

09 

chairman’s 

statement 

79 

calendar of 

events 

12 ceo’s 

report 

89 financial 

statements 

19 market 

overview 

112 

list of 

abbreviations


 

corporate 

background 

The Logo was designed to be hard-edged towards 

defined linearity, while conforming to the geometry of 

balance and clarity of form. It was structured to reflect 

modernity in the expression of an oil palm tree, within 

the context of today’s graphic idiom. The simplicity in the 

design approach is derived from the utilisation of component 

elements from the ubiquitous ‘square’ itself, to interact 

intuitively, for easy recognition and recall. 

The colours of green and earthy red represent a healthy environment, and black - concerns 

for biodiversity, and the preservation of a cleaner world of tomorrow. The initials - MPOC 

- anchor the logo to form part of the total corporate signature. 

The development of the logo was intended to generate stronger awareness of the Council’s 

relentless efforts to put Malaysian Palm Oil on the highest scale of consumer acceptability, 

in terms of health-giving attributes, environmental friendliness, and endless commercial 

applicability. 

The introduction of this new logo has enhanced MPOC’s standing and visibility, for 

continued success of the Malaysian Palm Oil industry, at home and in the global market.


 

mission & objectives 

mission 

To promote the market expansion of Malaysian palm oil and its products by enhancing the image 

of palm oil and creating better acceptance of palm oil through awareness of various technological 

and economic advantages (techno-economic advantages) and environmental sustainability. 

objectives 

• To enhance trade opportunities in the market place by identifying and meeting the latest 

opportunities in the market. 

• To encourage product diversification by using Malaysian palm oil as the key ingredient, thus 

gaining a prominent role in new and reformulated products. 

• To improve understanding of palm oil, enhancing its application and elucidating its numerous 

strengths and benefits 

• To uphold the good name of Malaysian palm oil by closing the gap between the issues of 

perception, allegations and the realities of palm oil. 

• To safeguard Malaysian palm oil as the most dominant vegetable oil in terms of market 

coverage, nutritional benefits, environmental sustainability and commercial success.


 

board 

Dato’ Seri Lee Oi Hian 

Chairman 

(retired on Feb 21, 2009 

and replaced by Dato’ Lee Yeow Chor) 

Dato’ Lee Yeow Chor 

Tan Sri Datuk Dr Yusof Basiron 

Nurmala Abd Rahim


 

of trustees 

Dato’ Dr Mohd Basri Wahid 

Dato’ Carl Bek-Nielsen 

Ramli Putih 

Dato’ Er Kok Leong


 

board of trustees (cont’d) 

Datu Vasco Sabat Singkang 

Dato’ Azhar Abdul Hamid 

R Venugopal 

Low Kock Ching 

Haji Eusope @ Yusoff Haji Ismail


board of trustees & committees 

 

Board of Trustees 

Dato’ Seri Lee Oi Hian 

(Chairman) 

Nurmala Abd Rahim 

• representing Ministry of Plantation Industries 

and Commodities (KPPK) 




Dato’ Dr Mohd Basri Wahid 



Dato’ Carl Bek-Nielsen 

• representing Malaysian Palm Oil Association 

(MPOA) 



(MPOA) 

Dato’ Azhar Abdul Hamid 


(MPOA) (from June 27, 2008) 

R Venugopal 

• representing Malayan Edible Oil 

Manufacturers’ Association (MEOMA) 

(from April 22, 2008) 

Ramli Putih 

• representing Federal Land Development 

Authority (FELDA) 

Low Kock Ching 

• representing Palm Oil Millers Association 

(POMA) (from June 30, 2008) 

Dato’ Er Kok Leong 

• representing Palm Oil Refiners Association 

Malaysia (PORAM) 

Haji Eusope @ Yusoff Haji Ismail 

• representing National Association of 

Smallholders (NASH) (from March 3, 2008) 

Datu Vasco Sabat Singkang 

• representing Sarawak Land Consolidation 

and Rehabilitation Authority (SALCRA) 

Datuk Mazlan Haji Jamaludin 

• representing National Association of 

Smallholders (NASH) (up to March 3, 2008) 

Dato’ Low Mong Hua 

• representing Palm Oil Millers Association (POMA) 

(up to April 13, 2008) 

Muhammad Hakim See Abdullah 

• representing Malayan Edible Oil Manufacturers’ 

Association (MEOMA) (up to April 22, 2008) 

Dato’ Haji Sabri Ahmad 


(MPOA) (up to June 27, 2008) 

Kwok Kian Hai 

• representing Pasir Gudang Edible Oils Sdn Bhd 

(up to September 30, 2008) 

Finance and 

General Affairs Committee 

Dato’ Er Kok Leong 

(Chairman) 

(from June 18, 2008) 


Nurmala Abd Rahim 

Ahmad Sidek Stroo 

R Venugopal 

(from June 18, 2008) 

Dato’ Low Mong Hua 

(Chairman) 

(up to April 13, 2008)


 

organisation chart & 

management team 

Computer & 

Communications Unit 


Chief Executive Officer 

- MIS Executive 

- Information Service Executive 

- Communication Web Executive 

- Script Writer 

- Video Technician 

Senior Fellow (Environment) 

Senior Fellow (Nutrition) 

Dr Kalyana Sundram 

Deputy CEO / Director, Science & 

Environment Division 

Manager, Science & 

Environment 

- Senior Executive, Science & 

Environment 

- Executive, Science & 

Environment (Nutrition) 

- Executive, Science & 

Environment (Non-Food) 

- Executive, Environment 

Muahamad Sanuri Sarijan 

Director, Finance & 

Human Resource Division 

Manager, Finance & Human Resource 

- Accountant 

- Administrative Executive 

Wira Adam 

Director, Marketing & 

Market Development Division 

Manager, Marketing 

- Analyst, Europe 

- Analyst, Asia Pacific 

- Analyst, Sub-Continent 

Manager, Market Development 

- Analyst, Middle East 

- Analyst, Africa 

- Analyst, Americas 

Belvinder Kaur Sron 

Director, Promotions & 

Branding Division 

Manager, Promotions & Branding 

- Senior Executive, Promotions 

& Branding 

- Executive, Promotions & Branding 

- Advertising & Promotions Executive 

- Publications Executive 

Regional Managers 

- Americas 

- Europe 

- Africa 

- West Suez 

- East Suez 

- Pakistan 

- India 

- Bangladesh 

- China 

- Asia Pacific


 

chairman’s 

statement 


2008 was a remarkable year, one that was both rewarding 

and challenging for the Malaysian palm oil industry. 

Crude palm oil (CPO) production reached 17.7 million 

tonnes, recording a 12% increase over the previous year. 

The increase in oil yield and expansion of mature planted 

areas were the primary factors behind this growth. 

CPO prices soared in tandem with crude mineral oil to an all-time record of 

RM4,179.50 in March, enabling plantation companies to reap profits, although 

this proved to be short-lived. The industry witnessed another record of sorts 

when CPO prices dipped to an eight-year low at RM1,403 in November, partly 

due to a drop in the price of crude mineral oil. Rising palm oil stock levels 

from September, to a whopping 2.3 million tonnes by end November, aggravated 

sentiments. The shadow cast by potential over-supply in the oils and fats market 

affected CPO prices.


10 chairman’s statement (cont’d) 

Despite the challenges, palm oil contributed RM65.2 billion to Malaysia’s export revenue, or an increase of 44.3% over 2007. 

This was mainly due to high prices in the first half of the year. CPO production registered a 12.1% increase from 15.8 million 

tonnes in 2007, thanks to recovery of yield after the biological stress experienced the previous year. 

One milestone of the year was that exports to the United States of America surpassed 1 million tonnes, showing an increase of 

31.8% compared to 2007. This was largely due to enforcement of mandatory labelling of the trans-fatty acid content in foodproducts 

from January 2007. The growth in export volume to the US was also promoted by higher demand from the bio-fuel 

sector. 

China continued to be the major consumer of Malaysian palm oil despite a slight decline of 1.2% in imports. This was attributed 

to increased oilseed imports for local crushing, as well as absorption of palm oil from other sources. 

Sustainability has emerged as a key issue in recent years, especially in Europe. Germany, the United Kingdom, and the 

Netherlands are leading the European Union in formulating sustainability and certification criteria for bio-fuels. Year 2008 

saw more countries preparing to be on par with Germany, the United Kingdom, and the Netherlands for sustainability-related 

definitions and enforcement. MPOC has had to formulate effective responses and strategies to better safeguard the interests 

of Malaysian palm oil and to present the correct picture of many issues being debated in Brussels. Several programmes were 

organised to neutralise misconceptions about, and consolidate support for, Malaysian palm oil in the European Parliament. 

Meetings with key policy makers were held in conjunction with the working visit of YB Datuk Peter Chin Fah Kui, Minister of 

Plantation Industries and Commodities, to The Hague, Brussels and London. 

High energy prices in the first half of the year partially assisted the growth of the Malaysian bio-diesel sector. By the end of the 

year, 14 bio-diesel plants had been established, with a combined annual production capacity of 1.7 million tonnes. The widely 

accepted need to reduce greenhouse gas emissions has pushed countries to seek alternative sources of fuel, as well as lent 

urgency to production of sustainable palm oil for the bio-fuel sector. Malaysia’s own mandate for a B5 fuel supply saw keen 

interest in palm bio-fuel. 

These developments, along with the vital need to inform the world about sustainable agricultural and plantation practices in 

Malaysia, led MPOC to formulate the MALAYSIAPALM certification scheme. The initial target-group comprises manufacturers of 

palm bio-diesel. However, the scheme is also open on voluntary basis to oil palm growers, palm oil millers, refiners, traders and 

bio-diesel producers. It provides an opportunity for those who admitted to assure clients that their palm oil is obtained from oil 

palm cultivated on legal agricultural land, using good agricultural and management practices. 

MPOC organised the International Palm Oil Sustainability Conference for the first time to address growing concerns about palm 

oil and the environment. The industry’s efforts to translate Corporate Social Responsibility into action were given prominence. 

The Malaysian Palm Oil Wildlife Conservation Fund, established by MPOC, reflected collaboration, support and funding from 

Bursa Malaysia for an Orang Utan Survey by the Borneo Conservation Trust and the non-governmental organisation called 

HUTAN.


chairman’s statement (cont’d) 

11 

The Palm Oil Trade Fair and Seminar (POTS) series, which have become MPOC’s trademark event, were organised in Dubai, 

Mumbai and Nanjing. This followed the launch in Kuala Lumpur, themed ‘Changing Marketing Landscape – Challenges for 

Business Sustainability’. The international-level POTS were timely in view of issues confronting the global market and high 

prices of energy and essential food commodities. 

Print and electronic media promotional campaigns were undertaken in various regions, targeted at general consumers and 

medical practitioners in particular. These were in line with MPOC’s continuing efforts to highlight the health and nutritional 

benefits of palm oil. 

Another key event of the year was the Palm Oil Industry Leadership Award and Dinner, which was used as a platform to present the 

inaugural Palm Oil Industry Leadership Award (PILA). PILA was created to honour individuals whose leadership has contributed 

significantly to the well being of the Malaysian palm oil industry. The inaugural recipient was YABhg Tun Dr Lim Keng Yaik, a 

former Minister of Primary Industries. 

Two Council Members completed their term of service – Dato’ Sabri Ahmad (MPOA) and Mr Kwok Kian Hai (Pasir Gudang 

Edible Oils Sdn Bhd) served up to June 26 and August 27 respectively. Additions to the Council were Mr R Venugopal 

(MEOMA) and Mr Low Kock Ching (POMA). The Council was saddened by the sudden demise of Dato’ Low Mong Hua on 

April 13, 2008. The industry has lost a prominent leader who was at the helm of the Palm Oil Millers Association for 21 years. 

His contributions were immeasurable and he will be remembered with gratitude and respect. 

I would like to specially thank Dato’ Seri Lee Oi Hian who completed his tenure as Chairman of MPOC on Feb 21, 2009. 

Dato’ Seri Lee fulfilled his mandate with unwavering dedication over the 19 years of his involvement with MPOC, 13 years of 

which was as its Chairman. 

My heartfelt gratitude to fellow members of the Board of Trustees of MPOC for their tireless efforts and commitment in dealing 

with new issues and challenges faced by the industry. I would also like to thank the Malaysian Palm Oil Board, Malaysian Palm 

Oil Association, Palm Oil Refiners Association of Malaysia, Malayan Edible Oil Manufacturers’ Association, Malaysian 

Oleochemical Manufacturers Group, diplomatic and trade missions abroad and numerous other agencies that have provided 

invaluable support, assistance and guidance throughout the year. 

Finally, I extend my sincere appreciation to the management and staff of MPOC for their contributions and endeavour in all 

activities undertaken. I am confident that such diligence and perseverance will see us through the anticipated difficult times in 

the coming year, in the face of the unprecedented global economic slowdown.


12 

Malaysian palm oil 

industry performance 

2008 

ceo’s 

report 

Tan Sri Datuk Dr 

Yusof Basiron 

The world vegetable oils market was bullish for much 

of the year, as demonstrated by the sustained high 

demand for food and non-food products, as well as 

for bio-fuel. 

Palm oil prices in the first half of the year were boosted to levels which 

departed from the justification of supply and demand fundamentals, even 

hitting a historic high in March. A meltdown then saw prices losing more 

than half of their value. 

This was magnified by the fallout from the ‘credit crunch’ in the US financial 

market and rising palm oil stocks at home. Nonetheless, palm oil exports 

generated RM65.19 billion in revenue due mainly to the spike in prices.


ceo’s report (cont’d) 

13 

Total oil palm planted area stood at 4.49 million ha, up by 4.25% compared to the previous year (Table 1). Crude palm oil (CPO) 

production touched 17.73 million tonnes, significantly more by 1.91 million tonnes. This was attributed to recovery in overall 

yield and the larger mature area. Crude palm kernel oil production rose by 11.73% to 2.13 million tonnes from 1.91 million 

tonnes in 2007. 

Table 1: Oil Palm Planted Area and Output 

Jan-Dec 2007 Jan-Dec 2008 Change Change (%) 

Planted area (ha) 4,304,914 4,487,957 83,043 4.25 

Production (tonnes) 

Crude palm oil 5,823,746 7,734,439 1,910,693 2.07 

Crude palm kernel oil ,907,613 2,131,399 223,786 .73 

Closing Stocks (tonnes) 

Palm oil ,682,587 ,994,681 312,094 8.54 

Palm kernel oil 268,842 348,747 79,905 29.72 

Source: MPOB* 

* Figures as at February 15, 2009; subject to revision 

As an outcome of higher production and lower demand, palm oil closing stocks at the end of December stood at 1.99 million 

tonnes, or 18.54% more than in 2007. Palm kernel oil closing stocks were at 0.34 million tonnes, compared to 0.26 million 

tonnes previously. 

In terms of volume, export demand for palm oil and derived products was 11.12% higher year-on-year, reflecting higher 

availability (Table 2). Palm oil exports were recorded at 15.41 million tonnes, compared to 13.75 million tonnes the previous 

year, or up by 1.66 million tonnes. 

Oleochemical exports were, however, affected by the high price and declined by 3.18% to 2.07 million tonnes from 2.14 million 

tonnes in 2007. Additional production of bio-diesel led to 182,108 tonnes being exported, against the previous year’s level of 

95,013 tonnes. Exports of finished products doubled in volume at 670,570 tonnes, from 351,183 tonnes in 2007. 

Table 2: Export of Palm Oil and Derived Products (tonnes) 

Jan-Dec 2007 Jan-Dec 2008 Change (Vol) Change (%) 

Palm oil 3,746,823 5,408,753 1,661,930 2.09 

Palm kernel oil ,060,713 ,047,380 -13,333 -1.26 

Palm kernel cake 2,093,500 2,255,092 61,592 7.72 

Oleochemical products 2,140,173 2,072,221 -67,952 -3.18 

Finished products 351,183 670,570 319,387 90.95 

Bio-diesel 95,013 82,108 87,095 91.67 

Others 86,839 3,951 27,112 31.22 

Total Exports 19,574,244 21,750,075 2,175,831 11.12 

Source: MPOB* 

* Figures as at February 15, 2009; subject to revision


14 ceo’s report (cont’d) 

Malaysian palm oil exports grew by 12.09% over the comparative period. China, the European Union (EU), Pakistan, United 

States (US) and India were the biggest buyers, accounting for 60% or 8.3 million tonnes of the volume (Table 3). China remained 

the single largest importer, absorbing 3.79 million tonnes or 24.62% exports. EU and Pakistan showed an intake of 2.05 million 

tonnes and 1.25 million tonnes respectively. 

Table 3: Malaysian Palm oil Exports to Selected Destinations (tonnes) 


China 3,840,389 3,794,494 -45,895 -1.20 

EU-27 2,063,226 2,052,771 -10,455 -0.51 

Pakistan ,070,067 ,257,396 87,329 7.51 

India 511,167 970,734 459,567 89.91 

US 794,920 ,047,668 252,748 31.80 

North East* 888,443 883,741 -4,702 -0.53 

ASEAN 803,791 756,579 -47,212 -5.87 

Bangladesh 54,494 271,265 6,771 75.58 

Egypt 84,588 347,558 62,970 88.29 

UAE 360,509 356,395 -4,114 -1.14 

Total Exports 13,746,823 15,408,753 1,661,930 12.09 

Note: * Includes Japan, South Korea, North Korea & Taiwan 

Source: MPOB* 


The US imported 1.04 million tonnes of Malaysian palm oil, up by 31.8% from the previous year. This was due partly to 

implementation of mandatory labelling of the trans-fatty acid content in manufactured foods, enforced from January 2007. 

Higher demand was also generated by use of palm oil as feedstock for bio-fuel production.



15 

India held a clear lead in year-on year percentage growth. Changes in its import policy regime resulted in a smoother in-flow of 

palm oil, leading to 970,734 tonnes being taken up against 511,167 tonnes the year before. The export volume to Egypt recovered 

to 347,558 tonnes against a low of 184,588 tonnes the previous year. 

Table 4: Malaysian Palm Oil Exports by Region (tonnes) 


Asia Pacific 5,777,817 5,678,489 -99,328 -1.72 

Sub-Continent ,907,482 2,708,341 800,859 41.99 

Middle-East ,446,303 ,903,409 457,106 31.61 

Africa ,248,467 ,260,314 ,847 0.95 

Europe 2,416,116 2,668,437 252,32 0.44 

Americas 921,408 ,189,763 268,355 29.12 

Others 29,230 - -29,230 - 

Total 13,746,823 15,408,753 1,661,930 12.09 

Source: MPOB* 


Despite the volatility in palm oil prices, an all-time high surpassing RM4,000 per tonne of CPO was achieved in March. An 

average price of RM3,465 per tonne was recorded in the first quarter but toward year’s end, the price plunged to about RM1,500. 

Average local delivered CPO price was RM2,773, against RM2,516.50 in 2007 (Table 5). 

Average export prices of RBD palm oil, RBD palm olein, and RBD palm stearin rose respectively to RM2,699 (by 2.2%), RM3,055 

(18%) and RM2,511.50 (1.6%) per tonne. The price of Palm Fatty Acid Distillates declined by 13.2% to RM1,674 per tonne. 

Table 5: Average Price of Palm Oil and Derived Products 


Domestic Price* (RM/tonne) 

Crude palm oil 2,516.50 2,773.00 256.50 0.19 

Crude palm kernel oil 2,807.50 3,437.00 629.50 22.42 

Export Price (US$/tonne) 

RBD palm oil 771.50 806.00 34.50 4.47 

RBD palm olein 753.00 922.00 69.00 22.44 

RBD palm stearin 733.50 774.50 41.00 5.59 

PFAD 563.00 501.00 -62.00 -11.01 

Note: *Average for Malaysia 

Source: MPOB* 

* Figures as at February 15, 2009; subject to revision


16 ceo’s report (cont’d) 

Export earnings from all palm oil products improved significantly to RM65.19 billion (Table 6). Palm oil sales alone brought 

in 44.39% more in revenue, while revenue from palm kernel oil and oleochemical products increased by 33.98% and 29.96% 

respectively. Finished products accounted for RM2.65 billion, more than twice the previous year’s value of RM1.09 billion. 

Table 6: Revenue from Export of Palm Oil and Derived Products (RM million) 


Palm oil 33,186.7 47,917.6 4,730.9 44.39 

Palm kernel oil 3,104.9 4,159.8 ,054.9 33.98 

Palm kernel cake 761.7 990.0 228.2 29.96 

Oleochemicals 6,679.6 8,695.3 2,015.7 30.18 

Finished products ,098.3 2,656.5 ,558.2 41.87 

Bio-diesel 253.2 610.7 357.5 41.19 

Others 84.7 64.5 79.8 94.20 

Total Revenue 45,169.1 65,194.4 20,025.2 44.33 

Source: MPOB* 


Global scenario 

World production of oils and fats stood at 160 million tonnes. Of this, palm oil and palm kernel oil jointly accounted for 48 

million tonnes (30%), leading other sectors. Soybean oil was next with 37.16 million tonnes (23%). 

World Oils and Fats Production, 2008 

Coconut 

(160.03 million tonnes) Soybean 

Others 

2% 

23% 

11% 

Animal Fats 

15% 

Sunflower 

7% 

Rapeseed 

12% 

Palm &Palm Kernel 

30% 

Source: Oil World, Dec 12, 2008 & Jan 30, 2009 issues



17 

About 38% of the oils and fats produced were traded. Of the 60.3 million tonnes of oils and fats exported worldwide, palm oil 

and palm kernel oil again took top ranking, at about 60% of the total. 

World Oils and Fats Export Trade, 2008 

(60.30 million tonnes) 

Rapeseed 

4% 

Sunflower 

6% 

Animal Fats 

6% 


4% 

Coconut 

3% 

Soybean 

17% 

Palm & Palm Kernel 

60% 

Source: Oil World, Dec 12, 2008 & Jan 30, 2009 issues 

Malaysia contributed close to 11% to the global oils and fats output through 17.7 million tonnes of palm oil. It also held 45% 

of the market share, thereby maintaining dominance of the palm oil trade. 

World Palm Oil Exporters, 2008 

(33.48 million tonnes) 

Thailand 

1% 

PNG 

1% 


10% 

Malaysia 

45% 

Indonesia 

43% 

Source: Oil World, Dec 12, 2008 issue


18 


Outlook for 2009 

Among the factors that had led to the plunge in CPO price towards the end of 2008 was concern over large palm oil stocks; 

decline in export trade resulting from apprehension over potential default; and difficulty in obtaining credit because of the 

global financial crisis. With the onset of the global economic slowdown and recession in some trading countries, there continue 

to be doubts over the CPO price in 2009. 

The Malaysian Government’s measures to stimulate the economy have addressed the immediate concerns of the palm oil sector, 

and enabled it to brace itself for difficulties ahead. The steps are linked to supply management, such as the replanting scheme; 

stimulation of domestic demand through the policy on bio-diesel blends; and allocation of financial credit to selected importing 

countries to bolster export growth. 

Global oils and fats production for the 2008/09 season is expected to increase by 3.34% to 164 million tonnes, compared to 

160 million tonnes currently. Demand growth is expected to be sustained at 3.87%. 

The tightness in supply may be attributed to lower soybean oil output resulting from crop losses in South America. Hence, overall 

oils and fats supply could lag behind consumption, which may result in lower stocks of 17.55 million tonnes against 17.63 

million tonnes currently. 

Palm oil output is expected to reach 44.9 million tonnes, up by less than 1.9 million tonnes compared to 4.14 million tonnes 

in 2008. Malaysia’s CPO production is estimated to rise marginally, or the least remain in the vicinity of 17.6 million tonnes, 

due to the seasonal slowdown in yield. 

While this may be positive for the outlook of palm oil prices, the key variable of recovery will be the strength of external 

demand for oils and fats – and this has already been shown to be susceptible to recession in developed countries. 

The extent of recession will determine the outlook for the larger global economy, while the fiscal measures undertaken will 

determine the pace of demand for palm oil, for both food and bio-fuel purposes.


19 

market overview


20 asia pacific 

MARKET OVERVIEW 

The region’s intake of oils and fats registered 12.07 million tonnes, marginally lower than the 12.48 million tonnes absorbed in 

2007. This was attributed mainly to the sharp decline in soybean oil imports by China, following a bumper harvest at home. 

Palm oil imports bucked the trend of lower regional demand for oils and fats, and continued to lead overall imports with a tally 

of 7.57 million tonnes. It benefited from the crisis in Argentina which affected soybean exports. As a result, the palm oil market 

share rose from 57.7% to 62.7%. 

Table 1: Asia Pacific – Oils and Fats Imports (‘000 tonnes) 


PO - Malaysia 5,777.81 5,678.5 -99.3 -1.7 

PO - Indonesia 1 1,428.0 ,886.5 458.5 32.1 

SBO 2 3,319.8 2,640.2 -679.6 -20.5 

RSO 3 424.1 279.8 -144.3 -34.0 

PKO - Malaysia 352.7 325.2 -27.5 -7.8 

PKO - Indonesia 1 318.1 325.4 7.3 2.3 

CNO 1 95.9 254.5 58.6 29.9 

Tallow & Grease 4 574.5 593.7 9.2 3.3 

Butter 5 87.2 85.4 -1.8 -2.1 

Total 12,478.11 12,069.20 -408.9 -3.3 

Sources: Oil World; MPOB 

Note: 

1 Exports of Indonesia (Jan-Aug) 

2 Exports of Argentina, Brazil (Jan-Dec) & US (Jan-Nov) 

3 Exports of Australia (Jan-Nov) & Canada (Jan-Oct) 

4 Exports of Australia, New Zealand, US (Jan-Nov) & Canada (Jan-Oct) 

5 Exports of Australia & New Zealand (Jan-Nov) 

Regional palm oil imports went up by 557,000 tonnes from 7.21 million tonnes in 2007. Indonesia’s contributions grew by 

32% year-on-year, even though it had raised export tax to as high as 20%. Exporters used Malaysian ports as transit points to 

bypass the tax, for onward shipping of palm oil to final destinations.


asia pacific (cont’d) 

21 

Malaysian palm oil exports fell by 99,328 tonnes (1.7%) year-on-year. However, the volume of 5.68 million tonnes still took 

the biggest slice of the market. China, which remained the region’s largest importer, absorbed 3.89 million tonnes compared to 

3.93 million tonnes the previous year. 

Table 2: Asia Pacific – Import of Malaysian Palm Oil (tonnes) 


China 3,939,497 3,892,442 -47,055 -1.2 

North East 889,316 884,800 -4,516 -0.5 

ASEAN 803,791 756,579 -47,212 -5.9 

Oceania 45,213 44,662 -551 -0.4 

Total 5,777,817 5,678,489 -99,328 -1.7 

Source:MPOB 

After a strong run of growth in 2007, the ASEAN market experienced a slow down in imports which stood at 756,579 tonnes, 

down by 5.9%, in the year under review. Higher palm oil prices discouraged intake, particularly in price-sensitive markets like 

Vietnam where imports went down by 49,212 tonnes (19.6%). 

Table 3: Asia Pacific – Import of Malaysian Palm Oil by Product (tonnes) 


CPO/CPL/CPS 230,344 348,669 8,325 51.4 

RBD PO 452,699 442,384 -10,315 -2.3 

RBD PL 4,102,310 3,952,516 -149,794 -3.7 

RBD PS 733,349 565,526 -167,823 -22.9 

PFAD 24,947 31,068 6,121 24.5 

CO/DPL 39,707 35,306 -4,401 -11.1 

DFPL/Super PL 47,637 44,539 -3,098 -6.5 

PMF/Soft Stearin 59,247 74,999 5,752 26.6 

Others 87,577 83,482 95,905 .4 

Total 5,777,817 5,678,489 -99,328 -1.7 

Source: MPOB


22 


RBD palm oil, palm olein and palm stearin were still the major products imported from Malaysia, albeit in smaller quantities 

than in 2007. The drop in demand led to overall exports of palm-based products falling to 87.4%, from 91.5% previously. 

However, the impact was partly offset by increased CPO imports by China. 

Table 4: Asia Pacific – Import of Malaysian Palm Oil by Country (tonnes) 


China 3,939,497 3,892,442 -47,055 -1.2 

North East 

Japan 527,344 546,968 9,624 3.7 

Mongolia 873 ,058 86 21.3 

North Korea 2,975 8,052 5,077 70.7 

South Korea 222,007 96,572 -25,364 -11.4 

Taiwan 36,117 32,150 -3,967 -2.9 

Sub-total 889,316 884,800 -4,444 -0.5 

ASEAN 

Brunei 3,424 3,160 -264 -7.7 

Cambodia 5,127 5,202 75 .5 

Indonesia 20,037 2,043 -17,994 -89.8 

Philippines 28,062 61,453 33,391 26.1 

Singapore 379,708 354,966 -24,742 -6.5 

Thailand 5,909 27,443 ,534 72.5 

Vietnam 251,524 202,312 -49,212 -19.6 

Sub-total 803,791 756,579 -47,212 -5.9 

Oceania 

Australia 20,934 8,019 -2,915 -2.4 

Fiji ,203 2,366 ,163 96.7 

Kiribati 7 9 2 .8 

New Caledonia 95 66 -29 -30.5 

New Zealand 21,783 22,293 510 2.3 

PNG 838 ,734 896 06.9 

Solomon Is 326 42 -184 -56.4 

Vanuatu 3 0 -13 -100.0 

Tonga 4 0 -4 -100.0 

French Polynesia 0 22 22 NA 

Sub-total 45,213 44,661 -552 -0.4 

Total in Region 5,777,817 5,678,489 -99,328 -1.7 

Source: MPOB



23 

PALM OIL EDUCATION PROGAMME FOR TERTIARY STUDENTS 

Singapore 

MPOC initiated the programme to enable Singaporeans to gain better understanding of palm oil. Lectures on palm oil and its 

benefits were delivered at the following institutions of higher education. 

1. Ngee Ann Polytechnic (May 2) 4. Singapore Polytechnic (July 16) 

2. Temasek Polytechnic (May 9) 5. Singapore Institute of Food Science & Technology (July 18) 

3. Nanyang Polytechnic (July 8) 6. National University of Singapore (Aug 19) 

1 2 3 

4 5 6 

Nanyang Polytechnic-Jiangnan University 

Inaugural Joint Scientific Conference, 

(Sept 23-24) 

At the invitation of the School of Chemical and Life Sciences of 

Nanyang Polytechnic in Singapore, MPOC presented technical 

information on the nutritional benefits and food applications of 

palm oil. Faculty members of the School of Food Science and 

Technology of Jiangnan University, China, were at the conference as well. MPOC also took part in an exhibition that enabled 

participants to obtain additional information on palm oil. 

Vietnam 

Hanoi Hanoi University of Technology (Dec 5) 

This educational programme for students majoring in science, technology and medicine drew 275 students. Topics included 

nutritional aspects of palm oil, food and non-food applications, oleochemicals, and global trade in palm oil.


24 


PROMOTIONAL ACTIVITIES 

Symposium on Palm Oil in Conjunction with the 16 th National Convention of Council of 

Hotel and Restaurant Educators of The Philippines, Manila (Jan 24-26) 

MPOC’s participation was targeted to provide updates on palm oil, nutrition and food applications. The audience comprised 

members of the hospitality education industry, which is enjoying rapid growth. MPOC contributed through a lunch symposium 

and an exhibition. 

Personal Care and Homecare Ingredients Exhibition, Shanghai, China (March 17-19) 

MPOC participated in the exhibition and organised a half-day seminar to encourage the use of palm-based oleochemicals in 

personal care, cosmetic and home-care products which currently enjoy high demand in China. More than 300 local and foreign 

exhibitors took part. 

Food Ingredients China, Shanghai (March 26-28) 

One of the most authoritative trade shows on food additives and 

ingredients in Asia, this attracted over 1,100 exhibitors from more than 

30 countries and regions. Three Malaysian companies – Carotech Bhd, 

MOI International Food Co Ltd and Taiko International Trade (Shanghai) 

Co Ltd – participated alongside MPOC to demonstrate the versatility of 

palm oil. This also lent an opportunity to establish contacts with 

manufacturers from all over China. 

Health and Nutrition Exhibition, Beijing, China 

(April 3-5) 

With food safety a major concern, the exhibition was an ideal platform 

to exchange information and keep abreast of market trends. MPOC 

reinforced the health properties of palm oil, while fostering links with 

key players in China.



25 

Food and Hotel Asia (FHA) Exhibition, Singapore 

(April 22-25) 

MPOC took part in the ‘FoodAsia’ category of the exhibition under 

the pavilion hosted by MATRADE. FHA is acknowledged as one of 

Asia’s largest food and hospitality trade events. Apart from trade and 

market updates, MPOC provided information on technical aspects of 

palm oil to members of the region’s food and hospitality industry. 

China Bakery Exhibition, Guangzhou (May 13-15) 

The event showcased the wide range of applications of palm oil in the 

baking and confectionery industry. MPOC, in partnership with MOI 

International Food Co Ltd, reached out to users and manufacturers of 

bakery fats, to establish contacts. 

Seoul Food and Hotel Exhibition, South Korea 

(May 14-17) 

The fourth biggest food exhibition in Asia, it attracted an estimated 

35,000 visitors. There were 1,052 exhibitors, with more than 450 of them from 

34 countries. MATRADE’s Malaysia Pavilion grouped 11 companies. 

MPOC joined Sime Darby Plantation Sdn Bhd to promote palm-based 

solid and specialty fats. 

Thaifex 2008 International Food Exhibition & Conference, Bangkok, Thailand 

(May 21-25) 

MPOC collaborated with Carotech Bhd and Meetco Sdn Bhd in taking part in the exhibition, which had more than 

50,000 visitors. The event is the largest food event in Asia. A paper entitled ‘Trans-fat alternative using palm oil and mixed oil’ 

was presented at the conference, which had about 100 participants.


26 


Seminar on ‘Development of the Oleochemical Industry in China’, Huangshan (June 17-18) 

The inaugural meeting of the Oleochemical Application Committee attracted some 200 participants. This was a useful event 

to paint a broad perspective of Malaysian palm oil in relation to its uses in the oleochemical sector. 

International Conference on Sustainable Agriculture, Sapporo, Japan (July 2-6) 

The conference addressed growing concerns over supplies of food and energy derived from agricultural sources. It concluded 

with the Sapporo Declaration on Sustainable Agriculture for Food, Energy and Industry, which reflected input and proposals 

from 11 sessions at which 49 papers were presented. 

In addition, there were 53 poster presentations including one from MPOC entitled ‘The Sustainability Edge of the Malaysian 

Palm Oil Industry’. It highlighted the strategies, principles and policies of the Malaysian palm oil industry in providing the 

world with sustainable palm oil. Japanese scientists and researchers, who were not aware of such sustainability practices, 

found the information relevant to their work. 

EU Bio-fuels Workshop on ‘Opportunities for Southeast Asia’, Jakarta, (July 11) 

MPOC joined the Malaysian delegation to raise issues resulting from the EU’s proposed Directive on Renewable Energy for 

Member-States. The Directive is seeking to establish national renewable energy targets that result in an overall binding target 

of a 20% share of renewable energy sources in energy consumption, and a binding 10% minimum target for renewables, 

such as bio-fuels, in transport in 2020. The Directive also sets environmental sustainability criteria for bio-fuels to ensure that 

these are produced in a sustainable manner. 

Some of the key issues the Malaysian delegation raised were exclusion of social contributions of palm oil, unwarranted default 

values for palm bio-diesel, inaccuracy of inefficiency value, absence of uniformity in cut-off dates, and the use of different 

mechanisms for recognising ‘green’ electricity and greenhouse gas savings. The European Commission commented that it 

would study the issues and said it welcomes further discussions with Malaysia.



27 

47 th Annual Convention of the Philippine 

Association of Food Technologists Inc, Manila 

(Sept 1-3) 

This is a key meeting for food scientists and technologists in The 

Philippines. MPOC’s technical presentation updated participants on 

food technology and nutrition. It highlighted the advantages of using 

palm oil as a substitute for partially hydrogenated oils, which have 

been found to create hazardous trans-fatty acids in food formulations. 

This was reinforced through product displays and materials distributed during the parallel trade exhibition. 

17 th Asia Food Expo, Manila, The Philippines 

(Sept 3-6) 

This is the biggest local exhibition catering to food-related products and 

services. MPOC, working with representatives of Sime Darby Plantation 

Sdn Bhd and Soon Soon Oilmills Sdn Bhd, helped educate players in 

the industrial oils and fats sector on the advantages of using palm-based 

products. This was MPOC’s first participation in the event. It joined nine 

companies in the Malaysia Pavilion under the auspices of MATRADE. 

POTS China, Nanjing (Oct 16-18) 

The China leg of MPOC’s Palm Oil Trade Fair and Seminar was a key 

programme for the region. It was co-organised with the China Council 

for Promotion of International Trade in Grain, Development and Exchange 

Centre of State Administration of Grain and China National Vegetable 

Oil Association. 

The Malaysian delegation included Bursa Malaysia, Lipochem (M) Sdn Bhd, Lipochem Bio-Tech Sdn Bhd, IPalm Supplies Sdn 

Bhd, Sime Darby Plantation Sdn Bhd, Natural Oleochemicals Sdn Bhd, FELDA IFFCO Sdn Bhd, My Flexitank Industries Sdn Bhd 

and East China Cereals and Oils Electronics Commerce Co Ltd. They entertained enquires from food and non-food enterprises 

and promoted various applications and production technology of Malaysian palm oil and its derivatives.


28 


China Confectionery and Ice Cream Exhibition, 

Tianjin (Oct 21-24) 

MPOC and MOI International Food Co Ltd took part to promote the 

suitability of palm oil and palm kernel oil in making confectionery and ice 

cream. Leading producers, manufacturers, ingredient suppliers, suppliers 

of equipment were among the participants. 

9 th Western China International Economy and 

Trade Fair, Chengdu (Oct 27-30) 

MATRADE led the Malaysian delegation comprising representatives of 

MPOC, Malaysian Timber Council, Tourism Malaysia and Redwire Global 

Solutions Sdn Bhd. Each was assigned an information counter. 

MPOC displayed samples of palm oil and palm-based products, 

distributed brochures and responded to enquires. The information went down well, with many showing interest in the products 

and asking about availability in the local market for use in both the food and non-food sectors. 

International Conference on ‘Functional Foods and Edible Oils – The Future’, Auckland, 

New Zealand (Nov 12-13) 

Food researchers, scientists and industry players were at the conference which focused on oils and fats issues and applications. 

MPOC sponsored three speakers who covered current issues. The lectures were on palm oil as the preferred substitute for 

hydrogenated fat in food products; stability and frying characteristics of palm olein; and health benefits of natural antioxidants 

from palm oil. MPOC set up a trade stand where participants could seek additional information on food and non-food 

applications of palm oil. 

Personal Care Ingredients Exhibition, Bangkok, Thailand (Nov 16-19) 

MPOC participated in the exhibition and organised a half-day seminar. The objective was to expand the use of palm-based 

oleochemicals as ingredients in personal care and cosmetic products. There were over 300 exhibitors. Technical material and 

papers were presented during the seminar.



29 

RSPO 6 th Roundtable Meeting, Bali, Indonesia (Nov 17-20) 

Almost 550 participants, including MPOC representatives, were at the sixth meeting of the Roundtable for Sustainable 

Production of Palm Oil. It culminated in the General Assembly at which three resolutions were tabled for a vote: 

• Wetlands International sought a moratorium on palm oil from tropical peatland. This will be discussed together with the 

issue of greenhouse gas emissions. A working group has been formed to develop the terms of reference. 

• Oxfam International wanted a Code of Conduct to which members could commit and subsequently report annual progress. 

This was supported by IOI Group, Kulim, Sawit Watch and WWF International. As the majority of members agreed, the 

resolution was adopted. 

• WWF International asked for procedures to assure compliance with the RSPO Principles and Criteria in relation to new 

plantings. New Britain Palm Oil Ltd supported the move. A working group will be established to discuss the resolution 

and arrive at a decision by June 2009. The resolution will then be tabled at the next General Assembly in 2009.


30 sub-continent 


A significant increase exceeding 1.3 million tonnes (16.5%) was seen in the region’s oils and fats imports. India recorded 

the largest volume of 1.62 million tonnes (up by 31.4%) to 6.78 million tonnes, following the removal of import duty in April 

as well as a dramatic drop in vegetable oil prices in the international market. Anticipated reinstatement of import duty by the 

Indian government with effect from 2009 also prompted additional imports before the year ended. 

Table 5: Sub-Continent – Oils and Fats Imports by Country (‘000 tonnes) 


India 1 5,163,790 6,784,034 1,620,244 31.4 

Pakistan 2 ,845,348 ,654,755 -190,593 -10.3 

Bangladesh 3 ,161,247 ,080,573 -80,674 -6.9 

Sri Lanka - - - - 

Total 8,170,385 9,519,362 1,348,977 16.5 

Sources: 1 SEA of India; 2 MPOC Pakistan; 3 MPOC Bangladesh 

Pakistan and Bangladesh intake fell by 10.3% and 6.9% respectively. Their intake was generally affected by the global 

economic slowdown, cautious buys by importers due to market volatility, and lower consumer purchasing power. 

Palm oil and palm fats regained their market share at 86% from soybean oil which held 10.8%. Crude palm kernel oil, other soft 

oils and tallow made up the balance. The price differential between palm oil and soybean oil helped increase regional offtake 

of palm oil. In India especially, a huge price discount against soybean oil resulted in clear preference for palm oil which is 

currently free of import duty. 

Table 6: Sub-Continent – Oils and Fats Imports by Product (tonnes) 


PO 1 5,694,609 7,796,315 2,101,706 36.9 

SBO ,766,284 ,034,807 -731,477 -41.4 

RSO/MO 72891 26840 -46,051 -63.2 

SFO 60,550 66,910 -93,640 -58.3 

Tallow 50,543 31,100 -19,443 -38.5 

CPKO 04,969 45,387 40,418 38.5 

CNO 8,553 23,479 4,926 26.6 

Other Palm Fats 2 296,130 390,725 94,595 31.9 

Others 3 5,856 3,799 -2,057 -35.1 

Total 8,170,385 9,519,362 1,348,977 16.5 

Sources: SEA of India; MPOC Pakistan; MPOC Bangladesh 

Note: 

1 CPO, CPL, RBD PO, RBD PL & Palm Stearin 

2 PAO, PFAD, PKFAD, PKAO & ROFS 

3 Refined vegetable oil, butter oil & ghee/shortening in consumer packs


sub-continent (cont’d) 

31 

The price discount boosted imports of palm oil and its derivatives, which recorded outstanding growth of 36.7%. India led with 

a 55.5% increase in volume, followed by Bangladesh with 40%. In contrast, Pakistan reduced intake of palm oil by 5.78% as part 

of a move to lower all its oils and fats imports. 

Table 7: Sub-Continent – Import of Palm Oil by Product (tonnes) 


CPO 3,652,148 5,019,838 1,367,690 37.4 

CPL 537,288 668,210 30,922 24.4 

RBD PO 2,299 345,638 343,339 4,934.3 

RBD PL ,280,535 ,631,621 351,086 27.4 

Palm Stearin 222,339 31,008 -91,331 -41.1 

CPKO 04,969 45,387 40,418 38.5 

PFAD 253,919 374,167 20,248 47.4 

Others 1 42,2 6558 -25,653 -60.8 

Total 6,095,708 8,332,427 2,236,719 36.7 

Sources: SEA of India; MPOC Pakistan; MPOC Bangladesh 

Note: 1 PKFAD, PKAO, ROFS & PAO 

CPO was the most popular palm-based product with imports amounting to 1.36 million tonnes (up by 37.4%), or more than 

60% of the region’s volume. India alone absorbed more than 86% of the supply. Refined products – RBD palm oil and RBD palm 

olein – went up by 54.1%, making up 23.7% of the overall trade in palm oil. RBD palm oil imports jumped markedly to 

345,638 tonnes from just 2,299 tonnes previously, due to higher offtake by Pakistan. The record volume was due to price 

competitiveness against domestic sources of RBD palm oil.


32 sub-continent (cont’d) 

In spite of high prices of vegetable oils up to the third quarter of the year, the region’s imports of Malaysian palm oil 

improved by 41.9%. India, Pakistan and Bangladesh registered increases of 89.9%, 17.5% and 75.6% respectively, expanding 

the volume by 763,667 tonnes. Malaysian exports to India rose by 459,567 tonnes and to Pakistan by 187,329 tonnes. 

Table 8: Sub-Continent – Import of Malaysian Palm Oil by Country (tonnes) 


India 511,167 970,734 459,567 89.91 

Pakistan ,070,067 ,257,396 87,329 7.51 

Bangladesh 54,494 271,265 6,771 75.58 

Sri Lanka 94,157 61,576 -32,581 -34.60 

Nepal ,818 495 -1,323 -72.79 

Bhutan - - - - 

Maldives 2,596 2,187 -409 -15.74 

Myanmar 60,179 31,757 71,578 8.94 

Sub-total ,894,478 2,695,410 800,932 42.28 

Afghanistan 9 73 82 90.47 

Kazakhstan ,404 3,280 ,876 33.62 

Uzbekistan ,218 8,832 -2,386 -21.27 

Turkmenistan 9 21 30 33.15 

Tajikistan 60 83 23 37.85 

Kyrgyzstan 40 442 302 215.41 

Sub-total 3,004 2,931 -73 -0.56 

Total 1,907,482 2,708,341 800,859 41.99 

Source: MPOB 

Exports to Sri Lanka and Nepal dropped as anticipated, as Indian traders began importing directly from Malaysia following 

removal of import duty at home. Palm oil was previously shipped via the two countries to take advantage of duty exemption 

under the regional Free Trade Agreement.


pakistan 

33 


Market Research on Product Ingredients, Lahore and Karachi (Jan 28-Feb 28) 

The three objectives were to identify major suppliers of products for the industrial frying sector; to get to know industrial users 

and potential users of palm olein; and to assess the likely growth of the snack food industry in the next five years so as to 

project the demand for palm olein. The snack food sector is shared by organised and non-organised players in the ratio of 75:25. 

The market is estimated to be worth almost 1.3 billion rupees. There are bright prospects for use of palm olein, especially with 

strong awareness of its attributes. 

Market Visit to Kazakhstan (June 2-6) 

The main purpose was to establish new contacts, strengthen relations with the oils and fats industry, and to explore the 

possibility of conducting marketing activities, including the Programme for Rebuilding and Increasing Malaysia’s Exports. 

Launch of Palm Olein-based Cooking Oil, Karachi 

(Aug 5) 

MPOC provided Farooq Oil Industries a grant from the Programme for 

Rebuilding and Increasing Malaysia’s Exports to launch Pakistan’s first 

palm olein-based blended cooking oil. MPOC assisted in the brand 

activation exercise, which received enthusiastic response from 

consumers in Karachi and its surroundings. Soneri, a blend of Malaysian 

palm olein and canola cooking oil, is the first oil to be made available in a wide range of consumer packs. Pakistan’s soft 

oils market has shown promising growth in the last 10 years. The launch of Soneri cooking oil is the first step in introducing 

Malaysian super olein in the consumer market. 

‘MPO Delightful Dining’ TV Cooking Show 

(November 2008-March 2009) 

MPOC’s cooking show is aired every Friday at 4pm on Masala TV, 

which has the highest ratings among cooking channels.


34 pakistan (cont’d) 

Dawn ‘All about Lifestyles’ Exhibition, Karachi 

(Dec18-20) (Dec 18-20) 

MPOC Pakistan has supported and benefited from the exhibition since 

2001. A consumer survey was conducted to gauge awareness and 

perceptions of palm oil as a premium liquid oil for cooking and frying. 

Efforts were made to elevate the image of palm oil as an ingredient of 

vanaspati, and to get leading cooking oil brands to endorse palm oil and 

its role in their products.


india 

35 


Panacea Expo, Mumbai (Jan 30-Feb 1) 

The biennial exhibition of natural products, services and ingredients attracted a large number of exhibitors representing the 

food and beverage and personal care sectors. MPOC showcased palm-based products, disseminated information and presented 

a paper on palm oil. 

POTS Mumbai & Ministerial 

Mission (May 29-30) 

A maiden project for MPOC in India, the event was 

supported by 270 participants. Ten papers were 

presented by international and local speakers, 

covering global perspectives of the oils and fats 

business, technical trends and new demands, and 

price outlook and market direction. 

In tandem with the event, YB Datuk Peter Chin Fah 

Kui, the Minister of Plantations Industries and 

Commodities, led a mission representing various companies and 

associations. They included Sime Darby Plantation Sdn Bhd, IJM, Sawit 

Kinabalu, PORAM, MPOC, Malaysian Palm Oil Board and Bursa 

Malaysia. 

Meetings were held with the Solvent Extractors Association of India and 

the Minister of Agriculture, Consumer Affairs and Public Distribution. 

Discussions centred on promoting collaboration with the Malaysian business community and issues related to trade barriers. 

In-cosmetics India 2008, Mumbai (Sept 17-18) 

MPOC participated in the exhibition on personal care and home-care ingredients, as well as organised a half-day seminar for 

formulation chemists and manufacturers of such products. The objective was to increase awareness of palm-based oleochemical 

applications and to boost the use of palm-based oleochemicals in formulations for cosmetics, soap, and personal care and 

detergent products. Technical articles and journals were made available during the seminar, at which papers were presented. 

More than 200 exhibitors took part in the event.


36 

bangladesh 


Showcase Malaysia 2008, Dhaka (March 20-22) 

Organised by the Bangladesh-Malaysia Chamber of Commerce and Industry in cooperation with Malaysia South-South 

Association, the event enabled three local producers of palm olein-based brands to promote and market their products at the 

MPOC pavilion. Information on the nutritional and beneficial attributes of palm oil was disseminated to visitors through a video 

recording, leaflets, booklets and brochures. 

National Cardiac Conference, Dhaka (April 25) 

MPOC Dhaka sponsored the conference for some 500 leading cardiologists and cardiac surgeons. A paper was delivered on 

‘Edible Oils and Their Role in Prevention of Heart Disease’, highlighting the beneficial properties of palm oil in this regard. 

‘The Monitor-Malaysian Palm Oil Chef of the Year’ Competition, Dhaka (Aug 6) 

MPOC Dhaka office signed a MoU with The Bangladesh Monitor to sponsor the competition as Title Sponsor for the 

second time. The event was launched at a press conference on Aug 13 and the winner selected in November. The programme 

was aimed at popularising Malaysian palm oil among end-users like home-makers and professional chefs. 

Seminar on Palm Oil, Dhaka (Oct 28) 

A seminar on ‘Cardiac-friendly Edible Oil’ was jointly organised by MPOC, Ibrahim Cardiac Hospital and Research Institute 

(ICHRI) and Ibrahim Medical College (IMC). There 300 participants comprised eminent cardiologists and medical doctors 

from the ICHRI and the Bangladesh Institute of Research and Rehabilitation in Diabetes, Endocrine and Metabolic Disorder 

Hospital, as well as professors and students of IMC. The seminar educated participants on the comparative advantages and 

disadvantages of edible oils and their impact on cardiac health. In this respect, it was highlighted that palm oil has a positive 

effect on cardiac health. 

Scientific Seminar on Palm Oil, Dhaka (Oct 29) 

A scientific seminar on ‘Role of Edible Oil in Ischaemic Heart Disease’ was organised by MPOC and the Academic and Research 

Cell of the Department of Cardiology, University Cardiac Centre, Bangabandhu Sheikh Mujib Medical University. About 350 

medical professionals and students attended the seminar to obtain updated information and research findings on the role of 

edible oils in preventing heart disease. The beneficial role of palm oil was emphasised in maintaining a healthy heart, either 

used on its own in blends with other edible oils.


middle east 

37 


Oils and fats imports grew by 621,007 tonnes (up by 14.5%), bringing the region’s total to 4.89 million tonnes. The volume of 

soybean oil increased marginally to about 1.61 million tonnes, while that of sunflower oil was significantly higher by 173,000 

tonnes to record 252,000 tonnes. 

Palm oil broke the dominance of soybean oil with a combined volume of 2.7 million tonnes from Malaysia and Indonesia. 

This was driven by the competitive pricing of palm oil vis-à-vis soybean oil. 

Table 9: Middle East – Oils and Fats Imports (‘000 tonnes) 


PO - Malaysia ,446,303 ,903,410 457,107 31.6 

PO - Indonesia 1 888,000 885,000 -3,000 -0.3 

SBO 2 ,603,000 ,617,900 4,900 0.9 

SFO 3 79,000 252,000 73,000 219.0 

Corn Oil 4 261,900 240,900 -21,000 -8.0 

Total 4,278,203 4,899,210 621,007 14.5 


Note: 

1 YTD Imports for Jan-Aug only 

2 YTD Imports from US (Jan-Nov); Argentina & Brazil (Jan-Dec) 

3 YTD Imports from Argentina (Jan-Oct) 

4 YTD Imports from US (Jan-Nov) & Brazil (Jan-Dec) 

Malaysian palm oil made up 1.9 million tonnes of overall imports, or 457,107 tonnes (31.6%) more than in 2007, due mainly to 

overall growth in demand and lower intake from Indonesia. 

Exports to the East of Suez sub-region were higher by 312,527 tonnes (29.5%) compared to 1.06 million tonnes in 2007. 

Higher offtake was recorded in Jordan and Iran, where imports increased to 376,771 tonnes and 259,511 tonnes respectively.


38 middle east (cont’d) 

Table 10: Middle East – Import of Malaysian Palm Oil by Country (tonnes) 


East of Suez 

Armenia 40 - - - 

Azerbaijan - 38 38 - 

Bahrain 986 ,177 9 9.4 

Georgia 6,818 235 -6,583 -96.6 

Iran 231,071 259,511 28,440 2.3 

Iraq 677 9,89 9,214 2,838.1 

Jordan 6,014 376,771 370,757 6,164.9 

Kuwait 3,527 44,237 30,710 227.0 

Oman 96,359 92,942 -3,417 -3.5 

Qatar 08 ,102 994 920.4 

S Arabia 33,736 28,121 -5,615 -16.6 

Turkey 201,247 29,396 -71,851 -35.7 

UAE 360,509 356,395 -4,114 -1.1 

Yemen 09,316 63,119 -46,197 -42.3 

Sub-total ,060,408 ,372,935 312,527 29.5 

West of Suez 

Algeria 29,948 3,769 -16,179 -54.0 

Cyprus ,560 631 -929 -59.6 

Djibouti 80,98 04,121 23,140 28.6 

Egypt 84,588 347,558 62,970 88.3 

Eritrea 356 355 - 

Ethiopia 5,824 9,982 4,158 71.4 

Lebanon 4,606 3,347 -1,259 -27.3 

Libya 624 526 -98 -15.7 

Morocco 7,007 5,609 -1,398 -20.0 

Somalia 6,398 20,933 4,535 27.7 

Sudan 0,422 ,409 -9,013 -86.5 

Syria 33,090 4,981 -28,109 -84.9 

Tunisia 9,544 6,210 6,666 69.8 

Sub-total 384,593 529,432 44,839 37.7 

Israel ,302 ,043 -259 -19.9 

Total in Region 1,446,303 1,903,410 457,107 31.6 

Source: MPOB


middle east (cont’d) 

39 

In the West of Suez sub-region, Malaysia’s exports were higher by 144,839 tonnes (37.7%). In Egypt, Malaysian exports 

recovered to 347,558 tonnes from 184,588 tonnes the previous year. Egypt has become an important re-export market in 

cross-border trade with Sudan and Libya. As exports to Sudan have been affected by domestic financial and banking problems, 

some Sudanese importers have resorted to cross-border trade with Egypt to bring in palm oil. 

Djibouti’s imports of Malaysian palm oil grew by 28.6% for re-export to landlocked neighbours and countries in conflict such 

as Ethiopia, Eritrea and Somalia. The local presence of key producer Sime Darby Plantation Sdn Bhd encouraged intake. 


Women’s 3F Show, Dubai, UAE (Feb 2) 

About 500 women attended this unique exhibition on food, fitness and fashion. A series of lectures and a demonstration on 

healthy cooking were held alongside the exhibition, in addition to a lively question-and-answer session for knowledge exchange. 

MPOC provided information on the health and nutritional benefits of palm oil in everyday food products. 

Lecture Series on Malaysian Palm Oil at Cairo University, Egypt (Feb 11) 

This was initiated with the Malaysia Studies Department to provide exposure on palm oil to 60 undergraduates and postgraduate 

students from the Faculty of Economics and Business. The topics covered the techno-economics of palm oil, nutrition 

and applications of palm oil. 

Market Visit to Doha, Qatar (Feb 11-14) 

The visit was to obtain information on the development of the oils and fats market from the perspective of local industry 

players, especially in relation to patterns of demand for, and consumption of, palm oil. 

13 th Gulf Food, Hotel Equipment and Salon Culinary Exhibition, Dubai, UAE 

(Feb 24-27) 

MPOC Dubai has actively participated in this annual event to promote use of palm olein by major players in the food industry 

and salon culinary line, and technology innovators in food preparation. Over 2,000 companies from more than 70 countries 

showcased the latest in food and beverage products and services, as well as technology and developments in food preparation, 

processing and packaging. MPOC joined the Malaysia Pavilion under the MATRADE umbrella.


40 


5 th Alexandria Conference on Food Science and Technology, Egypt (March 4-6) 

The conference was organised by the Faculty of Agriculture of Alexandria University to update participants on developments, 

research and prospects of the Egyptian food industry. MPOC reviewed issues linked to the oil ration scheme in Egypt and 

provided the latest information on prices of palm oil in comparison to other vegetable oils. The event enabled networking with 

the scientific community. 

Cairo International Trade Fair, Egypt (March 14-28) 

MATRADE set up a Malaysia Pavilion for 11 exhibitors of food products. MPOC displayed palm oil products, shortening 

and specialty fats as ingredients in food processing. The opportunity was taken to identify new users among oils and fats 

manufacturers, importers and traders from the Middle East as a whole. The event was organised by the General Organisation for 

International Exhibitions and Fairs under the auspices of Egypt’s Ministry of Trade and Industry. 

OFI Middle East 2008, Abu Dhabi, UAE (April 15-16) 

This annual event takes place in several countries each year, with UAE being among the venues in 2008. The programme features 

technical and trade conferences alongside an exhibition. Most of the 34 exhibitors were from the Middle East. MPOC was able to 

demonstrate various applications of palm oil and establish contacts with oils and fats manufacturers, producers, importers and 

traders from the region. 

Technical Seminar with National Research Centre, 

Cairo, Egypt (April 22) 

MPOC co-organised the seminar on ‘Technical and Nutritional Aspects 

of Palm Oil’ to provide updates on trans-fats issues, food applications 

of palm oil and its nutritional properties. The 69 participants consisted of 

nutritionists, researchers, lecturers and managers. 

POTS Dubai, UAE (May 26-27) 

The trade fair and seminar by MPOC and MPOB was aimed 

at enhancing the palm oil trade. With the theme ‘Exceeding 

Expectations, Enriching Partnership’, the event included three seminar 

sessions and three plenary lectures featuring 10 speakers. The trade 

exhibition drew 14 exhibitors and seven sponsors from Malaysia and 

the Middle East.



41 

Exporters-Importers Dialogue in Djibouti (21 May) and Addis Ababa (May 27), Ethiopia 

In Djibouti, the event was intended to strengthen the palm oil business in the Horn of Africa countries – Djibouti, Ethiopia, 

Eritrea and Somalia. About 40 key importers attended the dialogue to discuss specific trade issues related to palm oil imports 

into Dijbouti and Ethiopia, and to secure business deals with Malaysian exporters of palm oil. MPOC presented a paper on 

‘Sustainable Malaysian Palm Oil’ to provide insight into current efforts to achieve sustainability. In Addis Ababa, the event 

attracted a selected group of vegetable oil importers and food Industry players. 

Health and Food Seminar, Cairo, Egypt (Nov 7) 

MPOC participated in this seminar for women, organised by Kol-Woshkor Food Magazine to educate participants on the health 

and nutritional benefits of palm oil. A paper entitled ‘Goodness of palm oil and quality frying and baking’ was delivered. 

Halal World Expo 2008, Abu Dhabi, UAE (Nov 11-14) 

This was the largest and most comprehensive exhibition for halal products and services in the Middle East. It gave the halal 

industry community an international platform to interact and to exchange ideas, as well as to forge business relations and secure 

business deals. MPOC participated for the second time, taking advantage of the increasing number of opportunities for the 

marketing of halal products in the global market. Emphasis was given to the uses and health advantages of palm oil as a halal 

ingredient for the food and non-food industries.


42 europe 


EU-27 imports of five major oils and fats reached 8.85 million tonnes, declining by 0.3% year-on-year. The region’s import 

demand is determined to a large extent by the prices of vegetable oils and crude mineral oil, as well as developments in the 

bio-fuel policy. High prices of vegetable oils during the year in review affected demand from the bio-fuel sector, except where 

supported by mandatory mixing regulations and mandates that had already been put in place. 

Table 11: Europe – Oils and Fats Imports (‘000 tonnes) 


PO 4,623 4,867 244 5.3 

SBO 96 ,036 75 7.8 

SFO ,354 ,178 -176 -13.0 

RSO 497 362 -135 -27.2 

Laurics ,44 ,410 -31 -2.2 

Total 5 Major Oils 8,876 8,853 -23 -0.3 

Source: Oil World 

Demand for palm oil escalated to 4.86 million tonnes or higher by 244,000 tonnes due to its competitive price relative to other 

vegetable oils. Soybean oil imports were up 75,000 tonnes, but sunflower oil imports went down to 1.17 million tonnes due to 

high prices. 

Table 12: Europe – Import of Malaysian Palm Oil (tonnes) 


EU-27 2,061,664 2,052,140 -9,524 -0.46 

Non-EU 354,452 616,297 261,845 73.87 

Total 2,416,116 2,668,437 252,321 10.44 

Source: MPOB


europe (cont’d) 

43 

Malaysian palm oil imports by the EU stood at about 2.05 million tonnes, reflecting a marginal decrease of 0.46%. Higher 

demand was recorded in non-EU countries, with exports to Russia and the Ukraine pegged at 125,026 tonnes and 483,955 

tonnes respectively. 

Table 13: Europe – Import of Malaysian Palm Oil by Selected Countries (tonnes) 


Netherlands ,460,554 ,297,888 -162,666 -11.1 

Sweden 43,963 5,045 -28,918 -20.1 

Germany 24,890 8,553 93,663 376.3 

Italy 20,660 53,681 33,021 27.4 

Denmark 27,936 26,318 -1,618 -1.3 

Spain 6,07 45,502 29,431 25.4 

UK 26,024 40,175 4,151 54.4 

Russia 82,578 25,026 -57,552 -31.5 

Ukraine 64,458 483,955 319,497 94.3 



Source: MPOB 

CPO continues to be the main product imported by the EU, accounting for nearly 53% of the total. But at 1.08 million tonnes, 

the volume was 98,180 tonnes less than in 2007. The Netherlands absorbed 1.01 million tonnes, but this was 12.34% lower 

than the 1.15 million tonnes recorded the previous year. 

Table 14: EU-27 – Import of Palm Oil by Product (tonnes) 


CPO/CPL/CPS ,183,746 ,085,566 -98,180 -8.29 

RBD Palm Oil 6,589 77,996 -38,593 -33.10 

RBD PS 211,791 256,599 44,808 21.16 

RBD PL 87,814 232,514 44,700 23.80 

PFAD/PAO 92,453 257,753 65,299 33.93 

Others 69,27 41,712 -27,559 -16.28 

Total 2,061,664 2,052,140 -9,524 -0.46 

Source: MPOB


44 



Market Visit to Poland (Feb 11-14) 

Following the accession of Poland into the EU, it was necessary to review developments in the oils and fats market. As such, 

the visit focused on prospects for palm oil and examined the impact of bio-fuel development on the oilseeds sector. 

Workshop on ‘Sustainability Criteria for Bio-fuels’, Brussels, Belgium (March 4) 

This was organised at the European Parliament under the chairmanship of MEP rapporteur Ms Dorette Corbey. The main purpose 

was to provide a platform for interested stakeholders to voice their opinions and suggestions on the sustainability criteria. 

The decision to include the sustainability criteria for bio-fuels in the revised Fuel Quality Directive was made by the Committee 

of Permanent Representatives in February. The relevant environmental agencies, NGOs and private consultants presented their 

views on greenhouse gas savings, land-use change, biodiversity and social issues. Several European Members of Parliament 

also attended the workshop. 

World Bio-fuels Congress, Brussels, Belgium (March 12-14) 

The conference looked at ways to ensure sustainability criteria for bio-fuel production and the implementation of certification 

schemes. Attention was also given to the potential adverse impact of the criteria on the environment. 

Dialogue with the German and Sweden Permanent Representation in the EU 

(March 17-18); & with the Slovenian Presidency and Dutch Permanent Representation 

(March 26-28), Brussels, Belgium 

MPOC Brussels held a series of meetings with members of the newly-created Ad-hoc Working Group. With sustainability 

criteria and greenhouse gas calculations for bio-fuels becoming politically sensitive, this body was specially set up by EU 

Member-States in February to elaborate on the criteria, for use in both the Renewable Energy and Fuel Quality Directives. 

Key messages on palm oil were delivered during the meetings with representatives of the Slovenian EU Presidency, as well 

as German, Dutch and Swedish Permanent Representations to the EU. 

Dialogue with the President of the Ad-hoc Working Group, Brussels, Belgium (April 17) 

The meeting with the Slovenian Presidency was coordinated by the Brazilian Embassy in Brussels. Representatives of Malaysia, 

Argentina, Indonesia, Mexico, South Africa, Malawi, Mozambique and Thailand attended the dialogue to express their views 

and concerns on development of the sustainability criteria.



45 

Group Meeting with European Commission Officials and Representatives of the 

Joint Research Council, Brussels, Belgium (May 6) 

The meeting provided the opportunity to discuss related issues with key officials responsible for the development of 

methodologies and gathering of data for greenhouse gas (GHG) savings from various feedstocks, as displayed in Annex VII of 

the draft Renewable Energies Directive. This technical issue is very important to countries like Malaysia because GHG emission 

reductions are generally one of the main comparative advantages of the bio-fuels produced. However, this advantage can be 

significantly diminished if inappropriate data or methodologies are employed. 

13 th International Peat Congress, Tullamore, Ireland (June 8-13) 

A special session at the congress was devoted to tropical peatlands. MPOC was effective in addressing concerns about the 

impact of oil palm cultivation in such areas. Contacts were made with peat soil scientists and various follow-up actions have 

since been initiated. 

Ministerial Mission to The Hague, Brussels and 

London (Sept 7-15) 

MPOC and the Malaysian Timber Council (MTC) co-organised this 

mission to address palm oil sustainability and timber issues in Europe. 

The mission on palm oil was aimed at reaffirming Malaysia’s high-level 

political commitment to sustainability and continued engagement in 

Europe. It also served as a reminder to European decision makers that 

Malaysia is closely monitoring the sustainability issues and that a lot 

is at stake for third-country producers. The timing was carefully chosen to coincide with full-blown political bargaining among 

EU Member-States, Parliamentarians and the European Commission over the EU’s renewable energy and bio-fuel proposals. 

The Malaysian delegates led by YB Datuk Peter Chin Fah Kui, the Minister of Plantation Industries and Commodities, consisted 

of Members of Parliament, captains of industry, Ministry officials, Malaysian Palm Oil Board, Malaysian Palm Oil Association, 

Malaysian Bio-diesel Board, Malaysian Timber Board, Malaysian Timber Certification Council, Sarawak Land Consolidation and 

Rehabilitation Authority, Forestry Department of Sarawak, MTC and MPOC. A journalist was invited to provide coverage. 

Meetings were held with key policy makers representing the 

Netherlands, European Parliament, EU Commission and UK Parliament. 

These allowed all parties to update each other and share their views on 

sustainability of palm oil, bio-fuels and food security. 

The mission concluded with a World Sustainable Palm Oil Conference, 

organised by the Asian Strategy and Leadership Institute, in London. 

YB Datuk Peter Chin Fah Kui and HE Dr Anton Apriyantono, Minister 

of Agriculture, Indonesia, presented the keynote addresses and jointly 

fielded questions from the floor. A roundtable discussion on sustainable 

palm oil was also held.


46 


Meeting with Palm Oil Stakeholders, Rotterdam, The Netherlands (Oct 22) 

The meeting was held in Nootdorp for representatives of Greenpeace, Unilever and other major stakeholders in the palm oil 

sector. It provided an update on the proposed moratorium on palm oil and on the outcome of the meeting hosted by Unilever in 

London on Oct 8. Participants suggested that that the current Principles and Criteria of the Roundtable on Sustainable Palm Oil 

be strengthened to tackle issues of deforestation, rather than introduce a new requirement as was suggested by Greenpeace. 

6 th International Bio-fuels Conference, Berlin, Germany (Dec 1-2) 

Current issues in the development of biogenic fuels in Germany and Europe were discussed together with future framework 

conditions for bio-fuels. Evidence was provided that bio-fuels are not in competition with food production, while measures were 

examined on achieving environmentally friendly and sustainable bio-fuel production. 

Dialogue Session with German Members of Parliament, Berlin (Dec 3) 

The dialogue with MP Dr Christel Happach-Kasan of the Free Democratic Party and MP Dr Joachim Pfeiffer of the Christian 

Democratic Union addressed issues arising from amendments to the draft legislation on promotion of bio-fuels, adopted by 

the German government on Oct 22. The Bill will go through the parliamentary ratification process and could come into force 

as early as February 2009. It focuses on a lower national bio-fuel quota of 5.25% for 2009 instead of 6.25%, as originally 

planned. More significantly, it stipulates that bio-fuels from palm oil and soybean oil will have to prove their compatibility 

with sustainability requirements in order to count towards the target and receive preferential tax treatment.


africa 

47 


Countries in this region added to their oils and fats intake by 9.5%, with a volume of 2.67 million tonnes compared to 2.44 

million tonnes in 2007. Palm oil contributed 1.88 million tonnes (up by 4.37%). Soybean oil imports were recorded at 765,000 

tonnes and tallow at 24,800 tonnes, both showing a drop in volume. 

Table 15: Africa – Oils and Fats Imports (‘000 tonnes) 


PO - Malaysia ,248.50 ,260.30 .8 0.9 

PO - Indonesia 1 484.6 530.1 45.5 9.4 

PO - Singapore 2 70.6 92.2 21.6 30.6 

SBO 2 614.7 765 50.3 24.5 

Tallow 3 22.7 24.8 2.1 9.3 

Total 2,441 2,672 231.3 9.5 


Note: 

1 Monthly data – Indonesia (Jan-Aug) 

2 Argentina (Jan-Dec 2008), Brazil ( Jan-Dec2008), US (Jan-Nov 2008), France (Jan-March 2008), Spain (Jan-June 2008) 

3 Monthly data – Australia (Jan-Nov 2008), US (Jan-Feb 2008) 

Malaysia’s palm oil exports stood at 1.26 million tonnes, higher by 11,847 tonnes (0.9%). Trade was conducted through a 

handful of countries which also serve as re-distribution hubs for neighbouring and landlocked countries. For example, South 

Africa is the main entry point for southern Africa, while Tanzania and Kenya serve East Africa, and Benin and Togo are the 

gateways to West Africa. 

Countries in West Africa increased imports from Malaysia, with the volume growing to 766,112 tonnes from 615,777 tonnes, 

or up by 150,335 tonnes (24.4%). This offset the declines recorded in southern and East Africa. South Africa’s imports of 

Malaysian palm oil dropped by 89,857 tonnes (36.4%) to 156,950 tonnes, as the country took advantage of competition in 

the trade.


48 

africa (cont’d) 

Table 16: Africa – Import of Malaysian Palm Oil by Country (tonnes) 


South Africa 246,807 56,950 -89,857 -36.4 

Togo 01,944 06,023 4,079 4.0 

Ghana 06,034 4,162 8,128 7.7 

Gambia 33,148 21,993 -11,155 -33.7 

Mauritania 53,855 64,994 ,139 20.7 

Tanzania 46,49 33,789 -12,702 -8.7 

Mozambique 38,358 56,088 7,730 46.2 

Benin 251,596 343,578 91,982 36.6 

Angola 37,508 36,516 -992 -2.6 

Kenya 95,254 54,332 -40,922 -43.0 

Senegal 9,000 8,950 -50 -0.6 

Nigeria ,099 4,335 3,236 ,204.4 

Congo 39,842 36,386 -3,456 -8.7 

Mauritius 0,789 8,923 -1,866 -17.3 



Source: MPOB 

Palm olein and cooking oil made up about 65% of the Malaysian palm oil imports. The volume of RBD palm oil rose sharply 

by 123,258 tonnes to stand at 127,047 tonnes, at the expense of cooking oil products. The higher volume was attributed to 

substitution with RBD palm oil because of the high price of cooking oil. 

Table 17: Africa – Import of Malaysian Palm Oil by Product (tonnes) 


CPO/CPL/CPS 67,992 56,943 -11,049 -6.58 

RBD PO 3,789 27,047 23,258 3253.05 

RBD PL 626,273 613,653 -12,620 -2.02 

RBD PS 75,735 42,563 -33,172 -43.80 

CO & DFPL/Super Olein 256,785 207,297 -49,488 -19.27 

PFAD 96,983 97,311 328 0.34 

Others 20,910 5,500 -5,410 -25.87 

Total 1,248,467 1,260,314 11,847 0.95 

Source: MPOB


africa (cont’d) 

49 


Red Palm Oil Muffin Project, Cape Town, South Africa 

In the first half of the year, MPOC coordinated the setting up of a bakery in Mitchelle’s Plain, Cape Town. In the last quarter, 

another bakery was set up in Natest Primary School. The ongoing programme contributes to increasing awareness of the 

nutritional benefits of red palm oil; overcoming Vitamin A and micronutrient deficiency among school children; and promoting 

wider use of red palm oil. 

The Sunday Times Food Show, Johannesburg, 

South Africa (July 3-6) 

MPOC Africa participated for the first time in the exhibition, which 

attracted visitors from other African countries such as Ghana, Liberia 

and Mozambique. Business meetings were also held with companies 

based in Johannesburg to discuss their participation in MPOC’s Palm Oil 

Trade Fair and Seminar, to be held in Ghana in 2010. 

Market Visit to Ghana, Togo and Benin (July 10-24) 

In addition to capturing the latest market information, MPOC continued its efforts to expand marketing opportunities for 

Malaysian palm oil in West Africa and to widen contacts with members of the oil and fats industry. The visit further enabled 

preparatory work for the Palm Oil Trade Fair and Seminar in Ghana next year. 

Meeting on Investing in Oil Palm Plantations, Lusaka, Zambia (Aug 5-8) 

The Zambia Investment Centre and Ministry of Commerce and Industry have extended an invitation to Malaysia to invest in the 

country. At the request of MATRADE and Office of the Deputy Prime Minister of Malaysia, MPOC participated in the meeting to 

explore opportunities for investment in oil palm plantations. MPOC also tapped into networking opportunities with oils and fats 

industry players. 

Visit to SIAL Exhibition Paris, France (Oct 19-23) 

A visit was made during the exhibition to establish contacts with major palm oil buyers and oils and fats industry members, 

particularly those from West Africa. They were from Nigeria, Togo, Benin, Ghana, Senegal, Mali, Niger, Cote d’Ivoire, Guinea, 

Gabon, Cameron and Liberia. MPOC promoted the Ghana leg of the Palm Oil Trade Fair and Seminar and provided information 

on the oil palm plantation investment.


50 americas 


The 3.84 million tonnes of oils and fats imported reflected an increase of 568,000 tonnes (17.4%) for the comparative period. 

Palm oil was the region’s dominant product at 1.32 million tonnes, higher by 229,000 tonnes or 21%. Soybean oil was next with 

1.11 million tonnes. 

Table 18: Americas – Oils and Fats Imports (‘000 tonnes) 


SBO 1 957 , 54 6.1 

SFO 2 66 34 -32 -48.5 

RSO 3 82 ,082 261 31.8 

PO 4 ,093 ,322 229 21.0 

PKO 4 336 292 -44 -13.1 

Total 5 Major Oils 3,273 3,841 568 17.4 

Source: Oil World 

Note: 

1 Refers to Mexico, Colombia, Peru & Venezuela 

2 Refers to Mexico only 

3 Refers to US, Canada & Mexico only 

4 Refers to US & Mexico only 

Overall, the region imported about 1.19 million tonnes of Malaysian palm oil, an improvement of 268,355 tonnes (29.1%) over 

the previous year. 

Table 19: Americas – Import of Malaysian Palm Oil (tonnes) 


US 794,920 ,047,668 252,748 31.8 

Latin America 93,986 ,784 7,798 8.9 

Canada 32,502 30,311 -2,191 -7.2 

Total in Region 921,408 1,189,763 268,355 29.1 

Source: MPOB 

The US was the region’s biggest importer of palm oil from all sources with 1.11 million tonnes, higher by 269,948 tonnes 

(31.92%). Malaysia remained the leading supplier to the US, commanding more than 90% of the market share. Compulsory 

labelling of trans-fatty acid content in food products has pulled palm oil back into the market as manufacturers and food-service 

providers seek out an alternative to partially hydrogenated oils. 

Table 20: US – Palm Oil Imports (tonnes) 


Malaysia 794,920 ,047,668 252,748 31.80 

Indonesia 1 50,700 67,900 7,200 33.93 

Total 845,620 1,115,568 269,948 31.92 


1 Jan-Aug only


americas (cont’d) 

51 

The main products imported by the US were RBD palm oil (343,047 tonnes), and RBD palm olein (329,528 tonnes), which 

constituted 64% of total imports of palm oil from Malaysia. Other popular products were RBD palm stearin and PFAD. 

Table 21: US – Import of Palm Oil By Product (tonnes) 


RBD PO 302,192 343,047 40,855 3.52 

RBD PL 205,508 329,528 24,020 60.35 

RBD PS 79,085 262,724 83,639 46.70 

PFAD 00,764 01,222 459 0.46 

Others 7,37 ,147 3,776 51.22 

Total 794,920 1,047,668 252,748 31.80 

Source: MPOB 


National Bio-diesel Conference & Expo 2008, Florida, US (Feb 3-6) 

Held in Orlando, the main objective of MPOC’s participation was to keep abreast of technical developments, policies and 

regulations, and market details on the bio-diesel industry in the US. MPOC highlighted the relevance of palm oil to the biofuel 

industry, which gained much attention. Companies like Green Earth Bio-fuels and Imperium Renewables were solid in 

their support for palm oil. The National Biodiesel Board expert panel drove home the point that additional feedstock will help 

ameliorate the ‘food versus fuel’ debate and that it is important for the industry to educate the media and consumers about the 

real reasons for higher food prices. 

USDA Outlook Forum 2008, Texas, US (Feb 21-22) 

The forum, held in Arlington, highlighted the changing oilseeds/oils dynamics, global issues, new products and the US 

economy, which may have an impact on the agricultural outlook for the year. 

International Restaurant Show, Nevada, US (Feb 24-27) 

The event, held in conjunction with the Chef Culinary Challenge, presented an opportunity to promote the use of palm oil by 

the restaurant sector, as well as the food and baking industries. More states in the US are coming under pressure to adopt 

regulations on declaring the content of trans-fatty acids in food products. This has created a niche for the marketing of 

trans-free palm oil.


52 


Working Visit to Oregon and Hawaii (March 1-14) & NIOP Annual Convention, Louisiana 

(March 9-12) 

The working visit led by the Secretary-General of the Ministry of Plantation Industries and Commodities was the focal point 

in removing discriminatory language on palm in the House Bill (HB) 2210. Expert testimony by members of the Malaysian 

delegation changed the views of state and city agency leaders in Oregon. Additionally, environmental groups that had previously 

opposed palm oil based on apocryphal ‘evidence’ have since dropped their opposition to Malaysian palm oil. Significant 

progress is now being made towards removing discriminatory laws against palm oil, through discussions with lawmakers. 

In Hawaii, the delegation met the Department of Business and Economic Development and Tourism DBEDT – a government arm 

that sets out policies towards renewable energy. They expressed support for the use of palm oil but emphasised the need for 

sustainable and certified production. They proposed energy solutions tied to sustainability concerns, and included provisions to 

certify use of palm oil that is declared to be sustainably produced. 

The delegation then participated in the NIOP conference. MPOC CEO Tan Sri Dr Yusof Basiron outlined developments in, and 

the market outlook for, palm oil. Also addressed were issues relating to the ‘food versus fuel’ debate, including productivity 

techniques, new technology and the need to develop food-based agriculture in developing countries. 

State Department Dialogue on Sustainable Palm Oil, Washington, US (May 2) 

The dialogue on ‘Palm Oil – Opportunities for Environmental Sustainability and Corporate Social Responsibility’ briefed 

participants on ways to achieve sustainable production of palm oil. They represented companies, conservation organisations, 

consumer product firms and academia, among others. Malaysia’s brief was on the palm oil industry and current developments, 

role of the Government, and solutions to environmental issues including the work of the Roundtable on Sustainable Palm Oil. 

NW Bio-diesel Forum, Washington, US (May 4) 

This was held in Seattle for more than 200 participants, mainly in the bio-diesel sector. MPOC presented a paper on ‘Sustainable 

Malaysian Palm Oil’, giving an insight into Malaysia’s moves to achieve sustainability in palm oil production, as well as its 

leading role in related research and development. MPOC participated in the mini expo held in conjunction with the forum. 

Visit to CARB and Energy Commission, California, US (May 12-13) 

A series of meetings was held with the California Energy Commission (CEC) and California Air Resources Board in Sacramento. 

Both state agencies are frontrunners in determining the use of renewable fuels including bio-diesel. The visit enabled the 

Malaysian palm oil industry to highlight its sustainable practices, and to express its concerns over the sweeping assertion that 

production of palm oil raises environmental and sustainability issues. 

California’s Low Carbon Fuel Standard (LCFS) was announced through Executive Order S-1-07 on Jan 18, 2007. The LCFS 

creates a state-wide goal of reducing the carbon intensity of transportation fuel by 10% by 2020. CEC is seeking to set 

sustainability standards and a roadmap to complement LCFS.



53 

Roundtable Discussion on Stearic Acid, Washington, US (May 16) 

The dialogue was convened with scientists in Seattle to discuss the move to label stearic acid for cholesterol metabolism. 

This is of special concern to palm oil. The discussion with a panel of independent experts on stearic acid was to share unbiased 

views on the neutrality of palm oil in cholesterol metabolism. The technical deliberations were attended by MPOC Deputy CEO 

Dr Kalyana Sundram, Dr KC Hayes, Dr Pramod Khosla, Rein Archer and Dr T Thiagarajan. 

International Oilseed Producers Dialogue (IOPD XI) (June 13-14) 

The IOPD aims to develop and promote a sound business environment that allows oilseed producers to obtain viable returns. 

Held in Berlin this time around, the dialogue was organised by the Union for the Promotion of Oil and Protein Plants of 

Germany. At the meeting, Malaysia’s initiatives to achieve sustainable standards were highlighted, together with information 

on the launch of the certification scheme by the Roundtable on Sustainable Palm Oil. 

Fispal 2008 Food Fair & MPOC Palm Oil Symposium, Sao Paulo, Brazil (June 23-26) 

This biggest food exposition in Latin America once again provided an opportunity to promote the use of palm oil in bio-diesel 

production. MPOC promoted several food products under its current educational theme, ‘Palm oil for global market food and 

fuel solutions’. 

The symposium in Menaus was co-organised with Braspalma and FELDA. The 80 participants discussed agronomy-related 

matters and potential to develop oil palm plantations in Brazil. MPOC Deputy CEO Dr Kalyana Sundram spoke on the nutritional 

properties of palm oil and environmental aspects of the oil palm industry. 

IFT Annual Meeting, California, US (June 28-July 2) 

The theme of IFT 2008 was ‘Driving Growth and Sustainability through Innovation’. MPOB and IOI Loders Croklaan took part in 

the exhibition to promote palm oil, while Hill & Knowlton collaborated with IOI in conducting a symposium on ‘New Paradigm 

for Saturated Fats’. Three reputable speakers addressed issues of dietary saturated fats as part of a healthy diet; public policy 

issues on dietary fats; and the role of the Food and Drugs Administration. Writer Gary Taubes spoke on good calories and bad 

calories. 

ADA Meeting & Expo 2008, Illinois, US (Oct 26-28) 

Held in Chicago, this event was targeted at dieticians. Information was delivered on the sustainability of palm oil production, 

with the key message that it is also trans-free and nutritious.


54 domestic promotions 

MPOC was involved in a varied range of programmes to promote the attributes of palm oil 

to specific target groups in Malaysia. This included participation in exhibitions, seminars 

and conferences organised by MPOC itself or in collaboration with other organisations. 

Red Palm Oil Feeding Programme, Miri (January) 

MPOC collaborated with the Ministry of Health on a community-based project known as the Red Palm Oil Feeding Programme. 

It is aimed at addressing energy and micronutrient malnutrition among Penan children in Sarawak. The current project is being 

implemented in several districts around Miri. It spans 12 months, during which the nutritional status of the children and 

their families is monitored. The programme, which began in 2007, is expected to be completed in 2009. 

Palm Oil Promotions Programme, Miri (Jan 26) 

MPOC once again collaborated with the Ladies Division of the Sarawak United People’s Party in a palm oil promotion 

programme for party-members and the public. The highlight was a cooking demonstration by celebrity chef Florence Tan. 

Participants were enlightened on the health properties of Vitamin E tocotrienols and beta-carotenes in palm oil. Tips on cooking 

and advantages of using palm oil were also shared with participants, several of whom said they have become more confident 

about using palm oil. 

MPOC-UMS Seminar on Palm Oil, Kota Kinabalu (Jan 18) 

MPOC co-organised a seminar with the School of Food Science and Nutrition of Universiti Malaysia Sabah (UMS). Based 

on the theme ‘Food applications and nutritional attributes of palm oil’, it was aimed at disseminating scientific information 

on food applications and nutritional attributes of palm oil to undergraduates. The seminar was particularly useful in that it 

helped educate future food technologists/scientists and nutritionists. 

Seminar on ‘Life Cycle Assessment (LCA) for Industry and Business Sustainability’, 

Subang Jaya (Jan 22) 

MPOC attended the one-day seminar, organised by SIRIM to educate the business sector on applying LCA toward industry and 

business sustainability. Close to 100 stakeholders from various sectors attended the seminar. A presentation by the Malaysian 

Palm Oil Association addressed the role of LCA in measuring the palm oil industry’s carbon balance. Support is also being 

provided to SIRIM in completing a LCA Project for the palm oil sector.


domestic promotions (cont’d) 

55 

Ekspo Komoditi 2008, Miri (Feb 22-29) 

MPOC participated in the event together with the Malaysian Palm Oil 

Board, under the purview of the Ministry of Plantation Industries and 

Commodities. This eight-day event was aimed at creating public awareness 

on the Ministry’s roles and activities. MPOC took part in the exhibition, 

and held cooking demonstrations as well as a ‘Biggest Oil Palm Fruit 

Bunch’ competition. 

MPOC explained its role and functions, and highlighted the 

value of palm oil in both food and non-food products. Celebrity 

chef Florence Tan led a cooking demonstration, which proved 

to be a major draw. She shared cooking tips and explained 

the benefits of palm oil in food applications. The contest to find 

the biggest oil palm fruit bunch attracted participation from 

major plantation companies and smallholders. Winners were awarded 

cash prizes and certificates. 

Palm Oil Price Outlook Conference & Exhibition, 

Kuala Lumpur (Feb 25-27) 

MPOC’s participation in the exhibition highlighted industry efforts to 

address sustainability issues and provided conference participants 

with information on palm oil and industry contacts. MPOC released 

its new corporate video, ‘Malaysia Palm Oil: The Golden Discovery’. The 

7-minute clip highlights the economic, social and environmental 

advantages of oil palm cultivation as well as nutritional benefits of palm 

oil. MPOC received many inquiries about the video and its latest 

directory on suppliers of palm oil products. 

The conference was launched by YBhg Datu Dr Michael Dosim Lunjew, Secretary-General of the Ministry of the Plantation 

Industries and Commodities. It attracted about 1,400 local and international participants. 

Medical Seminar on ‘Controversies and Myths on Fats/Oils Nutrition’, Kuala Lumpur (Feb 29) 

As part of its continuing education programme for medical practitioners, MPOC co-organised a seminar with the Malaysian 

Medical Association (MMA) chapters of Selangor and Kuala Lumpur. The lectures focused on dietary palm oil in relation to 

cardiovascular health, palm-based minor constituents and various food applications. The programme succeeded in updating 

the medical professionals on developments relating to oils and fats nutrition, particularly palm oil. It attracted 127 MMA 

members and other health professionals. This is a key target-group as medical and health professionals are regarded as 

shapers of opinion and agents of change in health matters.


56 


Programme Timbalan Perdana Menteri Bersama 

Perkebun Kecil dan Pekerja Ladang dalam 

Menjayakan Tanggungjawab Sosial dan Korporat, 

Shah Alam (March 6) 

MPOC participated in the exhibition held in conjunction with the launch 

of the Corporate Social Responsibility (CSR) programme for oil palm 

plantation companies. This event was organised by the MPOB to record 

appreciation to smallholders and plantation workers for their contributions to the palm oil industry, which had generated 

RM45.1 billion in revenue in 2007 and placed palm oil among the prime movers of the economy. 

MPOC’s participation was intended to educate smallholders and plantation workers on issues of sustainability in palm oil and 

its contributions to the environment. In addition to posters, the display included food and non-food products to show the 

versatility of palm oil applications. 

The highlight was the launch of the CSR Project by Deputy Prime Minister YAB 

Datuk Seri Najib Abdul Razak, and presentation of the Anugerah Ladang Prihatin 

and Anugerah Pekebun Kecil Cemerlang awards. 

International Symposium on ‘Peat Swamp Forests – Towards enhancement of knowledgebased 

decision making in the conservation and management of natural resources’, 

Kuala Lumpur (March 11-12) 

MPOC was invited to share its experiences derived from devising an Integrated Management Plan for Peat Swamp Forests 

(PSFs) in three demonstration sites in Pahang, Sabah and Sarawak respectively. The event was hosted by the Ministry of 

Natural Resources and Environment and officiated by its secretary-general. The symposium strived to enhance awareness on 

the role of PSFs which not only harbour rich biodiversity, but also store carbon in the form of biomass and peat soils. 

The discussions examined issues of carbon depth, peat depth and peat classification. Guidelines will be drawn up for state 

governments, based on presentations and feedback at the symposium. This is to ensure better conservation and sustainable 

use of PSFs.



57 

International Conference on Palm 

Oil Sustainability, Kota Kinabalu 

(April 13-15) 

Officiated by YB Datuk Peter Chin Fah 

Kui, the Minister of Plantation Industries 

and Commodities, this was the first 

sustainability conference organised by MPOC. It 

attracted 550 local and international participants 

and 23 organisations that displayed products and 

services at the parallel exhibition. Over the five 

sessions, 21 papers were presented. 

The opening ceremony covered three major 

undertakings by MPOC: 

i. Official Launch of the Malaysian Palm Oil Wildlife Conservation Fund (MPOWCF) 

ii. Signing of a MoU between MPOC, Borneo Conservation Trust and Bursa Malaysia 

iii. Launch of a video entitled ‘Malaysia Palm: Golden Oil from Green Agriculture’ 

The MoU was to fund a project to survey the orang utan population in 

Sabah. It was signed by: 

• YABhg Tun Mohamed Dzaiddin Haji Abdullah, Chairman of Bursa 

Malaysia 

• YBhg Tan Sri Datuk Richard Allen Lind, Chairman of Borneo 

Conservation Trust 

• YBhg Tan Sri Datuk Dr Yusof Basiron, CEO of MPOC 

An exhibition was also held to promote the industry’s efforts in 

sustainable production of palm oil and to showcase its main products. Solutions for sustainable production of vegetable oils, 

in particular palm oil, were also on display. MPOC highlighted messages on sustainability of Malaysian palm oil, while 

exhibiting several top brands of local and international palm products. 

MPOC responded to inquiries, such as the difference between red palm oil 

and palm olein; Tenera and its parental species and advantages of Tenera; 

how to increase fresh fruit bunches and oil yield; and the role of MPOWCF 

and application procedures for funding.


58 


Malaysia International Halal Showcase, Kuala 

Lumpur (May 7-11) 

This is the biggest specialised trade fair of its kind in the region. 

MPOC participated for the second consecutive year. The event, 

organised by MATRADE, was officiated by YAB Dato’ Seri Abdullah 

Ahmad Badawi, the Prime Minister of Malaysia. 

A survey was carried out to gauge visitors’ awareness of palm oil. 

Off the 640 respondents: 

• 85% know that palm oil is a vegetable oil 

• 93% believe that palm oil is cholesterol-free 

• 97% know that palm oil is rich in Vitamin E and red palm oil 

is rich in pro-Vitamin A 

• 95% believe that palm oil is good for health 

• 82% know that palm oil has a balanced composition of 

unsaturated and saturated fatty acids 

• 97% use palm oil in cooking 

The survey also gauged awareness of MPOC’s roles and activities. 

About 75% of the respondents said they had learnt about 

MPOC from various sources, in particular articles in Berita Sawit and 

the Jom Masak Bersama Seri Murni TV cooking programme.



59 

5 th Malaysian Conference & Exhibition on Antiaging 

and Aesthetic Medicine, Kuala Lumpur 

(May 17-19) 

MPOC sponsored a booth at this annual conference. Carotino Sdn Bhd 

and Hovid Bhd participated in the exhibition to promote their palm-based 

products. MPOC disseminated information on the nutritional attributes 

of palm oil, with special focus on minor constituents. 

48 th National Annual General Meeting & Scientific 

Meeting of the Malaysian Medical Association, 

Kuching (May 29-31) 

MPOC sponsored a lunch symposium for 80 doctors at this national 

annual meeting. Updates were provided on dietary fats, with special 

emphasis on trans-fatty acids. The event proved to be an excellent 

platform to enable better understanding of dietary palm oil as a healthy 

alternative to products containing trans-fatty acids. 

International Workshop on ‘Conservation of the Bornean Elephant in Sabah’, 

Kota Kinabalu (May 21-23) 

MPOC was invited to attend the workshop which was organised by the Sabah Wildlife Department, with the assistance of WWF 

Malaysia, Cardiff University, Universiti Malaysia Sabah and the NGO known as HUTAN. Among the 100 participants were 

officials of government agencies, academicians, environmentalists, affected communities and industry players including palm 

oil plantation companies. The objective was to generate a State Action and Management Plan to conserve the pygmy elephant 

population in the state. The workshop identified four Managed Elephant Ranges to be set up in Sabah to provide pygmy 

elephants with better protection. It also proposed that stakeholders, including from the oil palm industry, should work closely 

to conserve the species. 

REACH Meeting with MIDA, Kuala Lumpur (June 19) 

The meeting discussed such topics as the REACH Regulations, pre-registration and registration requirements, Material Safety 

Data Sheet, Chemical Safety Report and Chemical Safety Assessment.


60 


9 th Malaysia International Food and Beverage 

Trade Fair, Kuala Lumpur (July 10-12) 

This was organised concurrently with the 4 th International Agro-Bio 

Business Conference. Officiated by YB Dato’ Mustapa Mohamed, Minister 

of Agriculture & Agro-Based Industry, the event was one of the major 

trade fairs on the domestic calendar. 

MMVitaoils Sdn Bhd joined MPOC at its exhibition booth to respond 

to inquiries on price and palm-based product specifications. Cooking 

demonstrations received positive response from visitors. Inquiries were received on the palm products displayed – especially 

red palm oil and double fractionated olein – as well as on local distributors and manufacturers. 

3 rd International Conference on Animal Nutrition, Bangi (July 29-31) 

This discussed domestic feed production and substitution, feed safety, feeding strategies, new feed processing technologies 

and enzymes supplementation. The importance of energy, protein, and mineral supplementation was also highlighted. 

Malaysia Agriculture, Horticulture and Agrotourism Show, Serdang (Aug 11-23) 

The biennial event promotes diversification in agriculture and related business opportunities. It drew about 1.2 million 

visitors. 

MPOC participated under the Ministry of Plantation Industries and Commodities’ pavilion to promote palm oil and to provide 

links to industry players. Three cooking demonstrations showed how a variety of dishes can be prepared with palm oil and red 

palm oil. The chefs talked about the goodness of palm oil and its benefits in food. 

More than 5,000 visitors visited MPOC’s booth over the 13 days. Inquiries were received about palm bio-diesel, agronomy of 

oil palm, uses of empty fruit bunches, nutritional facts about palm oil, uses of oil palm waste, and comparison of the attributes 

of palm olein and olive oil. 

International Symposium & Workshop on Tropical Peatland, Kuching (Aug 19-22) 

Organised by Universiti Malaysia Sarawak, MARDI, Carbopeat and the International Peat Society, the symposium gave MPOC 

a speaking slot and an opportunity to correct misconceptions on planting oil palm on peat soil.



61 

2 nd International Palm Oil Trade Fair & Seminar 2008 (POTS 2008), Kuala Lumpur 

(Aug 24-26) 

The event, themed ‘Changing Marketing Landscape – Challenges for Business Sustainability’ was timely, given that the 

global market was then facing high prices of crude oil and essential food commodities. 

Officiated by YB Datuk Peter Chin Fah Kui, the Minister of Plantation Industries and Commodities, the event allowed the 

oils and fats industry to obtain updates on key market trends and to discuss global issues. The tally of 535 participants was 

60% more than at the inaugural event in 2006. 

They included conference delegates, exhibitors, 

sponsors, invited guests, government officials 

and media representatives. 

The trade exhibition integrated with the seminar provided a good opportunity for Malaysian companies to showcase their 

products and services, and to interact with those seeking business ventures. Fifteen companies participated, occupying 28 

booths. MPOC’s booth was a one-stop information centre for posters, products and videos on palm oil. 

Most exhibitors said they had generated contacts for business opportunities and that the exhibition had created publicity 

for their products and services. One company even concluded a supply contract. Seventy-one business meetings were 

arranged for buyers and Malaysian suppliers. 

POTS 2008 was also used as a platform to sign a Memorandum of 

Understanding between Sime Darby Plantation Sdn Bhd and the State 

Trading Corporation of India Ltd, witnessed by YB Datuk Peter Chin Fah 

Kui and HE Ashok K Kanthan, High Commissioner of India to Malaysia. 

This MoU was to establish a joint venture in palm oil-related businesses 

in India. The signing of the document signified the start of feasibility 

studies in India by Sime Darby Plantation to determine a plan of action 

to take the proposal to the next level. This collaboration was an outcome 

of business networking at POTS Mumbai in May.


62 domestic promotions (cont’d) 

Palm Oil Leadership Award (PILA) 

Dinner, Kuala Lumpur (Oct 13) 

The first Palm Oil Leadership Dinner was 

organised in 2007 to present the Council’s fiveyear 

roadmap to industry leaders and to unveil the 

corporate face of MPOC. In 2008, the inaugural 

PILA was presented. 

The award was created to honour an individual 

whose leadership has contributed to the well 

being of the Malaysian palm oil industry through 

innovation, policy design and entrepreneurial 

skills; or for corporate leadership that has resulted in significant benefits to the palm oil industry in the past or present. 

The award comprises a trophy, certificate and RM30,000 in cash. 

The judges comprised the heads of MPOB, FELDA, Bursa Malaysia and MPOC. They unanimously selected former Primary 

Industries Minister YABhg Tun Dr Lim Keng Yaik as the first recipient. 

Seats at the dinner were offered to plantation companies for sponsorship 

so that they could fulfil their Corporate Social Responsibility. 

Six companies sponsored 28 seats and all proceeds were channelled 

to the Malaysian Palm Oil Wildlife Conservation Fund.



63 

OFIC 2008, Kuala Lumpur (Oct 21-23) 

MPOC was one of the primary organisers of the annual conference. Five 

papers related to palm oil were presented by MPOC-sponsored speakers, 

during the food and nutrition module. The topics included metabolic 

syndrome, palm-based animal feed, updates on trans-fatty acids, fat 

substitutes and functional ingredients. The 300 participants were from 

the Asian region. 

Workshop on ‘Findings on status of peatland in Malaysia: Its relation to CO2 emissions 

and climate change’, Petaling Jaya (Nov 4-5) 

MPOC was among experts and stakeholders at the workshop organised by Wetlands International to share its draft findings 

and to seek input on the findings and recommendations on the status of peatland in Malaysia. Among the 30 experts were 

representatives of Wetlands International (Malaysia), Forest Research Institute of Malaysia, MARDI, Forestry Department of 

Peninsular Malaysia, Forestry Department of Sabah, WWF Malaysia, Universiti Malaya, Universiti Malaysia Sarawak, MPOB, 

RSPO, MPOC and MPOA. The workshop highlighted the need to continue raising awareness of the importance of conserving 

the remaining half a million hectares of undisturbed peatland in Malaysia. 

Joint Research Centre (JRC) of the European Commission-Malaysian Palm Oil Industry 

Expert Consultation on ‘Direct and indirect impact of bio-fuel policies on tropical 

deforestation in Malaysia’, Kuala Lumpur (Nov 20-22) 

This expert consultation, jointly organised by MPOC and JRC of the European Commission, was a follow-up to the Symposium 

on Sustainable Resource Development organised in Brussels on June 6, 2007 by MPOC. The objective was to discuss data 

availability and accuracy and to clarify uncertainty in order to provide the best technical support to Malaysian or European 

decision makers in the fields of bio-fuels and bio-energy. 

Nine JRC delegates and 16 delegates representing the Malaysian palm oil industry attended the meeting. Their discussions 

covered: 

i. Deforestation and forest monitoring – to improve understanding of the direct and indirect impact of bio-fuel policies 

(national, European and global) on deforestation 

ii. 

Life Cycle Assessment (LCA) and greenhouse gas (GHG) emissions – to discuss current knowledge of GHG emissions 

related to oil palm cultivation, effect of land-use change, and LCA of oilseeds and palm oil 

iii. 

Sustainability certification and wildlife conservation – to discuss the status of certification initiatives


64 


On Nov 22, a field visit was arranged for the JRC delegation to an oil palm plantation, palm oil mill and associated facilities 

at the Sime Darby Plantation Academy in Carey Island, Banting. The experts were shown general aspects of oil palm harvesting 

and good agricultural practices. Explanations were also given on how CPO and kernel oil are obtained. 

The expert consultation will lead to more discussions and the formation of working groups involving the two parties. JRC 

indicated that it would continue to work with MPOC to further mutual aims through an appraisal of available scientific data, oil 

palm cultivation, palm oil production and bio-fuels. 

International Conference on the Environment, Penang (Dec 15-17) 

MPOC co-sponsored the conference, organised by the School of Chemical Engineering of Universiti Sains Malaysia, and 

presented a plenary lecture entitled ‘The Malaysian Palm Oil Industry as a Role-model for Sustainable Development in Agriculture’. 

The biennial conference attempts to facilitate interdisciplinary discussion on appropriate issues and innovative technologies 

in areas related to the environment, in particular for the developing world.


media promotions 

65 

The print, digital and electronic media remain the most effective communication tools in 

the dissemination of information on palm oil. These are also the main channels to publicise 

MPOC activities and events, respond to allegations against palm oil, and highlight the 

sustainability of Malaysian palm oil. 

A total of 52 news items were published during the year in Malaysian and international newspapers. These included MPOC’s 

responses to misleading information, with a mirror copy being uploaded to its two websites. Interviews with the CEO were 

published in international reports on Malaysia by such publications as Forbes Asia, Reader’s Digest, Al-Khaleej and Indian 

Express. 

TV Programme: Selera Ramadhan MMVitaOils, 

RTM1 (Sept 1-30) 

MPOC and MMVitaoils Sdn Bhd co-sponsored a cooking programme, 

Selera Ramadhan MMVitaoils on RTM1 throughout the Muslim fasting 

month. The programme promoted the versatility of palm oil in food 

preparations and built public awareness of MPOC’s role in the industry. 

The programme was conceptualised as a cooking show hosted by a chef with a new guest appearing in each episode. 

The chef prepared three recipes and this was followed by a discussion with the guest on topics related to Ramadhan and Islam. 

The programme was aired daily from Sept 1-30 at 5am, with a repeat at 12.30pm the same day. The average viewer-ship 

recorded was 161,367 per episode.


66 media promotions (cont’d) 

MPOC VIDEOS 

Malaysia Palm Oil – The Golden Discovery 

This video was released during Bursa Malaysia’s Palm and Lauric Oils Conference. 

The 7-minute clip highlights the economic, social and environmental advantages of 

oil palm cultivation as well as nutritional benefits of palm oil. Copies of the video 

were sent to relevant Malaysian embassies abroad and foreign missions in Malaysia 

to provide insight into the palm oil industry. This video was also uploaded on 

MPOC’s corporate website to enable wider access. 

Malaysia Palm – Golden Oil from Green Agriculture 

This 5-minute video, launched during the International Palm Oil Sustainability 

Conference, highlights key areas in the sustainability of Malaysian palm oil. 

These cover Good Management Practices, Corporate Social Responsibility, Land-use 

Efficiency and the positive role of palm oil in the carbon cycle. The footage reinforces 

assertions that oil palm is grown on legal agricultural land and that sustainable 

agricultural and management practices are practised in Malaysia.


publications & posters 

67 

Global Oils & Fats Business Magazine 

Four issues of the quarterly magazine were published and circulated worldwide. Readers were updated on trade issues, safe and 

sustainable agriculture, the environment, bio-fuels, health and nutrition, and market updates and analyses. Also featured were 

interviews with well known personalities in the oils and fats industries. A supplementary pull-out section was published with 

each issue. All editions of the magazine were uploaded on MPOC’s websites 

Malaysian Palm Oil FORTUNE 

This monthly magazine highlights the progress of markets and the current developments in different regions. It generates 

market information and communicates with groups in the Malaysian palm oil industry to promote the work of MPOC. 

Twelve issues were produced via print and electronic mail. A mirror-copy of each was uploaded on MPOC’s corporate website.


68 

publications & posters (cont’d) 

Malaysian Palm Oil Directory 2008/09 

The 6 th edition of the Palm Oil Directory was updated with a 

comprehensive listing of palm oil exporters, millers, refiners, 

oleochemical and specialty fats manufacturers and kernel 

crushers. A new section, under logistics, was developed to 

list the contact details of brokers, shippers, insurers and 

surveyors. The biennial directory provides the latest trade 

information and is a useful resource for networking within 

the industry. It is also produced in digital format for easy 

reference. 

Posters 

Old posters were given a new look and four new posters 

were developed for exhibitions in which MPOC 

participated or events that it organised.


publications & posters (cont’d) 

69 

The posters were to supplement information on such topics 

as nutritional attributes of palm oil, the environment, 

sustainable practices in the palm oil industry in Malaysia, 

and activities of MPOC.


70 websites 

The Internet has helped MPOC to widen awareness of the positives of palm oil and to quickly rebut allegations. This is an 

effective and cost-efficient strategy in reaching users worldwide. 

MPOC’s corporate website, www.mpoc.org.my, carries up-to-date information on developments in the palm oil industry. It is 

also used as a platform to communicate MPOC’s views and comments on current issues pertaining to the Malaysian palm oil 

industry. 

A secondary website, www.malaysiapalmoil.org, initially developed in 2007 as an extension to the electronic media campaign 

in Europe, is updated with news about the Malaysian palm oil industry. This website is targeted at a European audience in 

communicating sustainability issues and progress being made by the Roundtable on Sustainable Palm Oil. 

Other websites, developed by the MPOC regional offices, are updated with issues on palm oil that are specific to each region, 

for the benefit of local users.


palm oil product showcase 

71 

MPOC has set up a palm oil product showcase, located adjacent 

to the main entrance of its headquarters in Kelana Jaya. 

It displays palm-based food and non-food products that command 

the highest market share in the different regions covered 

by MPOC. 

These are categorised by region and arranged according to popularity. General 

information on product categories and specific information on Smart Balance 

and Trans Fats are placed alongside the products. A touch-screen information 

kiosk has been installed to provide detailed information on the products and 

background information on the domestic palm oil industry. Many requests have 

been received from palm oil producers to showcase their products as well.


72 

Malaysian Palm Oil Wildlife 

Conservation Fund (MPOWCF) 

The year saw the achievement of two milestones by the MPOC: 

• Official launch of the Malaysian Palm Oil Wildlife Conservation Fund 

• Signing of a Memorandum of Understanding with the Borneo Conservation Trust and Bursa Malaysia for an 

‘Orang Utan Survey’ 

Both events were held during MPOC’s inaugural International Palm Oil Sustainability Conference from April 13-15 in 

Kota Kinabalu, Sabah. 

The ‘Orang Utan Survey’ was initiated with the objective of assessing the status of the orang utan population in Sabah. 

The Borneo Conservation Trust and the NGO known as HUTAN undertook the project with the assistance of the Sabah 

Wildlife Department. 

The survey assessed trends in the distribution and density of the orang utan population, and threats to their conservation. 

Key habitats and corridors outside the protected areas were identified and mapped. 

On completion of the survey, a follow-up project will be carried out with the aim of rehabilitating the fragmented habitats. 

This will be done in partnership with the Malaysian palm oil industry. 

Ongoing sponsorship under the Fund includes: 

- Orang Utan Island projects 

Funds have been provided to operate the Orang Utan Island infant-care 

unit in Bukit Merah Laketown Resort, Perak, and to run an education 

programme for schools. 

- Jungle Patrol Unit 

Carried out in collaboration with the Sabah Forestry Department, the unit was established by the Fund in 2007 to 

secure and safeguard wildlife and their habitats in the Tangkulap-Pinangah Forest Reserve in Sabah. The patrols 

also aim to deter poaching. 

- Tabin Wildlife Reserve 

Financial assistance has gone towards producing educational materials 

on wildlife conservation that highlight Tabin’s rich biodiversity. A book 

entitled ‘Tabin – Sabah’s greatest wildlife sanctuary’ was published during 

the year by the Tabin Wildlife Resort.


branding of Malaysian palm oil 

73 

MPOC embarked on an exercise to brand Malaysian palm oil in 2008. 

The brand, symbolised by a new name – MALAYSIAPALM – and a logo, marks 

the start of a dynamic chapter in the expansion of the domestic industry. 

The brand represents the certified status and assured standard of Malaysian 

palm oil and its products. It validates registered producers and manufacturers, 

as well as products that satisfy the criteria set by the Malaysian Palm Oil 

Board (MPOB) and Malaysian Palm Oil Council (MPOC). 

The brand further attests to Malaysia’s support for the concept and principles 

of sustainability in producing palm oil, and commitment to preserving the environment through optimum use of land that 

is legally designated for agriculture. 

Concurrently, the branding exercise spearheads the drive for ‘Membership Accreditation’ to garner full participation from all 

involved in the sector. Their support for the ideals and certification criteria will have a direct impact on their standing in the 

market place, as well as on consumer confidence in Malaysian palm oil products. 

MALAYSIAPALM Scheme 

The concepts and working model of the MALAYSIAPALM SCHEME were crystallised during the year. This is a voluntary 

scheme for oil palm growers; palm oil millers, refiners and traders; and palm bio-diesel producers. The Scheme provides an 

opportunity for those admitted to assure clients that their palm oil is obtained from oil palm cultivated on legal agricultural 

land and through the application of good agricultural and management practices. It indicates that oil palm is as responsibly 

cultivated in Malaysia as oilseeds grown in other countries. 

The Scheme entails the issuance of a Certificate of Assurance (COA) when MPOB certifies that the palm oil raw material is 

obtained from companies that it has registered and licensed, and therefore regulates. Applicants who receive the COA will 

be awarded the Certificate of Brand Adoption by MPOC, which allows them to use the MALAYSIAPALM brand in advertising 

materials, corporate signs, brochures, websites and packaging. 

MPOC will promote the brand and regulate the use of the logo. A presentation on the branding exercise was made to members 

of the Malaysian Bio-diesel Association on Aug 7 at Wisma Sawit in Petaling Jaya. In response to the interest shown, similar 

briefings will be held for others in the bio-diesel supply chain.


74 public relations activities 

Public relations activities are among MPOC’s core functions, aimed at promoting and protecting the interests of Malaysian 

palm oil in the global oils and fats market. The ongoing debate on palm oil sustainability and the introduction of sustainable 

criteria for EU bio-fuels require MPOC to develop new strategies to counter misinformation. 

Sustainability has become a major issue in Europe, with countries like Germany, the UK, and the Netherlands leading the 

rest in formulating sustainability and certification criteria for bio-fuels. During the year, more countries began debating and 

formulating such criteria. This necessitated monitoring of developments in the EU and implementation of effective responses 

that target the right groups, especially in the EU Parliament and EU Commission. 

A public relations firm based in Brussels was therefore engaged to assist MPOC. It has kept MPOC up to date on pertinent 

issues relating to sustainability, palm oil, bio-fuels and carbon balance, as discussed or debated in the EU Parliament. 

The agency has also proposed follow-up actions. 

FAMILIARISATION PROGRAMMES 

European Parliamentarians 

Members of the EU Parliament (MEPs), 

Kuala Lumpur (Jan 22-25) 

A group of MEPs visited Malaysia to learn 

more about sustainable practices in oil palm 

cultivation and to hold dialogues with captains 

of industry on issues of sustainability and food 

security. Their presence helped consolidate 

support for Malaysian palm oil, neutralise 

negative conceptions about Malaysian palm 

oil, and strengthen the industry’s credentials in 

Europe. At the same time, the dialogues served to 

raise awareness within the Malaysian Government 

and related agencies about Europe’s concerns 

and the potential threats to the brands ‘Malaysia’ 

and ‘palm oil.’


public relations activities (cont’d) 

75 

The MEPs met YABhg Tun Musa Hitam, the 

Chairman of Sime Darby Group, to exchange 

views and learn about the socio-economic 

contributions of palm oil to the country, and 

paid a courtesy call on YB Datuk Peter Chin 

Fah Kui, the Minister of Primary Industries 

and Commodities. 

The highlight of the visit was a roundtable 

discussion with industry members and 

representatives of the Malaysian Timber 

Council, Forest Research Institute of 

Malaysia, WWF Malaysia, Malaysian Bio-diesel Association and the Secretariat of the Roundtable on Sustainable Palm Oil. 

The EU’s concerns on the environment were raised, while the Malaysian delegates were briefed on the most recent 

developments in the sustainability debate in the European Parliament. The discussion also enabled Malaysia to explain 

environmental and social issues linked to deforestation, illegal logging, biodiversity, development of peatland, rights of 

indigenous peoples, certification and availability of sustainable palm oil, food verus non-food requirements for palm oil, and 

conservation of the orang utan. 

Seeing the positive outcome of the programme, the MEP delegation 

suggested that more direct discussions be arranged with industry 

members in future, possibly in the EU Parliament. They expressed 

confidence that Malaysia would be able to produce palm oil sustainably 

and that palm oil would provide the ideal solution in meeting global needs 

in food safety, clean energy (bio-fuels), and poverty alleviation.


76 public relations activities 

Members of Romanian Parliament, Kelana 

Jaya (June 10) 

Seven Romanian MEPs visited MPOC as part of 

their programme with the Parliament of Malaysia. 

MPOC took the opportunity to brief them on the 

domestic palm oil industry and the challenges it 

faces. They were briefed on the global oils and 

fats scenario; RSPO and sustainable palm oil; 

oil palm and deforestation; and the advantages of 

palm oil and its applications vis-à-vis other oils. 

The session allowed both parties to learn and understand each other’s concerns on sustainability, trade and use of palm oil. 

The visit proved to be an eye-opener for the Romanian MEPs. The Deputy Head of Mission for the MEPs, the Hon. Viorel Mosanu, 

acknowledged the industry’s efforts to produce palm oil responsibly and sustainably. He said that Romania looks forward 

to working closely with Malaysia.



77 

Member of UK Parliament, Kuala Lumpur (Aug 10-17) 

MPOC hosted a visit by the Hon. Bill Cash, who is also the Chairman of the Malaysia All-Party Parliamentary Group. 

The programme included a visit to an oil palm plantation as well as separate meetings with YB Datuk Peter Chin Fah Kui; 

representatives of the Malaysian Timber Council; Asian Strategy and Leadership Institute; and senior officials of MPOC. 

Mr Cash was briefed on sustainable practices in Malaysian plantations and on sustainability issues related to the palm oil and 

timber sectors. He told the industry about the sustainability debate in the UK Parliament and its concerns about food security. 

Mr Cash acknowledged the positive efforts by the Malaysian palm oil industry and lauded its commitment to producing palm oil 

sustainably. 

Media 

Program for Journalists in Conjunction with IPOSC, Sandakan (April 12-13) 

A Palm Oil Education Programme for selected journalists was organised in conjunction with the International Palm Oil 

Sustainability Conference. The objective was to educate them on Good Agricultural Practices (GAPs) in Malaysian oil palm 

cultivation and on the efforts by the Sabah Wildlife Department in protecting the orang utan. Emphasis was also given to forestry 

matters and corporate social responsibility (CSR) of IJM Bhd, the plantation company that hosted the visit. 

Throughout the programme, the participants showed a deep interest in learning about oil palm, GAPs and the industry. They were 

also told about regulations and measures to minimise the impact of cultivation on the environment, biodiversity and wildlife. 

The journalists were especially impressed with IJM’s commitment to sustainable production of palm oil, conservation of the 

environment and forests, and to the social development of young graduates and workers. 

The visit to the Orang Utan Rehabilitation Centre in Sepilok enabled the participants to learn about issues affecting the species 

and the conservation measures in place. Dr Sen Nathan, Chief Field Veterinarian of the Sabah Wildlife Department, explained 

the efforts of his department and the Sabah government in rehabilitating orang utan before releasing them back into the forests. 

Also highlighted were the palm oil industry’s contributions in ensuring the survival of the orang utan. The programme was a 

success, going by the knowledge acquired by the participants.


78 


Prgramme for UK Journalist, Kuala Lumpur (June 9-13) 

MPOC hosted Mr Michael Hanlon, Science Editor of Daily Mail for a familiarisation programme on palm oil. Among the topics 

highlighted were biodiversity conservation of the orang utan and forests. Meetings were arranged with officials from the RSPO, 

WWF Malaysia, Ministry of Natural Resources and the Environment, Sabah Forestry Department and MPOC. 

He was briefed on sustainable practices on oil palm plantations and industry efforts in meeting the RSPO’s criteria. Another 

session featured the Sabah government’s efforts to protect the orang utan and their habitat, and conservation of forests. A trip 

to Danum Valley Field Centre in Sabah enabled Mr Hanlon to experience the richness of Malaysia’s biodiversity as well as speak 

to Dr Glenn Renolds, Chief Scientist of the Royal Society, who was very positive about ongoing forestry conservation measures 

and in recognising the oil palm industry’s contributions in elevating the living standards of people living in rural areas.


79 

calendar of events



80 

calendar of events 2008 

January 

January 

Red Palm Oil Feeding Programme; Miri, Sarawak 

18 MPOC-UMS Seminar on Palm Oil; Kota Kinabalu, Sabah 

22 Seminar on ‘Life Cycle Assessment for Industry and Business Sustainability’; Subang Jaya, Selangor 

22-25 Familiarisation Programme for Members of EU Parliament; Kuala Lumpur 

24-26 Symposium on Palm Oil in Conjunction with the 16 th National Convention of Council of 

Hotel and Restaurant Educators of The Philippines; Manila 

26 Palm Oil Promotions Programme; Miri, Sarawak 

30-Feb 1 

Panacea Exhibition; Mumbai, India 

February 

February Market Research on Product Ingredients; Lahore & Karachi, Pakistan 

2 Women’s 3F Show; Dubai, UAE 

3-6 National Bio-diesel Conference & Expo 2008; Florida, US 

11 Lecture on Malaysian Palm Oil at University of Cairo; Egypt 

11-14 Market Visit to Doha; Qatar 

11-14 Market Visit to Poland 

19 Product Launch at Zylka Propolis; Ghent, Belgium 

21-22 USDA Outlook Forum 2008; Texas, US 

22-29 Ekspo Komoditi 2008; Miri, Sarawak 

24-27 13 th Gulf Food, Hotel Equipment Exhibition and Salon Culinary Exhibition; Dubai, UAE 

24-27 International Restaurant Show in Las Vegas; Nevada, US 

25-27 Palm Oil Price Outlook Conference & Exhibition; Kuala Lumpur 

28 Palm Oil Seminar at Cairo University; Egypt 

29 Medical Seminar on ‘Controversies and Myths on Fats/Oils Nutrition’; Kuala Lumpur 

29 Meeting at the Brazilian Embassy in Brussels; Belgium



calendar of events 2008 (cont’d) 

81 

March 

1-14 Working Visit to Oregon and Hawaii; US 

4 Workshop on ‘Sustainability Criteria for Bio-fuels’; Brussels, Belgium 

4-6 The 5 th Alexandria Conference for Food Science & Technology; Egypt 

6 Program Timbalan Perdana Menteri Bersama Perkebun Kecil dan Pekerja 

Ladang dalam MenjayakanTanggungjawab Sosial dan Korporat; 

Shah Alam, Selangor 

9-12 NIOP Annual Convention; Florida, US 

11-12 International Symposium on ‘Peat Swamp Forests – Towards enhancement of 

knowledge-based decision making in the conservation and 

management of natural resources’; Kuala Lumpur 

12-14 World Bio-fuels Congress; Brussels, Belgium 

14-16 NPEW 2008; California, US 

14-28 Cairo International Trade Fair; Egypt 

17-18 Dialogue with the German and Sweden Permanent Representation 

in the EU; Brussels, Belgium 

17-19 Personal Care and Home-care Ingredients Exhibition; Shanghai, China 

20-22 Showcase Malaysia 2008; Dhaka, Bangladesh 

26-28 Food Ingredients China; Shanghai 

26-28 Dialogue with the Slovenian Presidency and Dutch Permanent Representation in the EU; 

Brussels, Belgium



82 


April 

3-5 Nutrition and Health Exhibition; Beijing, China 

7-8 1 st Joint Commission Meeting between Malaysia and Egypt; Cairo 

12-13 Programme for Journalists in Conjunction with IPOSC; Sandakan, Sabah 

12-18 Palm Oil Familiarisation Programme for Chinese Officials; 

Kota Kinabalu, Sabah 

13-15 International Conference on Palm Oil Sustainability; Kota Kinabalu, Sabah 

15-16 OFI Middle East 2008; Abu Dhabi, UAE 

17 Dialogue with the President of the Ad-hoc Working Group; Brussels, Belgium 

22 Technical Seminar with National Research Centre; Cairo, Egypt 

22-25 Food and Hotel Asia Exhibition; Singapore 

25 National Cardiac Conference; Dhaka, Bangladesh 

28- 2 May CODEX Committee Meeting on Food Labelling; Ottawa, Canada



calendar of events 2008 (cont’d) 83 

May 

2 MPOC-Ngee Ann Polytechnic Seminar on Palm Oil; Singapore 

2 State Department Dialogue on ‘Sustainable Palm Oil’; Washington DC, US 

4 NW Bio-diesel Forum; Washington, US 

6 Group Meeting with European Commission Officials and Representatives 

of the Joint Research Council; Brussels, Belgium 

9 MPOC-Temasek Polytechnic Seminar on Palm Oil; Singapore 

7-11 Malaysia International Halal Showcase; Kuala Lumpur 

12-13 Visit to CARB and Energy Commission; California, US 

13-15 China Bakery Exhibition; Guangzhou 

14-17 Seoul Food and Hotel Exhibition; South Korea 

16 Roundtable Discussion on Stearic Acid; Washington, US



84 


May (Cont’d) 

17-19 5 th Malaysian Conference & Exhibition on Anti-aging and Aesthetic Medicine; Kuala Lumpur 

21 Trade Seminar & Dialogue; Djibouti, Ethiopia 

21-23 International Workshop on ‘Conservation of the Bornean Elephant in Sabah’; Kota Kinabalu 

21-25 Thaifex 2008 International Food Exhibition & Conference; Bangkok, Thailand 

26-27 POTS Dubai; UAE 

27 Trade Seminar & Dialogue; Addis Ababa, Ethiopia 

29-30 POTS Mumbai & Ministerial Mission; India 

28-30 Joint Forum on ‘Bio-energy Sustainability and 

Life Cycle Analysis’; California, US 

29-30 Conference on ‘Sustainability and Carbon Footprint’; London, UK 

29-31 48 th National Annual General Meeting & Scientific Meeting of 

Malaysian Medical Association; Kuching, Sarawak 

June 

8-13 13 th International Peat Congress; Tullamore, Ireland 

9-13 Programme for UK Journalist; Kuala Lumpur 

10 Familiarisation Programme for Members of Romanian Parliament; Kelana Jaya, Selangor 

13-14 IOPD XI; Berlin, Germany 

17-18 Seminar on ‘Development of the Oleochemical Industry in China’; Huangshan 

19 REACH Meeting with MIDA; Kuala Lumpur 

June 

Market Visit to Kazakhstan 

23-26 Fispal 2008 & Palm Oil Symposium; Sao Paulo, Brazil 

28-July 2 IFT Annual Meeting; California, US




July 

July 

Launch of Palm Olein-based Cooking Oil; Karachi, Pakistan 

2-6 International Conference on Sustainable Agriculture; Sapporo, Japan 

3-6 The Sunday Times Food Show; Johannesburg, South Africa 

8 MPOC-Nanyang Polytechnic Seminar on Palm Oil; Singapore 

10-12 9 th Malaysia International Food & Beverage Trade Fair; Kuala Lumpur 

10-24 Recee visit to Ghana, Togo and Benin 

11 EU Bio-fuels Workshop on ‘Opportunities for Southeast Asia’; Jakarta, Indonesia 

16 MPOC-Singapore Polytechnic Seminar on Palm Oil; Singapore 

18 MPOC-SIFTS Seminar; Singapore 

29-31 3 rd International Conference on Animal Nutrition; Bangi, Selangor



86 


August 

5 Launch of Palm Olein-Based Cooking Oil; Karachi, Pakistan 

5-8 Meeting on investing in Oil Palm Plantations; Lusaka, Zambia 

6 The Monitor-Malaysian Palm Oil Chef of the Year; Dhaka, Bangladesh 

7 Presentation on MalaysiaPalm Scheme to members of the 

Malaysian Bio-diesel Association; Kelana Jaya, Selangor 

10-17 Familiarisation Programme for Member of UK Parliament; Kuala Lumpur 

11-23 Malaysia Agriculture, Horticulture & Agrotourism Show; Serdang, Selangor 

19 MPOC-NUS Seminar on Palm Oil; Singapore 

19-22 International Symposium & Workshop on Tropical Peatland; 

Kuching, Sarawak 

22-23 Palm Oil Trade Awareness Programme; Kuala Lumpur 

24-26 2 nd International Palm oil Trade Fair & Seminar 2008; Kuala Lumpur 

September 

1-3 47 th Annual Convention of the Philippine Association of 

Food Technologists, Inc, Manila, The Philippines 

3-6 17 th Asia Food Expo; Manila, The Philippines 

7-15 Ministerial Mission to The Hague, Brussels and London 

17-18 In-cosmetics India 2008; Mumbai




October 

13 Palm Oil Leadership Award Dinner; Kuala Lumpur 

16-18 Malaysia-China POTS 2008, Nanjing 

19-23 SIAL Exhibition; Paris, France 

21-23 OFIC 2008; Kuala Lumpur 

21-24 China Confectionery and Ice Cream Exhibition; Tianjin 

22 Meeting with Palm Oil Stakeholders; Rotterdam, The Netherlands 

26-28 ADA 2008; Illinois, US 

27-30 9 th Western China International Economy and Trade Fair; Chengdu 

28 Re-launch of MPOC Cairo Office website; Egypt 

28 Seminar on Palm Oil; Dhaka, Bangladesh 

29 Scientific Seminar on Palm Oil; Dhaka, Bangladesh


88 


November 

Nov 2008- 

Mar 2009 ‘MPOC Delightful Dining’ TV Cooking Show; Pakistan 

3-7 CODEX Committee Meeting on ‘Nutrition and Food for Special Dietary Use’; 

Cape Town, South Africa 

4-5 Workshop on ‘Findings on status of peatland in Malaysia: its relation to CO2 

emissions and climate change’; Petaling Jaya, Selangor 

7 Health & Food Seminar; Cairo, Egypt 

11-14 Halal World Expo 2008; Abu Dhabi, UAE 

12-13 International Conference on ‘Functional Foods and Edible Oils –The Future’; 

Auckland, New Zealand 

16-19 Personal Care Ingredients Exhibition; Bangkok, Thailand 

17-20 RSPO 6 th Roundtable Meeting; Bali, Indonesia 

20-22 Joint Research Centre of the European Commission-Malaysian Palm Oil 

Industry Expert Consultation on ‘Direct and indirect impact of bio-fuel policies on 

tropical deforestation in Malaysia’; Kuala Lumpur 

December 

1-2 6 th International Bio-fuels Conference; Berlin, Germany 

3 Dialogue with Members of Parliament; Berlin, Germany 

5 Palm Oil Technical Seminar for University Students; Hanoi, Vietnam 

15-17 International Conference on the Environment; Penang, Malaysia 

18-20 Dawn ‘All About Lifestyles’ Exhibition; Karachi, Pakistan


89 

financial statements


90 

trustees’ report 

for the year ended 31 december 2008 

The Trustees hereby submit their report and the audited financial statements of MPOC for the year ended 31 December 2008. 

Principal activities 

MPOC is principally engaged in market promotion of palm oil and oil palm products domestically and internationally. There have 

been no significant changes in the nature of this principal activity during the year. 

Results 

RM’000 

Deficit of income over expenditure for the year 361 

Reserves and provisions 

There were no material transfers to or from reserves and provisions during the year under review. 

Board of Trustees of MPOC 

The trustees who served since the date of the last report are: 

Y. Bhg Dato’ Lee Yeow Chor 

Y. Bhg Tan Sri Datuk Dr. Yusof Basiron 

Y. Bhg Dato’ Er Kok Leong @ Er Chai Tuan 

Y. Bhg Datu Vasco Sabat Anak Singkang 

Y. Bhg Dato’ Dr. Mohd. Basri Bin Wahid 

Y. Bhg Dato’ Carl Bek- Nielsen 

Puan Nurmala Binti Abd Rahim 

En. Ramli Bin Putih 

Mr. Low Kock Ching (appointed on 30.06.2008) 

Y. Bhg Dato’ Azhar Bin Abdul Hamid (appointed on 27.06.2008) 

Mr. Venugopal A/L Ramalingam (appointed on 22.04.2008) 

Tuan Haji Eusope @ Yusoff Bin Ismail (appointed on 03.03.2008) 

Y. Bhg Dato’ Seri Lee Oi Hian (retired on 21.02.2009) 

Mr. Kwok Kian Hai (retired on 30.09.2008) 

Y. Bhg Dato’ Sabri Ahmad (retired on 27.06.2008) 

En. Muhammad Hakim See Bin Abdullah (retired on 22.04.2008) 

Y. Bhg Datuk Mazlan Haji Jamaludin (retired on 03.03.2008) 

Y. Bhg Dato’ Low Mong Hua (deceased on 13.04.2008)


board of trustees’ benefits 

91 

Since the end of the previous financial year, no Trustee has received nor become entitled to receive any benefit by reason of a 

contract made by MPOC with a firm of which the Trustee is a member, or with a company in which the Trustee has a substantial 

financial interest. 

Other statutory information 

Before the financial statements of MPOC were made out, the Trustees took reasonable steps to ascertain that: 

i) there are no bad debts to be written off and no provision needs to be made for doubtful debts, and 

ii) all current assets have been stated at the lower of cost and net realisable value. 

At the date of this report, the Trustees are not aware of any circumstances: 

i) that would render it necessary to write off any bad debts, or provide for any doubtful debts, or 

ii) that would render the value attributed to the current assets in MPOC financial statements misleading, or 

iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of MPOC 

misleading or inappropriate, or 

iv) not otherwise dealt with in this report or the financial statements, that would render any amount stated in the financial 

statements of MPOC misleading. 

At the date of this report, there does not exist: 

i) any charge on the assets of MPOC that has arisen since the end of the financial year and which secures the liabilities 

of any other person, or 

ii) any contingent liability in respect of MPOC that has arisen since the end of the financial year. 

No contingent liability or other liability of MPOC has become enforceable, or is likely to become enforceable within the period of 

twelve months after the end of the financial year which, in the opinion of the Trustees, will or may substantially affect the ability 

of MPOC to meet their obligations as and when they fall due. 

In the opinion of the Trustees, the results of the operations of MPOC for the financial year ended 31 December 2008 have not 

been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction 

or event occurred in the interval between the end of that financial year and the date of this report.


92 

auditors 

The auditors, Messrs KPMG, have indicated their willingness to accept re-appointment. 

Signed on behalf of the Board of Trustees in accordance with a resolution of the Trustees: 

………………………………………………….…… 


………………………………………………….…… 

Tan Sri Datuk Dr. Yusof Basiron 

Kuala Lumpur, 

Date: 17 April 2009 

statement by trustees 

pursuant to section 169(15) of the companies act, 1965 

In the opinion of the Trustees, the financial statements set out on pages 96 to 111 are drawn up in accordance with Financial 

Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of MPOC 

as of 31 December 2008 and of its financial performance and cash flows for the year then ended. 

Signed on behalf of the Board of Trustees in accordance with a resolution of the Trustees: 

………………………………………………….…… 


………………………………………………….…… 


Kuala Lumpur, 

Date: 17 April 2009


statutory declaration 

pursuant to section 169(16) of the companies act, 1965 

93 

I, Tan Sri Datuk Dr. Yusof Basiron, the Trustee primarily responsible for the financial management of Malaysian Palm Oil 

Council, do solemnly and sincerely declare that the financial statements set out on pages 96 to 111 are, to the best of my 

knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of 

the provisions of the Statutory Declarations Act, 1960. 

Subscribed and solemnly declared by the above named in Kuala Lumpur on 17 April 2009. 

………………………………………………. 


Before me:


94 

independent auditors’ report 

to the members of Malaysian Palm Oil Council (“MPOC”) 

Report on the Financial Statements 

We have audited the financial statements of Malaysian Palm Oil Council (“MPOC”), which comprise the balance sheet as at 

31 December 2008 of MPOC, and the income and expenditure and cash flow statement of MPOC for the year then ended, and a 

summary of significant accounting policies and other explanatory notes, as set out on pages 100 to 111. 

Trustees’ Responsibility for the Financial Statements 

The MPOC’s Trustees are responsible for the preparation and fair presentation of these financial statements in accordance with 

Financial Reporting Standards and the Companies Act, 1965 in Malaysia. This responsibility includes: designing, implementing 

and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material 

misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting 

estimates that are reasonable in the circumstances. 

Auditors’ Responsibility 

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in 

accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical 

requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from 

material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. 

The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial 

statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to MPOC’s 

preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the 

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the MPOC’s internal control. An audit 

also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates 

made by the Trustees, as well as evaluating the overall presentation of the financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 

Opinion 

In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and 

the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of MPOC as of 31 December 2008 

and of its income and expenditure and cash flows for the year then ended.


independent auditors’ report 

to the members of Malaysian Palm Oil Council (“MPOC”) (cont’d) 

95 

Report on Other Legal and Regulatory Requirements 

In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report that in our opinion the accounting 

and other records and the registers required by the Act to be kept by MPOC have been properly kept in accordance with the 

provisions of the Act. 

Other Matters 

This report is made solely to the members of MPOC, as a body, in accordance with Section 174 of the Companies Act, 1965 

in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report. 

KPMG 

Firm Number: AF 0758 

Chartered Accountants 

Lee Yee Keng 

Approval Number: 2880/04/11(J) 

Chartered Accountant 

Petaling Jaya, 

Date: 17 April 2009


96 

balance sheet 

at 31 december 2008 

Note 2008 2007 

RM’000 RM’000 

Assets 

Property, plant and equipment 3 1,496 617 

Other investment 4 500 500 

Receivables 5 118 139 

Total non-current assets 2,114 1,256 

Current assets 

Receivables 5 778 336 

Cash and cash equivalents 6 44,432 25,808 

Total current assets 45,210 26,144 

Total assets 47,324 27,400 

Accumulated funds - General fund 7 7,717 8,078 

Staff loan fund 8 350 350 

Europe Promotion Fund 9 12 941 

Advertisement Fund 0 2,688 3,046 

Malaysian Palm Oil Wildlife and Conservation Fund 9,551 9,809 

Anti Palm Oil Campaign Fund 2 24,000 - 

Total equity 44,318 22,224 

Liabilities 

Payables and accruals 3 2,223 4,426 

Current tax liability 783 750 

Total current liabilities 3,006 5,176 

Total equity and liabilities 47,324 27,400 

The notes set out on pages 100 to 111 are an integral part of these financial statements.


income and expenditure account 


97 

Note 2008 2007 

RM’000 RM’000 

Income 

Contributions from MPOB 26,320 27,875 

Contributions from other companies 60 00 

Other operating income 34 69 

26,414 28,044 

Less: Expenditure 

Auditors’ remuneration 6 4 

Depreciation 6 74 

Development cost ,670 2,167 

Entertainment 40 39 

EPF/SOCSO 14 547 585 

Fixed assets maintenance 83 76 

Meeting allowances and expenses 69 71 

Office supplies 417 220 

Other professional services 356 289 

Postages and dispatches 66 63 

Project expenses 5 16,505 5,899 

Rental of building and equipment 570 536 

Salaries, allowances and bonus 14 6,055 5,155 

Secretarial and accountancy fees 46 49 

Staff travelling expenses 272 386 

Telephone and fax 77 30 

Unutilised leave 68 9 

Miscellaneous expenses - 2 

Property, plant and equipment written off - 

27,119 25,874 

Operating (deficit)/surplus (705) 2,170 

Interest income from fixed deposits 54 500 

Interest income from staff loan 7 7 

Profit margin income from other investment 7 3 

(Deficit)/Surplus of income over expenditure before tax (150 ) 2,690 

Tax expense 6 (211 ) (153 ) 

(Deficit)/Surplus of income over expenditure for the year (361 ) 2,537 

Accumulated fund surplus brought forward 8,078 5,541 

Accumulated fund surplus carried forward 7,717 8,078 



98 

Statement of total 

recognised gains and losses for the year ended 31 December 2008 

MPOC has not recognised gains and losses other than the (deficit)/surplus of income over expenditure for the year and 

previous year. 



cash flow statement 


99 

2008 2007 

RM’000 RM’000 

Cash flows from operating activities 

(Deficit)/Surplus of income over expenditure before tax 

- General fund (150) 2,690 

- Europe Promotion Fund (929) 941 

- Advertisement Fund (358) 3,046 

- Malaysian Palm Oil Wildlife and Conservation Fund (258) 9,809 

- Anti Palm Oil Campaign Fund 24,000 - 

22,305 6,486 

Adjustments for: 

Depreciation 6 74 

Interest income from fixed deposits 

- General fund (541) (500) 

- MPOWCF (290) (145) 

Interest income from staff loan (7) (7) 

Profit margin income from other investment (7) (13) 

Property, plant and equipment written off - 

Surplus of income over expenditure before changes in working capital 21,622 5,995 

Changes in working capital 

Receivables (476) 4 

Payables and accruals (2,203) 1,008 

Cash generated from operations 8,943 7,007 

Income taxes paid (178) (59) 

Net cash generated from operating activities 8,765 6,948 

Cash flows from investing activities 

Acquisition of property, plant and equipment (1,041) (346) 

Interest received from fixed deposits 83 554 

Interest received from staff loan 7 7 


Proceed from/(Advances to) staff loan 55 (3) 

Acquisition of other investment - (500) 

Net cash used in investing activities (141 ) (275 ) 

Net increase in cash and cash equivalents 8,624 6,673 

Cash and cash equivalents at 1 January 25,808 9,135 

Cash and cash equivalents at 31 December 44,432 25,808 

Cash and cash equivalents comprise: 

Cash and bank balances 5,432 2,808 

Deposits placed with licensed banks 39,000 23,000 

44,432 25,808


100 

notes to the 

financial statements 

MPOC is a non-profit making organisation and is a company limited by guarantee. Under para 8 of the Memorandum of 

Association of the MPOC, the liability of each members’ organisation is restricted to a maximum of RM100 each in respect 

of the liabilities of the MPOC contracted in the case of winding up. At 31 December 2008, there were 6 members (2007 – 6 

members). 

MPOC’s address of the principal place of business and registered office is as follows: 

2nd Floor, Wisma Sawit 

Lot 6, SS6, Jalan Perbandaran 

47301 Kelana Jaya 

Selangor Darul Ehsan, Malaysia. 

MPOC is principally engaged in market promotion of palm oil and oil palm products domestically and internationally. 

There have been no significant changes in the nature of this principal activity during the year. 

The financial statements were approved by the Board of Trustees on 17 April 2009. 

1. Basis of preparation 

(a) Statement of compliance 

The financial statements of MPOC have been prepared in accordance with Financial Reporting Standards (FRS), 

accounting principles generally accepted and the Companies Act, 1965 in Malaysia. 

MPOC has not applied the following accounting standards (including its consequential amendments) and 

interpretations that have been issued by the Malaysian Accounting Standards Board (MASB) but are not yet 

effective: 

FRSs / Interpretations 

Effective date 

FRS 4, Insurance Contracts January 2010 

FRS 7, Financial Instruments: Disclosures January 2010 

FRS 8, Operating Segments July 2009 

FRS 139, Financial Instruments: Recognition and Measurement January 2010 

IC Interpretation 9, Reassessment of Embedded Derivatives January 2010 

IC Interpretation 10, Interim Financial Reporting and Impairment January 2010 

MPOC plans to apply the abovementioned FRSs/Interpretations, where applicable, from the annual period beginning 1 January 

2010.



financial statements (cont’d) 

101 

1. Basis of preparation (cont’d) 

(a) Statement of compliance (cont’d) 

The impact of applying FRS 4, FRS 7 and FRS 139 on the financial statements upon first adoption as required by 

paragraph 30(b) of FRS 108, Accounting Policies, Changes in Accounting Estimates and Errors is not disclosed by 

virtue of the exemptions given in the respective FRSs. Other than the implications as discussed below, the initial 

application of the above standards (and its consequential amendments) and interpretations is not expected to have 

any material impact on the financial statements of MPOC. 

(b) Basis of measurement 

The financial statements have been prepared on the historical cost basis. 

(c) Functional and presentation currency 

The financial statements are presented in RM (Ringgit Malaysia), which is MPOC’s functional currency. 

(d) Use of estimates and judgements 

The preparation of financial statements requires management to make judgements, estimates and assumptions that 

affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. 

Actual results may differ from these estimates. 

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are 

recognised in the period in which the estimate is revised and in any future periods affected. 

There are no significant areas of estimation, uncertainty and critical judgements in applying accounting policies 

that have significant effect on the amounts recognised in the financial statements.


102 



2. Significant accounting policies 

The accounting policies set out below have been applied consistently to the periods presented in these financial 

statements, unless otherwise stated. 

(a) Investment in equity securities 

Investments in equity securities are recognised initially at cost plus attributable transaction costs. Where the opinion 

of the Trustees, there is a decline other than temporary in the value of non-current equity securities, the allowance 

for diminution in value is recognised as an expense in the financial year in which the decline is identified. 

(b) Foreign currency 

Foreign currency transactions 

Transactions in foreign currencies are translated to the respective functional currencies of MPOC at exchange 

rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance 

sheet date are retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and 

liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional 

currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on 

retranslation are recognised in the income statements. 

(c) Property, plant and equipment 

(i) Recognition and measurement 

Items of property, plant and equipment are stated at cost less any accumulated depreciation and any 

accumulated impairment loss. 

Cost includes expenditures that are directly attributable to the acquisition of asset and any other costs directly 

attributable to bringing the asset to working condition for its intended use, and the costs of dismantling and 

removing the items and restoring the site on which they are located. Purchased software that is integral to the 

functionality of the related equipment is capitalised as part of that equipment. 

When significant parts of an item of property, plant and equipment have different useful lives, they are 

accounted for as separate items (major components) of property, plant and equipment. 

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the 

proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net 

within “other income” or “other operating expenses” respectively in the income statements.




103 

2. Significant accounting policies (cont’d) 

(c) Property, plant and equipment (continued) 

(ii) Depreciation 

Depreciation is recognised in the income and expenditure statement on a straight-line basis over the estimated 

useful lives of each part of an item of property, plant and equipment. Building under construction is not 

depreciated until the asset are ready for their intended use. 

The estimated useful lives for the current and comparative periods are as follows: 

Exhibition equipment 

Office furniture and fittings 

Office equipment 

Communication equipment 

Motor vehicles 

8 years 

8 years 

8 years 

8 years 

5 years 

Property, plant and equipment purchased by MPOC’s representative offices overseas are expensed off in the 

income and expenditure account as and when incurred. 

Depreciation methods, useful lives and residual values are reassessed at the balance sheet date. 

(d) Receivables 

Receivables are initially recognised at their cost when the contractual right to receive cash or another financial 

asset from another entity is established. 

Subsequent to initial recognition, receivables are stated at cost less allowance for doubtful debts. 

Receivables are not held for the purpose of trading. 

(e) Cash and cash equivalents 

Cash and cash equivalents consist of cash on hand, balances and deposits with banks and highly liquid 

investments which have an insignificant risk of changes in value. For the purpose of the cash flow statement, 

cash and cash equivalents are presented net of bank overdrafts and pledged deposits.


104 




(f) Impairment of assets 

The carrying amount of assets, except for financial assets is reviewed at each balance sheet date to determine 

whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is 

estimated. 

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less 

costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using 

a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to 

the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that 

generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or 

groups of assets (the “cash-generating unit”). 

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its 

recoverable amount. Impairment losses are recognised in the income statements. Impairment losses recognised 

in respect of cash-generating units are to reduce the carrying amount of the assets in the unit (groups of units) on a 

prorate basis. 

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss 

has decreased or no longer exist. An impairment loss is reversed if there has been a change in the estimates used 

to determine the recoverable amount. An impairment loss is recovered only to the extent that the asset’s carrying 

amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, 

if no impairment loss has been recognised. Reversals of impairment losses are credited to the income and expenditure 

statement in the year in which the reversals are recognised. 

(g) Employee benefits 

Short-term employee benefits 

Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave are 

measured on an undiscounted basis and are expensed as the related service is provided. 

MPOC’s contribution to statutory pension funds is charged to the income statements in the year to which they relate. 

Once the contributions have been paid, MPOC has no further payment obligations




105 


(h) Payables 

Payables are measured initially and subsequently at cost. Payables are recognised when there is a contractual 

obligation to deliver cash or another financial asset to another entity. 

(i) Revenue recognition 

(i) Contribution from Malaysian Palm Oil Board 

The contribution is recognised in the income statement as it becomes entitled based on the approved annual 

budget. 

(ii) Interest income 

Interest income is recognised in the income statement as it accrues, taking into account the effective yield on 

the asset. 

(j) Special purpose funds 

The contributions and expenses are recognised in the income statement on a cash basis. 

(k) Tax expense 

The tax expense in the income statement represents taxation at current tax rates based on interest income and profit 

margin earned during the year. 

The payment of income tax in respect of the statutory income in relation to MPOC’s sources of income is exempted 

by Section 127 (3)(b) of the Income Tax Act, 1967.


106 



3. Property, plant and equipment 

Office 

furniture 

Building 

Exhibition and Office Communication Motor under 

equipment fittings equipment equipment vehicles construction Total 

Cost RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 

At 1 January 2007 76 93 380 70 502 - ,221 

Additions - 2 60 283 - 346 

At 31 December 2007/1 January 2008 76 95 440 7 785 - ,567 

Additions - 0 2 0 - 1,019 ,041 

Write off - (4 ) (285 ) (11 ) - - (300 ) 

At 31 December 2008 76 20 57 70 785 ,019 2,308 

Accumulated depreciation 

At 1 January 2008 7 44 328 43 90 - 776 

Depreciation for the year 3 0 6 4 4 - 74 

At 31 December 2007/1 January 2008 74 54 344 47 33 - 950 

Depreciation for the year 2 0 6 4 29 - 61 

Write off - (4 ) (285 ) (10 ) - - (299 ) 

At 31 December 2008 76 60 75 4 460 - 812 

Carrying amounts 

At 1 January 2007 5 49 52 27 312 - 445 

At 31 December 2007/1 January 2008 2 4 96 24 454 - 617 

At 31 December 2008 - 4 82 29 325 ,019 ,496




107 

4. Other investment 

2008 2007 

RM’000 RM’000 

Non-current 

At cost: 

Restricted Mudharabah Structured Investment 500 500 

5. Receivables 

2008 2007 

RM’000 RM’000 

Non-current 

Staff loan 8 39 

Current 

Staff loan 7 51 

Other receivables 76 285 

778 336 

The staff loan is unsecured, charged interest at 4 % (2005 - 4%) per annum and is repayable by monthly installment over 

a period ranging from 3 to 5 years. 

6. Cash and cash equivalents 

2008 2007 

RM’000 RM’000 

Deposits placed with licensed banks 39,000 23,000 

Cash and bank balances 5,432 2,808 

44,432 25,808 

7. Accumulated funds - General fund 

2008 2007 

RM’000 RM’000 

At 1 January 8,078 5,541 

(Deficit)/Surplus of income over expenditure for the year (361) 2,537 

At 31 December 7,717 8,078 

8. Staff loan fund 

Staff loan fund is a fund allocated from accumulated funds in previous years which is available for the provision of 

loan to staff. At year end, the total staff loan provided is amounting to RM134,717 (2007 - RM190,410)(Note 5).


108 



9. Europe Promotion Fund 

Europe Promotion Fund was allocated during the year by Malaysian Ministry of Plantation Industries and Commodities 

(KPPK) to MPOC for overseas palm oil promotion to fight against anti palm oil campaign in Europe region. 

This fund had a deficit of income over expenditure of RM928,926 (2007 - Surplus of RM940,930) during the year. 

10. Advertisement Fund 

Advertisement Fund was approved by KPPK for the promotion and branding of Malaysian palm oil through electronic 

media in Europe and U.S. Fund was allocated by MPOB. 

This fund had a deficit of income over expenditure of RM358,267 (2007 - Surplus of RM3,046,053) during the year. 

11. Malaysian Palm Oil Wildlife and Conservation Fund 

Malaysian Palm Oil Wildlife and Conservation Fund was established to enhance environmental sustainability, 

biodiversity conservation and wild life preservation. This fund was allocated by MPOB. 

This fund had a deficit of income over expenditure of RM258,223 (2007 - Surplus of RM9,808,971) and interest 

received from fixed deposits of RM290,293 (2007 - RM145,147) during the year. 

12. Anti Palm Oil Campaign Fund 

This fund of RM24 million established on during the year to fight against anti palm oil campaign. 

13. Payables and accruals 

2008 2007 

RM’000 RM’000 

Other payables 43 2,067 

Accrued expenses 417 ,131 

Provisions for PRIME - 80 

Provisions for bonus ,093 934 

Provisions for unutilised leave 282 214 

2,223 4,426




109 

14. Employee information 

2008 2007 

RM’000 RM’000 

Employees’ Provident Fund 547 585 

Other staff costs 6,055 5,155 

6,602 5,740 

15. Project expenses 

2008 2007 

RM’000 RM’000 

Scientific activities 

Nutrition study and seminars 743 515 

Nutrition Advisory Committee expenses: 

Palm Oil Awareness Programme - 57 

743 572 

Market development/promotion 

Market mission ,15 259 

Educational visits 263 340 

Seminars ,627 4,443 

Sponsorship and core programmes - 23 

Consumer promotion ,882 ,564 

Global networking 4,808 4,966 

9,73 ,595 

Public relations and promotion 

Exhibitions/trade fairs 2,963 ,142 

Advertising ,039 920 

4,002 2,062 

Publications ,602 801 

Professional services 

Legal/nutrition consultants 3 771 

Other- certification 6 98 

427 869 

1 6,505 5,899


110 



16. Tax expense 

2008 2007 

RM’000 RM’000 

Current tax expense 

- Current 204 71 

- Under/(Over)provision in prior years 7 (18) 

2 

53 

Reconciliation of effective tax expense 

Interest income from fixed deposits 83 645 

Interest income from staff loan 7 7 


Chargeable income 845 665 

Income tax using Malaysian tax rates 204 71 

Under/(Over)provision in prior years 7 (18) 

Tax expense 2 53 

MPOC is exempted from tax in respect of contribution from Malaysian Palm Oil Board (“MPOB”) under Section 127(3)(b) 

of the Income Tax Act, 1967. 

The taxation charge in the income statement is in respect of interest income earned. 

17. Financial instruments 

Financial risk management objectives and policies 

Exposure to credit, interest rate and currency risks arises in the normal course of the MPOC’s business. The nature of 

these risks and the MPOC’s management of these risks are summarised below: 

Credit risk 

MPOC’s primary exposure to credit risk arises through its other receivables. 

At balance sheet date, MPOC has no significant exposure to any individual customer. The maximum exposure to credit 

risk is represented by the carrying amount of each financial asset presented in the balance sheet.




111 

17. Financial instruments (Cont’d) 

Interest rate risk 

MPOC places cash balances with reputable financial institutions to generate interest income for MPOC. It manages its 

interest rate risk by placing such balances on varying maturities and interest rate terms. 

Currency risk 

It is not MPOC’s policy to enter into foreign exchange contracts in managing its foreign exchange risk resulting from cash 

flows from transactions denominated in foreign currency. 

Liquidity risk 

MPOC monitors and maintains a level of cash and cash equivalents deemed adequate by management to finance its 

operation and to mitigate the effects of fluctuation in cash flows. 

Effective interest rates 

In respect of interest-earning assets, the following table indicates their effective interest rates at the balance sheet date 

and the periods in which they reprice or mature, whichever is earlier. 

2008 2007 

Effective 

Effective 

interest Within 1 - 5 interest Within 1 - 5 

rate Total 1 year years rate Total 1 year years 

% RM’000 RM’000 RM’000 % RM’000 RM’000 RM’000 

Financial assets 

Staff loans 4.0 135 17 118 4.0 190 51 139 

Deposits placed with 

licensed banks 3.5 39,000 39,000 - 3.5 23,000 23,000 - 

Fair values 

In respect of other investment, cash and cash equivalents, receivables and payables and accruals, the carrying amounts 

approximate fair value due to the favorable rates earned and relatively short term nature of these financial instruments. 

The loans provided to the staff were at favorable rates and hence, it is not practicable to determine the fair value with 

sufficient reliability. 

It was not practicable to estimate the fair value of the MPOC’s other investment of investment in unquoted shares due to 

the lack of comparable quoted market prices and the inability to estimate fair value without incurring excessive costs.


112 list of abbreviations 

CDSBO 

CNO 

CO 

CPKO 

CPL 

CPO 

CPS 

CSO 

DFPL / DPL 

MO 

PFAD 

PKC 

PKL 

PKM 

PKS 

PKO 

PL 

PMF 

PO 

PPKO 

PPO 

RBD 

RBD PL 

RBD PO 

RBD PS 

RSO 

SBO 

SFO 

Crude Degummed Soybean Oil 

Coconut Oil 

Cooking Oil 

Crude Palm Kernel Oil 

Crude Palm Olein 

Crude Palm Oil 

Crude Palm Stearin 

Cottonseed Oil 

Double Fractionated Palm Olein 

Mustard Oil 

Palm Fatty Acid Distillates 

Palm Kernel Cake 

Palm Kernel Olein 

Palm Kernel Meal 

Palm Kernel Stearin 

Palm Kernel Oil 

Palm Olein 

Palm Mid Fraction 

Palm Oil 

Processed Palm Kernel Oil 

Processed Palm Oil 

Refined, Bleached & Deodorised (physical refining) 

Refined, Bleached & Deodorised Palm Olein 

Refined, Bleached & Deodorised Palm Oil 

Refined, Bleached & Deodorised Palm Stearin 

Rapeseed Oil 

Soybean Oil 

Sunflower Oil

Malaysian Palm Oil Council (192835-K) 

2nd Floor, Wisma Sawit, Lot 6, SS6, Jalan Perbandaran, 47301 Kelana Jaya, Selangor Darul Ehsan, Malaysia 

Tel: +603 - 7806 4097, Fax: +603 - 7806 2272 

Websites: www.mpoc.org.my, www.malaysiapalmoil.org

The Oil of the Future - American Palm Oil Council

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