Kuala Lumpur: The progress in replanting oil palm trees in Malaysia is not meeting expectations, with the country achieving the replanting of only 114,000 hectares, or 2.0 per cent of its total planted area in 2024. This figure marks a decrease from the 132,000 hectares (2.3 per cent) recorded in 2023.
According to BERNAMA News Agency, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani emphasized that this performance is below the recommended annual target of 4 to 5 per cent, which equates to approximately 285,000 hectares per year.
Johari highlighted the importance of increasing yield to ensure the long-term viability of the palm oil industry. The government prioritizes replanting as a means to boost productivity without expanding land use. He stressed that replanting is a critical issue that directly impacts the industry's future, and a long-term commitment is necessary to maintain growth and resilience, especially as Malaysia commits to preventing deforestation due to palm oil cultivation.
Efforts to enhance replanting rates are being intensified, with a focus on using only high-quality planting material. Johari pointed out the vulnerability of smallholders, who form a significant portion of the industry, to dishonest practices by certain nurseries. To protect their interests and ensure high-quality seeds, the government, through the Malaysian Palm Oil Board (MPOB), will conduct random checks on nurseries.
To tackle challenges like ageing palm trees and stagnant yields, the Ministry of Plantation Industries and Commodities (KPK) is collaborating with the Ministry of Finance to increase grant assistance for oil palm replanting and streamline the application process for smallholders. Additionally, various tax incentives are available to other growers and supply chain players, showcasing Malaysia's commitment to supporting industry stakeholders.
Johari also addressed the role of artificial intelligence (AI) in the palm oil industry, urging the sector to embrace new technologies to remain competitive. He cited a palm oil mill in Kuala Kangsar that integrated an AI-powered system, achieving significant operational improvements and cost savings. The adoption of AI is expected to enhance productivity and reduce operational costs, ensuring the industry's competitiveness and sustainability in the global market.