MALAYSIA-EGYPT OIL PALM INDUSTRY &

SHARING OF TECHNOLOGIES

Hisham Hussain

Regional Manager of MPOB Africa

Joint In-House Seminar MPOB - NRC

National Research Center

11 March 2019

4. MALAYSIAN OIL PALM INDUSTRY

PERFORMANCE 2018

6. TAKE HOME MESSAGE & CONCLUSION

3. ENSURING QUALITY FOR MALAYSIAN PALM

PRODUCTS

1. INTRODUCTION TO MPOB

PRESENTATION OUTLINE

5. SHARING OF TECHNOLOGIES

2. MALAYSIAN OIL PALM INDUSTRY

INTRODUCTION TO MALAYSIAN PALM OIL

BOARD (MPOB)1

Establishment of MPOB

..…taking over the functions of Palm Oil Research Institute of Malaysia (PORIM) and

Palm Oil Registration and Licensing Authority (PORLA)

Malaysian Palm Oil Board (MPOB) was

established by an Act of Parliament (Act 582),

effective 1 May 2000

Estd. 1979

Function: Research

& Development

Malaysian Palm Oil Board (MPOB) is a government agency under the Ministry of

Primary Industries, Malaysia

Estd. 1977

Function: Licensing

& Enforcement

2000

OIL PALM INDUSTRY

TRANSFORMATION

Vision

Mission

VisionTo become a Nobel Laureate-

producing research and development

institution, providing leadership and

impetus for the development of a

highly diversified, value-added,

globally competitive and sustainable

oil palm industry.

MissionTo enhance the well-being of the

Malaysian oil palm industry through

excellent research & development

and services.

2050

High

Income

Sustainable

Development

Value

Addition

R&D 3-Pronged Strategies

Vision, Mission & Strategies of MPOB

Functions of MPOB

•Research & Development• Plantation, Biotechnology, Milling & Processing,

Oleochemicals, Food & Nutrition, Techno-economics

• Services• Licensing & Enforcement, Extension, Transfer of Technology &

Commercialization, Training & Consultancy, Resource &

Information hub

R&D&CResearch & Development & Commercialization

30%Commercialization

Rate

676Total Technologies

Developed

Local Abroad

* Malaysian National average, 3-5%

2018:

25 TOT (Transfer of

Technology)

5 TOS (Transfer of Services)

MPOB Regional offices worldwide

6 Regional

Offices

• Brussels

• Cairo

• Karachi

• PORTSIM China

• Tehran

• Washington DC

PORTSIM China

MPOB Karachi

MPOB Cairo

MPOB Washington DC

MPOB Brussels

MPOB Head Office

MPOB Tehran

Malaysian oil palm industry

2

Oil palm at a glance

Palm Oil Palm Kernel Oil

Oil

#1

Oil

#2

Oil palm FRUITS produce two types of oil

Oil Palm Tree(Elaeis guineensis)

Fresh Fruit Bunch (FFB)

Oil Palm Fruits

fro

m K

ern

el

Fresh Fruit Bunch (FFB)

Crude Palm Oil (CPO)

4 t/ha/yr

Oil Palm Fruits

Kernel

Palm Kernel Oil (PKO)

0.5 t/ha/yrPalm Kernel Cake (PKC)

0.5 t/ha/yr

Mesocarp

Average Oil Palm Yields

Oil palm – the most productive oil crop

Average Oil Yield (t/ha/year)

Harvested Area (mil ha) vs. Production (mil tonnes),

2016

Oil 1 hectareproduces X tonnes oil

1 tonne oilneeds Y ha land

CPO 4.0 0.25

SBO 0.4 2.50

SFO 0.6 1.67

RSO 0.8 1.25

Oil Palm SUSTAINABILITY

18.2 mil ha of land produces

64.67 mil tonnes of palm oil*

* Including palm kernel oil

119.54 mil ha of land produces

51.5 mil tonnes of soybean oil

Degumming

Bleaching

Deacidification

and

deodorization

Physical Refining

process

RBD Palm OilCrude

Palm Oil

180°C – 260°C

under vacuum

Filtration

Bleached Palm Oil

80°C – 90°C

90°C – 120°C

Fractionation

process

13

Vitamin E

(Tocotrienols

& Tocopherols)

Carotene

from Red

Palm OilOther Phytonutrients:

Squalene Lecithin Coenzyme Q10Phytosterol

Source: Choo et al., 2008

OIL PALM

FRUITS

Palm Phytonutrients

Ensuring Quality of Malaysian

Palm Products3

STRATEGIES AND

POLICIES TO

ASSURE SAFETY

AND QUALITY

STRATEGIES TO ASSURE PALM OIL

QUALITY

STRATEGIES TO ASSURE SAFETY AND

QUALITY

Strategy 1

Strengthening regulatory

framework towards quality assurance through MPOB Act

1998

Strategy 2

Enhancing R&D in nutritional, quality applications and

analytical methods

Strategy 3

Aligning legislations and standard to meet

the international requirements

Sectors in Palm Oil Industry

LICENSING & ENFORCEMENT

Assist in the development & coordination of objectives and

policies Healthy Growth

Global Competition

Quality Assurance

Reduce Social Cost

Generate Economic Wealth

NATIONAL

OBJECTIVES

Subsidiary Legislation

Guidelines

Legislative Framework of

the Malaysian Oil Palm Industry

1

2

3

4

5

6

MPOB (Licensing) Regulations 2005

Products Standards Specifications

Act

582

A HIGHLY REGULATED INDUSTRY

➢Land Matters

• National Land Code 1965

• Land Acquisition Act 1960

➢Environmental Matters

• Environmental Land

Conservation Act 1960

(revised 1989)

• Quality Act 1974

(Environmental Quality)

(Prescribed Premises) (Crude

Palm Oil) Regulation 1977

• Environmental Quality (Clean

Air) Regulation 1978

• Environmental Quality

(Prescribed Activities)

(Environmental Impact

Assessment) Order 1987

Examples➢Labour and Employees Matters

• Labour Law

• Workers’ Minimum Standard of Housing & Amenities Act 1990

• Occupational Safety & Health Act 1977

• Factories & Machinery (Noise Exposure) Regulations 1989

• Passport Act 1966

• Education Act 1996

➢Pesticide Use

• Pesticides Act 1974 (Pesticides Registration) Rules 1988

• Pesticides (Licensing for sale & storage) Rules 1988

• Pesticides (Labeling) Regulations 1984

➢Wildlife Matters

• Wildlife Conservation Act 2008 [Act 716]

➢Biodiversity

• National Biodiversity Policy 2016-2025

>60Laws &

Regulations

MPOB licenses

all critical

activities of the

Malaysian Oil

Palm Sector and

enforces its

orderly conduct

• A National standard on sustainability

– Applicable to all categories of oil palm industry covering

small, medium and large plantations

• A standard that:

– Complies with Malaysian laws

– Ratified with international agreements/ conventions to

ensure that all oil palm premises in Malaysia are certified

sustainable

• A Standard that is based on the 3 pillars of sustainability:

– People, Planet, Profit.

What is MSPO?

Source: Malaysian Palm Oil Certification Council (MPOCC)

Malaysian Sustainable Palm Oil (MSPO)

Structured Sustainability Practices

1980s

~ Quality Certification

2000s

~ Codes of Practice

– Quality, food safety & sustainability

2005

RSPO –business standards

~ Voluntary implementation

2013

MSPO –Malaysian Standard, MS2530:2013

2015

~ Voluntaryimplementation of MSPO

2018-19

~ Mandatory

preparation of MSPO

• Oil palm industry has always been adhering to requirements of importing countries

• Continuous improvements through structured sustainability practices

• Implementing 3P sustainability principles of People, Planet, Profit

7 Principles

23 Criteria

35 IndicatorsMalaysian

Sustainable

Palm

Oil

1 January

2020Mandatory Implementation

of MSPO

MSPO Timeline

20

Announcement

on Mandatory

Certification2017

Development of MSPO

Standards2011

Voluntary certification

begins2015

Launching of

Malaysian Standard

MSPO MS25302013

Mandatory

Implementation

Incentives to

companies and

smallholders

2018-

19

Malaysian Sustainable Palm Oil

(MSPO)

Recognition

Sourcing Code for Palm Oil

2018

1 Jan

2020

Malaysian Sustainable Palm Oil

(MSPO)

Malaysian Oil Palm Industry

Performance4

Oil Palm Planted Area by Region, 2018

MALAYSIA

Total: 5.85 Mn HaMatured: 5.19 Mn Ha

Immature: 0.66 Mn Ha

Total: 2.73 Mn Ha

Matured: 2.41 Mn Ha

Immature: 0.32 Mn Ha

PENINSULAR

MALAYSIA

Total: 1.55 Mn Ha

Matured: 1.38 Mn Ha

Immature: 0.17 Mn Ha

SABAH

Total: 1.57 Mn Ha

Matured: 1.40 Mn Ha

Immature: 0.17 Mn Ha

SARAWAK

22

December 2018

Peninsular

Malaysia

Sabah

Sarawak

Export Volume of Oil Palm Products,

2018 Vs 2017

0

2

4

6

8

10

12

14

16

18

Palm Oil PK Oil PK Cake Oleo Biodiesel FP Others

Mn

T

2018 2017

Product 2018 (Mn T) 2017 (Mn T)

Palm Oil 16.49 16.56

Palm Kernel Oil 0.92 0.97

Palm Kernel Cake 2.29 2.21

Oleochemicals 3.05 2.77

Biodiesel 0.51 0.24

Finished Products* 0.61 0.41

Others** 0.95 0.82

TOTAL 24.82 23.97

* Finished Products (FP) – Shortening, Veg. Fat, Veg. Ghee, Soap, etc.

** Others – Palm Kernel Shell, Oil Palm Fibre, Sludge/Residue Oil, etc.

23

20

18

20

17

24

0.46

0.46

0.54

0.49

0.63

0.69

1.16

1.86

1.91

2.51

0.00 1.00 2.00 3.00

JAPAN

VIETNAM

IRAN

USA

TURKEY

PHILIPPINES

PAKISTAN

CHINA

E.U

INDIA

Mn T

kushairi@mpob.gov.my

Malaysian palm oil major export destinations, 2018

TOP

10Countries

10.72 Mn T

(65%)

Egypt: Import of palm products from Malaysian

Source: MPOB, 2018

Exports of Malaysian palm products had contributed RM521.38 million

(USD129.22 million) in revenue to the Malaysia’s economy in 2018.

0

50

100

150

200

250

300

350

400

450

500

2013 2014 2015 2016 2017 2018

Tho

usa

nd

s

Palm Oil Palm Kernel Oil Oleochemicals Finished Products

PALM OIL: Sharing of Technologies5

Palm oil for food applications

Palm-based

cheese

Production of Trans free

Palm-based

shortening/margarine

Production of palm-

based mayonnaise

Palm-based

Ice-creamBread using trans

free

palm-based

margarineTop Olein: IV 72

as frying oil

Santan Sawit

Dry-mix

ice cream

powder

Cendol using

Santan Sawit

Palm Oil is Rich With PhytonutrientsSource of PRO-VITAMIN A and

VITAMIN E

28

Red Palm Oil for Shortening, margarine, butter oil substitute

Carotino Olein, Superolein, Carofry,

Carotino Oil, Natural Palm Carotenes

and Tocotrienols Concentrates

Red Palm Oil for Cooking/Salad Oil

Red palm oil technology for consumer and

industrial products

Selected Human Studies of Long Term Intake of Palm Olein

Carried Out Over the Last 20 Years (1992-2017)

REFERENCES:

1. Ng et al. 1992 Am J Coll Nutr

2. Truswell AS et al. 1992 Nutr. Res.

3. Choudhury et al. 1995 AJCN

4. Sundram et al. 1995 Nutr. Biochem.

5. Ghafoorunissa et al. 1995 Lipids

6. Zhang et al. 1997 Asia Pacific J Clin Nutr

7. Voon et al. 2011 AJCN

8. Lucci et al. 2016 Food Funct.

9. Sun et al. 2017 Asia Pacific J. Clin. Nutr.

Palm olein behaves more like a monounsaturated oil in its

effects on cholesterol levels, although it contains saturated fatty

acids

Palm Oil: The Healthy Choice

Advantages of Palm Oil in Food

Source: MPOC

Palm-based Oleochemical Technologies

Agrochemicals

Industrial Chemicals

Surfactants & Detergents

Lubricants & Grease

Pharmaceuticals Coatings

Paints Lacquers

Cosmetic & Personal Care

Crayon

Soap

Candles & wax

Lubricant

Cosmetic & Personal Care Household products

Soap

Hair Care products with Vit. E

Candles

OIL PALM

BIOMASS

BOARD OF

VARIOUS KINDS

• MDF

• Plywood

• Moulded

particleboard

• Sawn lumber

PROPERTIES OF OPT,

OPF & EFB FIBRE BUNDLES

• Fibre quality

• Fibre morphology

• Fibre properties

• Usable

fibreractions

OTHER PRODUCT

TYPES

• Oil palm heart

• Carbon

products

• Carboxymethyl

cellulose

• Fine chemicals

FIBRE REINFORCING

COMPOSITES

• Agrolumber

• Plastic

composite

PAPER PULP

& PAPER PRODUCTS

• Chemical pulp

• Semi-mechanical

pulp

• Mechanical pulp

• Moulded paper

products

• Soilless planting

medium

Oil palm biomass technologies

Oil palm biomass for Renewable Energy

Bio-Oils From Pyrolisis

Process

Palm Biomass Briquettes

Palm Derived BioethanolSyngas from palm

biomass gasification

process

Palm-based animal feed

➢ Palm-based Automotive components

➢ Cosmetics and Personal Care

➢ Vitamin E – palm Tocotrienols

➢ Red palm oil and Carotene

➢ Chocolate Spread

➢ Palm-based Santan

➢ Palm Oil-based Ice Cream

➢ Palm-based Shelf Stable Margarine Formulation

UPSTREAM DOWNSTREAMMIDSTREAM

Total technologies (TOT) developed from 1986 to date (2018) : 678

technologies

Total technologies commercialised = 198 technologies

NO. Examples of technologies developed by MPOB

1 Santan Sawit PLUS

2Structured Palm Mid Fraction as Hardstock for Cake

Margarines

3Structured Palm Mid Fraction as Hardstock for Cold Spreadable

Table Margarines

4 Palm-based frozen cream puff

5 Palm Mid Fraction (PMF) Based Bakery Fats

6Charcoal Production from Palm Kernel Shells Using Microwave

Carbonization System

7 High-Density Palm Plywood

8Improved Palm-Based Micro emulsions as All Purpose Liquid

Cleaners

List of MPOB technology ready for commercialization

36

MPOB Technical support services

MPOB provides the following technical

services for both food and non-food

manufacturing sectors:

- Formulation development services for food

(e.g. margarine, chocolate, specialty fatetc.) and non-food (e.g. soap, facial cream,

personal care products etc.).

- Technical assistance in pilot plant

commissioning in factory using palm

products.

- Provide Hands-on technical training (e.g.

Margarine Course & Soap Processing

Course).

- Incubation Centre facilities.

- Conduct technical in-house seminars.

feeds the world!As a sustainable crop, palm oil will play a critical role

in helping to feed the world as it is…

Most

Productive

10X more

Productive than

Soybean

Efficient

High Output

to input

Energy Ratio

Versatile And

Cost effective

Used in 1000s

of Food

Products

Worldwide

Balanced &

Nutritious Oil

Contains Equal

Portion of

Saturated and

Unsaturated

Fatty Acids

TAKE HOME MESSAGE

NATURE’S GIFT TO MALAYSIA, MALAYSIA’S GIFT TO THE WORLD!

Egypt has a great potential as important trading partners with Malaysia which will benefit both nations. MPOB is ready to share our technologies relevant to Morocco market.

Malaysia emphasizes quality palm oil production and utilization following international standards and specifications

Palm oil is economically competitive because it has many uses for food and non-food, such as oleochemicals and renewable energy

Palm oil is a healthy oil which can contribute significantly to food security, safety and quality

CONCLUSIONS

THANK YOU

Hisham Hussain

Regional Manager of MPOB Africa

Malaysian Palm Oil Board

E-mail: hishamhussain@mpob.gov.my

Website: www.mpob.gov.my

Malaysian Palm Oil Board (MPOB)

6 Persiaran Institusi

Bandar Baru Bangi

43000 Kajang

Selangor MALAYSIA