II. NATIONAL INSTITUTIONAL ARRANGEMENTS

[ II | II-A | II-B | II-C | II-D | II-E | II-F | II-G ]

C. Industry

[ C | C-1 | C-2 | C-3 ]

1. Palm oil industry

MPOPC was incorporated 25 January 1990, and assumed the responsibilities and activities previously undertaken by the Palm Oil Promotion Fund Committee. It is charged with spearheading the promotional and marketing activities of Malaysian palm oil in the efforts to make it the leading oil in the global oils and fats market. The Malaysian palm oil industry is committed to making Malaysian palm oil the world's leading vegetable oil; that task is made easier by the fact that Malaysia is already the focal point of the international oils and fats market.

The objectives of MPOPC are:

• To promote the positive image of Malaysian palm oil, in order to maximize returns to the Malaysian palm oil industry;
• To package and disseminate plausible technical information to influence the market;
• To generate comprehensive market information;
• To collate, analyse and disseminate market information to the local industry;
• To make MPOPC a recognized centre for information on palm oil;
• To facilitate new business and offshore joint ventures in palm oil;
• To build up an effective resource capacity for MPOPC to deliver.

The objective MPOPC mission is "to undertake necessary promotional activities to remove obstacles and create opportunities to enhance the marketability and image of Malaysian palm oil in the world". MPOPC establishes a positive image of Malaysian palm oil through seminars and workshops, exhibitions and conferences, educational and awareness programmes and trade missions. It also enhances the marketability of palm oil through the development of new and potential markets, while also sustaining the expansion of existing markets. It gathers market information through the continuing development of its market intelligence network, and by developing and strengthening market linkages as well as monitoring opportunities in offshore businesses and joint ventures.

MPOPC positions Malaysian palm oil as a natural and excellent choice through promotional materials such as publications, posters and videos, participation in international and local trade/consumer fairs and exhibitions. It provides opportunities for journalists and target groups to obtain accurate and positive perceptions of palm oil through various educational and familiarization programmes. It also develops special communication events to reach target audiences and shape positive public opinion.

MPOPC gathers, monitors and updates scientific and technical information on all aspects of palm oil nutrition, food and non-food products, and the environment. It develops strong linkages with relevant local and international scientific bodies. It obtains third party endorsements for scientific data on Malaysian palm oil through regional Nutritional Advisory Committees and the International Nutrition Advisory Council. Information on scientific and technical aspects of palm oil is disseminated through publications and during participation in conferences and forums.

PORIM was set up in 1979 to conduct research on, and development of, oil palm and its products. Its mission is to support the well-being of the palm oil industry in Malaysia through research, development and services. The mission is served by four main objectives:

• To expand and improve current uses of palm oil products;
• To find new uses;
• To improve production efficiency and quality of products;
• To promote the use, consumption and marketability of palm oil products.

PORIM carries out research on the biological aspects of oil palm cultivation in order to improve yield, reduce the cost of production and improve production efficiency. The areas of PORIM research in biology include: agronomy and soil fertility; entomology and mammalia; pathology and weed science; farm mechanization; biomass utilization; extraction; physiology; vegetative propagation; and biotechnology.

PORIM undertakes research into improving processing techniques and formulating new applications for palm oil, both in food and non-food products. The research activities in chemistry and technology embrace the analytical aspects of: physics and chemistry; nutrition; processing; engineering, technology and end-use aspects (both edible and non-edible) of palm oil, palm kernel oil and their products.

Techno-economics and technical advisory services are two complementary lines of activities. The techno-economic research activities can be categorized as: (a) production/agricultural, economic and market development studies; and (b) techno-economic feasibility studies of new technologies, new products and by-products. PORIM also helps in developing markets for palm oil by conducting technical promotion, providing a free technical advisory service and undertaking collaborative work in consuming countries.

The role of PORLA is to conduct inspection programmes on: (a) the quality of oil palm products at their strategic points of processing; and (b) trade, including ports of export, to ensure that only oil palm products with the appropriate quality are delivered. PORLA undertakes quality control activities, starting from planting materials to the final point of export of palm oil products. The quality of palm oil products may suffer damage at certain stages of processing, handling and transportation, and the inspection programmes are designed in such a way that PORLA inspectors are present to conduct quality inspections at the critical point of processing, handling and transportation.

The functions of PORLA in promoting and regulating quality practices in the palm oil industry are:

• To regulate and improve the manner of storing and shipping oil palm products;
• To promote efficient handling of oil palm products;
• To promote measures aimed at attaining a high level of quality in oil palm products, including the laying down of standards and the establishment of an efficient grading system;
• To generally to do everything possible for the betterment and proper conduct of the palm oil industry.

PORLA is empowered to discharge the above functions through:

• The registration and licensing of persons in respect of all activities within the scope of its Authority;
• The provision of standard practices to be observed or avoided in the palm oil industry;
• Specifying and defining the required standards and grades of oil palm products and bringing such standards and grades into effect, including provisions for or relating to labelling;
• Requiring records to be kept and returns to be submitted by licensees.

The Palm Oil Industry (Licensing) Regulations (Amendments) 1984 provide that any persons who move, sell, purchase, broker, export, import, store, survey or test any oil palm product must be licensed. In issuing a licence, PORLA imposes conditions and restrictions in order to regulate trade and promote quality practices, in order to ensure all products or services are of the highest quality.

Top