PUTRAJAYA: Malaysia raked in RM121.99 billion from plantation commodity exports last year, thanks to slight improvement in the average pricing of palm oil, rubber and cocoa.
“Last year’s achievement was 4.2 per cent better than RM117.10 billion in 2015,” said Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong in a telephone interview recently.
“It augurs well for our economy,” he said, adding that the best-ever performance was in 2011, with a total plantation commodity exports of RM141.41 billion.
Malaysia’s plantation-based commodities comprise palm oil, rubber, timber, cocoa, tobacco and pepper.
Apart from manufacturing and tourism, plantation commodity is also a major contributor to the economy.
He highlighted that the plantation industry’s value add to the country’s economy was quite significant, considering it did not incur that much imports as seen in the electronics and electrical sector.
Also, the plantation industry harbours considerable political influence and significance.
Mah said more than half of the country’s 222 constituencies were populated by small farmers cultivating pepper vines, kenaf, oil palms, coconut, rubber, acacia, cocoa trees on their land.
Farmers’ political and economic interests and contribution to Malaysia’s economy will continue to be upheld as their produce continue to be value added via manufacturing, trading and branding activities.
This year, he said his ministry’s portfolio had expanded to include coconut exports, which was mainly processed for use in the oleochemical industry.
In giving a breakdown, Mah said palm oil earnings of RM67.58 billion made up the bulk of the country’s plantation commodity exports last year.
Improvement in palm oil prices had contributed to slightly higher exports towards the end of last year.
Last year, palm oil prices averaged at around RM2,600 a tonne, higher than RM2,200 per tonne in 2015.
He said last year’s most improved performer was the cocoa sector, which is predominantly made into chocolate.
Cocoa exports jumped 14 per cent to RM5.74 billion from RM5.03 billion in 2015, thanks to good cocoa pricing.
On the other hand, pepper exports, which posted very good RM513.87 million performance in 2015, fell 4.6 per cent to RM490.17 million last year.
Pepper cultivation, which is labour intensive, is mainly grown in Sarawak.