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Palm Oil Sector to Gain from Johari’s Cabinet Appointment

Industry bodies are bullish on Johari Ghani’s appointment as plantation and commodities minister.

Johari Ghani is expected to improve the agricultural sector’s governance and practices, said palm oil industry players.

Palm oil industry players have welcomed Johari Ghani’s appointment as plantation and commodities minister following yesterday’s Cabinet reshuffle and expect him to improve the agricultural sector’s governance and practices.

Malaysian Palm Oil Board (MPOB) director-general Ahmad Parveez Ghulam Kadir said Johari is an experienced corporate figure and as a former finance minister II, he has “national administration experience”.

“Among the challenges he may face are issues such as the European Union Deforestation Regulation (EUDR), labor shortages, rising costs, low smallholder yields, and slow replanting,” he told Bernama.

Ahmad Parveez said smallholder issues need to be addressed by the new minister because they operate individually with limited capacity and need government help.

“With his experience in the corporate sector, Johari may be able to help us strengthen the smallholders so that we can achieve an optimal economic level for them,” he said.

He also said the palm oil industry is facing a labor shortage and insufficient local workers.

“Therefore, we hope his experience can help us in our efforts to use technology such as the mechanization and automation research consortium of oil palm (MARCOP) which focuses on the latest technology within the fourth industrial revolution (IR 4.0) framework.

“MARCOP is able to attract more young people to join this industry,” he added.

Ahmad Parveez also expressed hope the new minister, who is also the Titiwangsa MP and Umno vice-president, will hold dialogue sessions frequently with industry stakeholders.

“We hope he can maintain this culture. By involving industry players, we can sit together in an engagement process to understand the challenges faced by the industry.

“This engagement with all stakeholders will strengthen and facilitate the resolution of issues in the industry,” he said.

Ahmad Parveez also thanked the previous minister, Fadillah Yusof, and welcomed Johari as the new minister.

“We in the industry and at MPOB are always open to working with him and will provide full support for the development of the industry,” he added.

Meanwhile, Malaysian Palm Oil Council chairman Carl Bek-Nielsen said he is “very positive” about the appointment.

“Johari possesses a strong background in finance and is known for his meticulousness, sharp judgment and decision-making ability. We intend to collaborate closely with him,” he said.

On the challenges, Bek-Nielsen said there is a need for initiatives aimed at reversing declining national yield trend.

“This is vital to ensure the long-term economic viability of our industry.

“We must continue efforts to keep trade channels open and convey an important message to the world – that when it comes to quality and sustainability, Malaysian palm oil is at the top of the class and sets the gold standard,” he added.


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