Plantation sector crucial to global food, health security — Analysts
KUCHING: The palm oil sector holds more than 50 per cent market share in the global vegetable oils trade and hence, its continuous availability is crucial to global food security as well as health security, the research team at Maybank Investment Bank Bhd (Maybank IB Research) highlighted.
In its report on the environmental, social and governance (ESG) aspect of Malaysia’s plantation sector, the research team pointed out that the sector has played its part in ensuring food security, job security, and health security not just for the nation but the world over.
“Throughout the pandemic, palm oil exports never stopped as the government allowed palm oil cultivation to proceed.
“Besides food use, the continuous availability of palm oil and palm products also meant there was the much needed ingredients to make personal cares and cleaning products such hand wash, soap, laundry detergents, hand sanitisers, etc that the world desperately needed in its fight against the highly infectious Covid-19 virus,” Maybank IB Research said.
Aside from that, it pointed out that between 2020 and 2023, the plantation sector has contributed approximately RM6.1 billion in windfall profit levy, RM3.7 billion in export duties, RM1.3 billion in MPOB CESS, RM0.2 billion in Prosperity Taxes, more than RM6 billion in Sabah and Sarawak Sales Taxes (based on its back-of-the-envelope estimates), and more than RM6 billion in corporate income taxes and individual taxes (by the smallholders) to the Malaysian government.
“The sector is said to be among the highest tax contributor in terms of total taxes (including windfall profit levy, export duties, CESS, and Sabah and Sarawak Sales Taxes, in addition to corporate taxes).
“Monies collected by the government were channelled to (among others) nation building and running of many social programmes including free Covid vaccinations given to the people and cash handouts given to the needy during the pandemic,” it added.
All in, the research team said: “Despite rising cost challenges and falling output, the sector still made huge monetary contribution of more than RM23 billion over the past four years in various forms of direct and indirect taxes, and contributions.”