Soppoa cries foul over lack of representation in key bodies

KUCHING: Keeping Sarawak Oil Palm Plantations Owners Association ( Soppoa) out of the Malaysian Palm Oil Board ( MPOB) and Malaysian Palm Oil Council ( MPOC) for the 2020- 2022 term will not bring any benefit to the plantations in Sarawak or Malaysia.

The fully- integrated oil palm plantations and farmers of Sarawak account for almost 30 per cent of the total oil palm planted land hectarage in Malaysia and over 58 per cent, if combined with Sabah, but there is no significant presence of representatives from the planting associations in Sarawak and Sabah in the two key decision- making boards for this sector, said Soppoa in a statement issued yesterday.

“This will render the MPOB and MPOC, although appear filled up with council members but in reality, not fully represented in the absence of the established plantation associations from East Malaysia and lacking judicial stakeholder’s quorum for important decision- making for the country’s second biggest economy and revenue for the government,” said Soppoa.

Plantations in Peninsular Malaysia only account for less than 50 per cent of estates, mills and refineries – yet their representatives have been appointed to all these councils’ seats along with some individuals, clearly eliminating the sizable East Malaysian plantations’ representation.

It is also widely known that oil palms grown in Sarawak, the growth frontier of the palm oil industry in Malaysia, perform differently from others states due to its low yields, low OER, pests and diseases, nutrition, peat soil, planting materials, rough terrains, high rainfalls and logistics issues.

A voice from Sarawak in these councils would be pertinent and timely to address the key issues affecting growth and sustainability of the industry in Sarawak, said the association.

Soppoa pointed out that MPOB cess, government duties, levies and taxes from the palm oil industry in Sarawak were efficiently collected without delay, but several appeals to the authorities for representatives in these boards had not been responded to in good faith.

“Soppoa is still waiting to be allocated seats in MPOB and MPOC councils, which previously were provided by the federal government in 20122018, as inclusive councils.”

“Soppoa, still a strong partner of MPOC and its agencies and being the main oil palm plantation association in Sarawak, is one of the major contributors to the government’s revenue, running into hundreds of millions of ringgit a year even during the current Covid- 19 pandemic, is much aggrieved by such unreasonable omissions to these boards.”

“Until and when this major grievance is rectified, there may even be a need for this disparity to be further addressed to the honourable Prime Minister of Malaysia for his guidance.

“The other alternative left is for Soppoa to propose to the state government to form Sarawak’s own ( palm oil) board with similar roles and support functions, and utilising Ministry of Finance’s financial resources collected from duties, taxes, cess and levies contributed by Sarawak palm oil industry – if no further developments are being made in relation to the appointment of representatives to the MPOB, MPOC Boards,” said Soppoa.