Plantation players ask govt to allocate funds for biodiesel subsidies

PUTRAJAYA: The latest addition to the plantation industry players’ Budget 2019 wish list is for the government to allocate funds for palm oil-based biodiesel subsidies.

Other “regular” proposals for the upcoming budget include the imposition of higher import duties on other vegetable oils, higher capital allowance for mechanisation in the oil palm estates, biogas, automation as well as incentives for replanting activities and for rubber smallholders to boost their income.

According to Primary Industries Minister Teresa Kok, 119 proposals were received from the industry stakeholders for Budget 2019.

“The ministry will study and deliberate on these proposals, which will then be forwarded to the Finance Ministry for consideration in the upcoming budget.

“Some of the proposals are workable and can be implemented. We will also have an inter-ministry engagement prior to any announcements to be made,” Kok told a media briefing after a closed-door Budget 2019 consultation session with industry stakeholders at her office here yesterday.

A total of 180 stakeholders were present at the consultation session including Malaysian Palm Oil Association, Malaysian Biodiesel Association (MBA), Malaysian Palm Oil Board, Malaysian Palm Oil Council, Palm Oil Refiners Association of Malaysia, National Association of Smallholders Malaysia, Malaysian Rubber Glove Manufacturers Association and Malaysian Rubber Products Manufacturers Association.

The new government is expected to table the upcoming budget in Parliament on Nov 2 this year.

For MBA, it has proposed for funds for biodiesel subsidies under Budget 2019.

Kok pointed out that “the ministry is in talks with various parties involved such as automobile, transportation and petroleum companies.

“Local biodiesel players have to give the ministry a bit of time (to finalise) because not everyone agrees with the idea.”

Indonesia is looking to introduce B30 biodiesel next year, while Malaysia only has B7 biodiesel but planning to re-activate its stalled B10 biodiesel mandate in the near future.

Other growing concerns among stakeholders include the labour shortage issue as well as the delay in the goods and services tax refunds by Customs Department, added Kok.