KUALA LUMPUR: The Government will implement the B10 biodiesel program for the transportation sector and B7 for the industrial sector in 2019 to drive the demand for palm oil and increase the sustainability of energy resources.
B10 Biodiesel is produced from a mix of 10% esters methyl palm oil and 90% diesel.
“In addition, to raise the sustainability and export competitiveness of our palm oil industry, the Government will allocate RM30mil to assist smallholders to obtain the Malaysian Sustainable Palm Oil (MSPO) certification,” Finance Minister Lim Guan Eng said in his Budget 2019 speech.
Meanwhile, the Government will also increase the use of local rubber as a composite material for the construction of roads in Malaysia to increase durability while at the same time reducing maintenance cost.
“To assist smallholders, the Government targets the use of Cuplumb Modified Bitumen (CMB) to build roads at ports and industrial areas in stages. The Government will allocate RM100mil for this purpose,” Lim said, adding that Government will continue to provide Rubber Production Incentive with an allocation of RM50mil to protect the effects of the fall in rubber prices for smallholders.
The smallholders would receive supplement income from the fund when rubber prices fall below RM2.20 per kilogram.
For the agricultural sector, the Government will allocate
• RM47mil for Research and Development to increase the productivity of our seeds, grains and fruits;
• RM18mil to incentivise the automation of the agrofood industry; and
• RM52mil to implement agricultural and agrofood industry, as well as entrepreneurship training for youths.
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