KUALA LUMPUR: Enforcement officers from the Malaysian Palm Oil Board (MPOB) will begin surprise checks on palm fruit harvesting companies from early 2025, says Datuk Seri Johari Abdul Ghani.
The Plantation Industries and Commodities Minister said the objective of these checks is to ensure the accuracy of weighing scales to safeguard the interests of smallholders.
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Johari said that this initiative is also in line with efforts to address complaints from smallholders regarding the manipulation of weighing scales.
He emphasised that all weights must be transparent, supported by a receipt detailing the total weight, tonnage, and actual oil extraction rate (OER), as mandated by the ministry.
"From 2025 onwards, I have directed the MPOB to require palm oil buyers or 'dealers' to correct their weighing scales. There should be no more complaints from smallholders about inaccurate weighing equipment," he said.
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Johari further expressed that any violation of these procedures could result in the non-renewal of licences issued to "dealers".
He made these remarks to the press after officiating at the 26th annual general meeting of the Association of Malaysian Traders and Entrepreneurs (Perdasama) on Saturday (Dec 28).
In line with these new regulations, Johari stressed that traders purchasing palm oil must ensure the accuracy of the weighing equipment used to avoid the risk of fraud.
Discussing the performance of Malaysia's palm oil commodity, Johari suggested that sustainability should be prioritised alongside increasing production.
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He noted that as the second-largest exporter of palm oil, Malaysia needs to strive to remain competitive by enhancing production.
"Whether it's palm oil, rubber, soybeans, sunflowers, wheat, or cocoa, all are determined by supply and demand aspects. When supply exceeds demand, prices will fall and demand outstripping supply will cause prices to rise.”
In response to the potential impact of President-elect Donald Trump stance on the palm oil sector, Johari said the ministry will first examine the official action plan to be implemented by the US leader after his official inauguration next month. – Bernama
