Executive Focus: CEO, Malaysian Palm Oil Council

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Tan Sri Datuk Dr. Yusof Basiron is CEO of the Malaysian Palm Oil Council (MPOC), a not-for-profit organization that aims to promote the market expansion of Malaysian palm oil and palm oil products. He spoke with The Prospect Group about palm oil's contribution to Malaysia's economy, the opportunities for Malaysian palm oil as a raw material for bio-fuel, and the negative connotation that has been placed on the palm oil industry by various NGOs.

Malaysian Palm Oil Board: Organization

Organization

The members of the Board are appointed by the Minister of Plantation Industries and Commodities. It comprises of a Chairman, representatives from three ministries; Finance, Plantation Industries and Commodities, and International Trade and Industry; and also representatives from Federal Land Development Authority, National Association of Smallholders, Malaysian Estate Owners Association, Malaysian Palm Oil Association, Malaysian Edible Oil Manufacturers’ Association, Palm Oil Millers’ Association of Malaysia, Palm Oil Refiners’ Association of Malaysia, Malaysian Oleochemical Manufacturers Group, Sarawak State Government, Sabah State Government, East Malaysia Planters’ Association and the Director-General of MPOB.

The board is served by several committees in the areas of Research (Program Advisory), Finance & Development, Tenders, Establishment, Registration & Licensing and Audit.

The administration and management of MPOB is the responsibility of the Director-General, supported by a Deputy Director-General (Research & Development) and a Deputy Director-General (Services).

MPOB’s activities are divided into eight divisions headed by Directors. The divisions are Biological Research, Engineering & Processing Research, Advanced Oleochemical Technology, Product Development Research & Advisory Services, Economics & Industry Development, Finance, Management & Development, Information Technology & Corporate Services and Licensing & Enforcement.

Organizational Structure of MPOB

Malaysian Palm Oil Board: Function & Funding

 
Functions

• Implement policies and development programs to ensure the viability of the oil palm industry of Malaysia.
• Conduct and promote research and development activities relating to the oil palm industry.
• Regulate, register, co-ordinate and promote all activities relating to the oil palm industry.
• Develop, promote and commercialize research findings as well as provide technical, advisory and consultancy services to the oil palm industry.
• Develop and maintain markets for oil palm products as well as promote efficient marketing.
• Liaise and co-ordinate with other organizations inside or outside Malaysia to further enhance the oil palm industry of Malaysia.
• Plan and implement training programs and human resource development in line with the needs of the oil palm industry.
• Be the resource and information center of the oil palm industry including the publication and dissemination of information on oil palm as well as other oils and fats.

Funding

MPOB derives its funding mainly from cess imposed on the industry for every tonne of palm oil and palm kernel oil produced. In addition, MPOB receives budget allocations from the government to fund development projects and for approved research projects under the Intensification of Research in Priority Areas (IRPA) program. 

Malaysian Palm Oil Board: Vision, Mission, Strategies & Policy

Vision

To become the premier Nobel Laureate – producing research and development institution, providing leadership and impetus for the development of a highly diversified, value-added, globally competitive and sustainable oil palm industry.

Mission

To enhance the well-being of the Malaysian oil palm industry through research, development and excellent services.

Strategies

• Expand and improve the current uses of oil palm products.
• Find new uses for the products.
• Improve production efficiency and quality of products.
• Optimize land utilization in oil palm areas.
• Promote the use, consumption and marketability of oil palm.

Policy

• To adopt strong market and industry-oriented research and development programs.
• To aggressively undertake transfer of technologies and commercialization of research results.
• To forge and active partnership in technology development and utilization with the private and public sectors.
• To strengthen international linkages and research collaboration in selected areas.
• To promote global awareness, appreciation and demand for Malaysian oil palm and products.

Malaysian Palm Oil Board: Introduction & Operations

Introduction 

Malaysian Palm Oil Board (MPOB) is a premier government agency under the Ministry of Plantation Industries and Commodities, entrusted to serve the country’s oil palm industry. Its main role is to promote and develop national objectives, policies and priorities for the well-being of the Malaysian oil palm industry.

It was incorporated by an Act of Parliament (Act 582) and established on May 1, 2000, taking over, through a merger, the functions of the Palm Oil Research Institute of Malaysia (PORIM) and the Palm Oil Registration and Licensing Authority (PORLA). Each of these respective organizations has been involved in the oil palm industry for more than 20 years and it is to render more effective services as well as to give greater national and international focus to the industry that MPOB was instituted. 

Operations

The thrust of MPOB’s activities is on Research and Development (R&D). A whole spectrum of R&D work ranging from upstream production to downstream processing is carried out by the various research divisions and is also being supported by non-research divisions.