By DayakDaily Team
KUCHING, Aug 11: Sarawak is being urged to move beyond producing crude palm oil (CPO) and tap the higher-value opportunities in biodiesel, biomass, and phytonutrients.
According to a TVS news report, Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said Sarawak’s strong palm oil production base gives the State room to expand further along the downstream value chain.
She said palm oil and its by-products could be converted into higher-value products, including renewable energy and high-value phytonutrients.
“We need to move further along the value chain. Palm oil, palm biomass and renewable energy sources have the potential to be developed into higher-value products,” she said during a speech delivered by Malaysian Palm Oil Board (MPOB) chairman Datuk Mohamad Helmy Othman Basha at the National Seminar on Palm Oil Milling, Refining, Environment, and Quality 2026 (POMREQ 2026) here today.
Noraini said one of the efforts already underway is a collaboration between MPOB and Sarawak Oil Palms Berhad to develop multi-feedstock biodiesel plant technology.
The collaboration also involves the development of a phytonutrient extraction plant to produce high-value carotene and tocotrienol.
She said such initiatives are in line with the National Agrocommodity Policy 2021-2030 and the National Biomass Action Plan 2023-2030.
The policies aim to strengthen a circular economy based on palm oil by maximising the use of its products and by-products.
Sarawak also has experience in biodiesel use, with the B20 programme implemented throughout the State since September 2020, except in Bintulu.
“Biodiesel usage provides strategic value to the country. It helps reduce dependence on fossil fuels.
“At the same time, it creates greater opportunities for domestic use of palm oil. This is also in line with the aspirations of the National Energy Transition Roadmap (NETR),” she said.
At the national level, the government expanded the biodiesel blending programme through a nationwide B15 mandate for the transport sector, effective from June 1.
Meanwhile, the palm oil industry remains a major contributor to the economy, with the export value of palm oil and its derivatives reaching RM112.43 billion last year.
The average CPO price also rose from RM4,292.50 per tonne last year to RM4,466.50 per tonne in June this year.
With its strong production base and existing biodiesel experience, she said Sarawak is well placed to capture more value from its palm oil industry by expanding into higher-value downstream products. — DayakDaily
