KUALA LUMPUR, Oct 19 — The allocation for the Plantation and Commodities Ministry (KPK) was increased to RM732.7 million in Budget 2024 after taking into consideration feedback from the industry, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

Fadillah, who is also Plantation and Commodities Minister, said the allocation will be channelled towards the management and development of all commodities under KPK’s purview, including palm oil, rubber, timber, kenaf, cocoa and pepper.

"Among the areas of focus is obviously related to the new economy as prescribed in the budget, biomass — how to use the country’s recyclable wastes to generate revenue for businesses and the nation.

"In that context, our focus is on achieving higher, more efficient production through technology and innovation; and ultimately, our downstream products will become better and can penetrate the global market,” he said during Bernama TV’s Ruang Bicara programme on "Economic Reforms Empower the People” last night.

Fadillah said KPK’s main focus at present includes conducting missions to expand the market for the country’s commodities in view of global challenges such as the introduction of new regulations by the European Union (EU) and protectionism by competitors in the United States.

"We have to work to ensure compliance with international standards and regulations so that we can market and distribute our products widely overseas,” he said.

Fadillah said his ministry will also focus on educating oil palm smallholders on best agricultural practices.

"Our challenge is there are many mature oil palm trees, so we had requested for replanting allocation under Budget 2024 specifically for smallholders.

"Through the RM100 million allocation approved for the Palm Replanting Programme Incentive, we hope palm trees can be replanted to produce fruits that can be better processed, and this will no doubt help the smallholders,” he added.

On the second meeting of the Ad Hoc Joint Task Force (JTF) to be held in Malaysia in December, Fadillah said through the JTF, Malaysia hopes EU representatives will take into account the palm oil producers’ views when they implement or enforce EUDR-related rules or legislation. — Bernama