New Palm Biomass Market Mechanism May Be Considered – KPK

KUALA LUMPUR, Aug 26 (Bernama) -- The need for a new market mechanism to support palm biomass processing as a commercial product may be considered in the future, according to the Ministry of Plantation and Commodities (KPK).

Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said palm biomass activities are already actively conducted through business-to-business (B2B) models involving industry players, technology providers, domestic buyers and export markets.

These include the processing of empty fruit bunches (EFB), palm oil mill effluent (POME), palm kernel shell (PKS) and other by-products.

“KPK continues to monitor industry developments and is prepared to reassess policy requirements and potential government intervention should there be a pressing need to strengthen the value chain or open new markets,” Chan told the Dewan Rakyat during question time.

He was responding to a query from Jamaludin Yahya (PN-Pasir Salak) on whether KPK planned to create a market mechanism to support palm waste processing as a commercial product to strengthen the agro-commodity ecosystem.

Chan said with inclusive approaches and continued support from stakeholders, the biomass industry would remain a key driver in strengthening Malaysia’s agro-commodity ecosystem and contribute to green and low-carbon economic development goals.

He said the palm biomass industry has already shown positive growth, supported by rising demand.

“Demand is driven mainly by renewable energy generation, organic fertiliser production, bio-pellets, biochar, pulp, paper and green chemicals,” he said.

“Several local firms have successfully commercialised palm biomass and developed new value-added products, creating economic returns not only for mill owners but also for smallholders and local entrepreneurs.”

Chan said KPK’s role is focused on facilitation, policy coordination and creating a supportive ecosystem, including through the National Biomass Action Plan 2030 (PTBN2030).

“The plan provides a strategic direction for developing the biomass industry in a more structured, sustainable and competitive manner through policy alignment, infrastructure improvements, investment incentives, research and development, and stronger collaboration between federal and state governments, local authorities and industry players,” he added.

-- BERNAMA