PLANTATION and Commodities Minister Datuk Seri Johari Abdul Ghani has urged the commodities sector to reclaim the country's edge in the global markets following threats faced by the impending United States (US) import tariffs.
Malaysia had led the world in palm oil, rubber and cocoa, and now, although it still a big player for palm oil, it has lost out on natural rubber exports and cocoa, he said, lamenting that it may get tougher with US tariffs causing unease in the global markets.
To overcome the present challenges, Johari said that commodities and plantations owners must revive the eco-system (interconnected system) surrounding their respective commercial plants.
"We lost out because our eco-system in the past had dissipated due to the series of missteps we undertook," Johari said at the staff appreciation luncheon of the National Kenaf and Tobacco Board (LKTN) at the Hotel Renai in Penang.
Citing figures, Johari, who is an Umno vice - president, said that Malaysia exported around RM100 billion worth of palm oil and its byproducts in the past years.
It is because there exist a strong eco - system where the raw product is distributed to oleochemical plants and refineries to be processed into downstream products and in turn exported to the global markets.
Despite that, Johari said that the country is now a nett importer of palm oil as there is a need to meet the growing demand for it.
However, the existing eco-system is no longer viable for natural rubber and cocoa, so it is then logical why the country has slipped down the rungs in exporting such valuable commodities, which in the past had enriched the nation, said Johari.
For natural rubber from being the world's top exporter, Malaysia is now a nett importer of latex too, dropping down to number 10 in terms of exporting the commodity.
To avoid similar pitfalls, Johari urged the LKTN to learn from the past mistakes such as the decision to do away with tobacco farming just because the World Health Organisation (WHO) had signalled smoking as a public healthcare concern.
What the WHO meant was to confine the growing of tobacco to the present number and not expand, said Johari.
"What happened instead was a move to eradicate tobacco farming and a payout of about RM100 million in compensation to the affected farmers."
This has impeded the industry and with the slow take-up rate of kenaf, there was a proposal to merge the LKTN with other entities such as logging or rubber.
But Johari believed that LKTN has a future as kenaf in essence is a sustainable plant with many downstream products to unearth, said Johari.
To ensure that kenaf can grow to become a major commodity, Johari said that there is a need to produce its own eco-system.
There is a need to value-add the products that kenaf produces from its fibre to pharmaceuticals to mattresses and pillows.
He also wants LKTN to become more of a regulator rather than the producer of kenaf because it is a role best suited for the board.
The growing and cultivation of kenaf should be borne by farmers and entrepreneurs. - April 28, 2025.
