Sarawak Oil Palm Plantation Owners Association

(for SOPPOA Members only)

March 2016 Issue

Chief Executive Officer’s Message

Dear SOPPOA Members,

I am pleased to introduce this maiden issueof the SOPPOA E-Newsletter. This E-Newsletter will be emailed to all ourmembers to keep them informed on a regularbasis on the initiatives, programs and eventsorganised by SOPPOA or with relevantpartners or governmental agencies.

We will strive to improve the format and contents of this newslettergoing forward. Accordingly, members are most welcomed tocontribute articles, suggestions and feedback to SOPPOA so that wecan continuously improve to serve members better.

Thank you.

Yours SincerelySylvester Fong

• Following the workshop, MPOB researchers and SOPPOA participants had identified the following R&D projects to emphasize on, namely;

1. Agronomy issues, fertilizer recommendations and best management practices of oil palm cultivation on peat

2. Issues related to poor fruit set in both peat and mineral soils, and low oil extraction rate (OER)

3. Weevil population study, including relations between weather pattern and weevil population and cropping pattern

4. Insect pests especially termites and tirathaba problems, and their

MPOB Reinforces R & D Collaborations with SOPPOA Members (Update)MPOB Reinforces R & D Collaborations with SOPPOA Members (Update)

• SOPPOA and MPOB successfullyorganised a joint workshop on 10March 2016 entitled “Workshop toEnhance Productivity and Improveoverall Performances in PlantationManagement in the palm OilIndustry in Sarawak”

• Over 70 participants from all overthe State attended the workshop.

• A host of R&D issues such ascauses of poor fruit set, and pest anddiseases were deliberated with theaim to enhance the productivity ofSarawak oil palm industry, especiallyfor the member estates of SOPPOA.

• The following papers were presented and discussed:

�Keynote paper on upstream issues on the Sarawak oil palm industry and Research gaps to be covered by Chua Kian Hong of SOPB

�Fertilizer recommendation and best management on peat En HasnolOthman, MPOB

�Low fruit set and low OER issues in Sarawak by Dr Ramle Moslim, MPOB

�Insect pests on peat by Dr RamleMoslim, MPOB

�Rats Management, by Chung Gait Fee, Consultant

�Ganoderma and other diseases on peat planting by Dr Idris Abu Seman, MPOB

tirathaba problems, and their management

5. Rats management in palm oil estates, and

6. Control and management of ganoderma diseases and other diseases on oil palm.

• A small task force will be formed comprising members of MPOB research team and SOPPOA R&D Committee to prioritize the identified research projects for implementation. MPOB researchers will work with interested SOPPOA member-companies on these projects

• It is intended that research findings and knowledge gained from these R&D projects will be shared for the benefit of all SOPPOA members in Sarawak.

• MPOB research team met and had internal discussion on 31 March 2016 regarding the R & D projects with SOPPOA members. An action plan had been drawn up to move forward with the R&D projects in Sarawak. ◊

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• Installation of biogas trappingand methane avoidance facilities

All new mills and existing millsapplying for throughput expansionare required to comply with the newconditions for approval of thelicense. SOPPOA had objected tothe introduction of the facility dueto the fact that it is costlyinvestment, with the non-availabilityof sale of excess electricity generatedthrough biogas plants and that thisnew ruling impacts mainly mills inSarawak as majority of new millsand capacity expansions are inSarawak.

In view of the sizeable sum requiredfor the installation, SOPPOAappealed to MPOB for an exemptionfor Sarawak millers until such time

Ideally, feedbacks from SOPPOA’smember estates in the vicinityshould be sought and consideredbefore approval of DF licences forFFB collection centres.

• Concern of acute labour supplyshortage and high levy costs

It was also highlighted that Sarawakoil palm industry is still facing ashortage of manpower. It is a well-known fact that many locals shunmenial plantation works which theyregard as hard labour. ManySOPPOA’s member estates arecarrying out mechanisation of fieldworks such as FFB evacuation butmore time and efforts are needed todetermine the most effective andviable method due to thechallenging characteristics of ground

• Issues relating to High Carbon Stocks (HCS) study

This study was initiated by five majoroil palm growers together with Cargilland Unilever, to deepen commitmentson various aspects of sustainable palmoil. SOPPOA pointed out that thestudy which aims to establishthresholds for what constitute HCSforests, ought to take into account thelocal situation of the region where theHCS formula will be duly applied. Inother words, studies cannot beconfined to just one region as the HCSthreshold values derived from oneregion may differ from others. Inputsfrom regional stakeholders must betaken into account as they are theones who will be directly impacted.One way to do this is to set up a

A Dialogue session was also held between MPOB Director General,

Datuk Dr Choo Yuen May and SOPPOA participants at the end of the workshop where a number of

pertinent issues of concerns affecting the Sarawak oil palm industry were raised:

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for Sarawak millers until such timewhen a mechanism is in place for theexcess power generated to be sold toan offtaker (e.g., Sarawak Energy)based on a feed-in-tariff to beestablished. This is because withoutan offtaker or Power PurchaseAgreement, there’s no way Sarawakmillers can recoup the hugeinstallation cost, keeping in mindthat Sarawak palm oil industry iscomparatively young compared toour West Malaysian counterparts.

• Issuance of licenses forcollection centres (dealer FruitsLicenses)

There have been cases wherelicences have been issued foroperators to set up their collectioncentres in close proximity toSOPPOA’s member estates.SOPPOA appealed to MPOB toensure strict criteria are adhered toin issuing licences for collectioncentres to ensure that the interestsof SOPPOA members’ estates arealways safeguarded specifically withrespect to harvesting and sales ofFFB.

challenging characteristics of groundconditions. Since potential lossesarising from insufficient fieldworkers, especially harvesters, aresubstantial, undisrupted supply ofsuitable manpower withoutunjustifiable increase in levy iscritically important for the wellbeingof the whole industry.

• Intensification of R&D andinnovations needed to speed upmechanization of field workssuch as FFB evacuation andharvesting equipment

Director General MPOB informedthat a new incentive scheme underRMK-11 will be offered to estates thatare interested to implementmechanization. The incentive, inwhich the application procedure isstill being worked out by MPOB, willinvolve a 20% discount on the priceof the approved equipment andmachinery. The subsidy scheme isprimarily for FFB evacuationmachinery as well as for harvestingequipment, but excluding lorries andtractors.

One way to do this is to set up aregional committee consistingrepresentatives who have a stake inthe project. This is important in orderto ensure that the development ofnative customary rights (NCR) land inSarawak will not be curtailed by theimposition of any unfair criteria.

• Question raised on whether it is possible to have partial certification under MSPO for an estate wherein a small area of land is under dispute (e.g. A small area of the estate is claimed by natives)

MPOB had clarified that a partial certification is not allowable under MSPO standard.◊

A proposal was made to MPOBBoard of Directors for the lifting ofthe freeze for independent DealerFruits (DF) License Applications inSarawak.

On learning of this development,SOPPOA immediately on 17 March

2016 communicated with MPOBDirector General, Datuk Dr Chooand MPOB Board Secretariat torequest for the rejection of theproposed lifting of the said freeze onDF license application.

MPOB Director-General had

SOPPOA’s requested for rejection of proposed lifting of the freeze for independent Dealer Fruits (DF) License applications in Sarawak

MPOB – SOPPOA Workshop – on 10 March 2016

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MPOB Director-General hadresponded on 25 March 2016,

informed that the views of all MPOBBoard Members will be collected andpresented at the upcoming MPOBmeeting to be held on 21 April 2016

for a final decision to be made atthat meeting.

Visit of Mr Morten Thoroe from 25 to 29 July 2016Mr Morten Thoroe, a qualified Danish forester, will visitSarawak in connection with the writing of a technicaland scientific analysis on forestry and deforestation inMalaysia, especially Sarawak. The purpose of the reportis to address Environmental NGO’s allegation driving theno deforestation campaign and western perceptions ofgovernance problems in the forestry sector, particularlyin relation to indigenous groups and native land rights.

SOPPOA Advisor Paul Wong andspouse, Council Secretary Shannon Yiiand CEO Sylvester Fong attendedMEOA Annual General Meeting andAnnual Dinner including the launch ofMEOA’s Past President Datuk BoonWeng Siew’s biography project. - UncleBoon Remembers – A Pioneer MalaysianPlanter

Attended MEOA Annual General Meeting and Annual Dinner

List of Council Members and Office Bearers for Year 2015-2017

No Council Member Office Bearers

1 Datu Vasco Sabat Singkang Chairman

2 Tiong Chiong Ong 1st Vice Chairman

3 Dato’ Sri Law Kiu Kiong 2nd Vice Chairman

4 Shannon Yii Chong Hee Secretary

5 Dato’ Jin Kee Mou Treasurer

6 Dato’ Ha Tiung Noon Deputy Secretary

7 William Yii Hee Poh Deputy Treasurer

8 Tan Sri Datuk Lau Hieng Wui

9 Dato Wong Kuo Hea

10 Datu Dr Hj Sulaiman Hj Husaini

11 Patrick Wong Haw Yeong

12 Polik Bin Hamzah

13 Eric Kiu Kwong Seng

14 Wong Kai Song

15 Daniel Ding Huong Chen

JAKARTA: The Indonesiangovernment will test a Malaysianpeatland management method,called compaction, in a bid toprevent annual land and forest firesin peatland areas.

A local English newspaper, TheJakarta Post today quoted anEnvironment and Forestry Ministryofficial as saying that it would testthe method, introduced by LulieMeiling, the director of the TropicalPeat Research Laboratory inSarawak, Malaysia.

"We will try the method in WestKalimantan, North Sumatra, Riauand Palembang," said the ministry'sDirector of Forestry ProductResearch and Development Centre,Dwi Sudharto, as quoted by thenewspaper.

Dwi said the government wasstudying the effectiveness and

Industry News –Indonesia to test M'sianpeatland compaction method to prevent forest fires | article from The Sun Daily 2 Apr 2016

Advisors

Dato’ Ding Lian Cheon

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This SOPPOA E-Newsletter is circulated strictly to members only. On the reproduction of articles/works of others, permissions were obtained. SOPPOA shares with members; however SOPPOA takes no views or responsibilities on them.

studying the effectiveness andcompatibility of the method inIndonesia and would only try themethod in peatland that was not toovast.

According to Lulie, the method wasideal for Indonesia, which hadpeatland with high porosity, becauseit made the soil more solid,preventing it from losing waterquickly and making it much moreresistant to fire.

She said peatland in Sarawak rarelycaught fire, unlike in Indonesia,because of the compaction method,which had been used for a decade toboost the production of palm oilplantations in peatland areas inSarawak.

The Peatland Restoration Agency (BRG) is also considering using the land compaction method.

In October 2015, Malaysian PrimeMinister Datuk Seri Najib AbdulRazak had met Indonesian PresidentJoko Widodo (Jokowi) and raised theproblem of haze from Indonesiawhich had threatened the interestsof the people of Malaysia anddisrupted the economic, social andeducational activities.

During bilateral discussions, Najibsaid, Malaysia had stated itspreparedness to boost cooperationand offer Malaysian experts andmethods to overcome forest fires.

Last year, four months of forest firesin Indonesia resulted in serious hazein Malaysia and other neighbouringcountries, with Air Pollutant Indexreadings at very unhealthy levels andforcing the government to closeschools in several states in a move tosafeguard the health of students. —Bernama

Sarawak Oil Palm Plantation

Owners Association

Persatuan Pemilik-Pemilik

Ladang Kelapa Sawit Sarawak

(Nombor Pendaftaran

Pertubuhan 2081-08 SWK)

No 30, 2nd Floor, Travillion

Commercial Centre, 93100

Kuching, Sarawak, Malaysia.

Tel: +6082 236 872

Fax: +6082 236 873

Email: sylvesterfong@ymail.com

Dato’ Ding Lian Cheon

Dato Wong Kuo Hea

Paul Wong Hee Kwong