Dr. Jan-Kees Vis,
President,
Roundtable on Sustainable Palm Oil (RSPO),
Mr Teoh Cheng Hai,
Chairman,
RT5 Organising Committee,
Distinguished Guests, Ladies and Gentlemen,
A very good morning to all of you.
I am indeed delighted to be here today to address representatives of the palm oil supply chain, who include planters, processors as well as relevant stakeholders. I also like to take this opportunity to welcome all delegates, including those from overseas who have taken time off to be here in Kuala Lumpur to attend this round of meetings. No doubt your presence here is testimony of the importance of the oil palm industry as well as this meeting itself.
I was told that this is the second time that the RSPO meeting is being held in Kuala Lumpur; the first meeting, commonly known as RT1 amongst the fraternity, was held in August 2003. RT5 this time around is significant as it will set the stage for the production and trade in certified sustainable palm oil.
The progress achieved by RSPO is indeed laudable and I believe this is largely due to the multi-stakeholders approach pursued by the RSPO and would like to congratulate the RSPO Executive Board and its members for this achievement by bringing on board all the relevant stakeholders. I was told there were 530 participants from 28 countries who were present in this meeting with the majority of these participants coming from Malaysia and Indonesia (63%), the two most significant producers of palm oil in the world. I am told that in terms of participation by sectors, the oil palm-growers, processors and traders make up the majority accounting for 55% of all participants. No doubt these significant figures augurs well for those who are committed to the palm oil industry on the long haul basis.
Distinguished Guests, Ladies and Gentlemen,
The palm oil industry has been a significant driver in the economic development of Malaysia ever since it was introduced as a means to eradicate poverty in the sixties and seventies. The industry has come a long way since then and established itself in the international oil and fats business. In 2006 Malaysia exported some 14.4 million tonnes of palm oil, accounting for slightly more than 50% of the global oils and fats trade.
But it has to be said that this long road towards success is littered with numerous trials and tribulations. As an example, the industry was faced with a negative campaign that labeled the oil as being unhealthy and contributes towards cardiovascular diseases. The industry had fought a long and difficult battle to disprove this rather dubious claim by competing oils. Researchers have proven that palm oil is the better oil from the health point of view as it does not need hydrogenation for margarine production that results in the production of trans fatty acids which are now acknowledged as being harmful for human nutrition.
The challenge for the palm oil industry is now focused on sustainability issues. The industry has been under sustained attacks from the NGOs and environmentalists for all sorts of sins against the environement and Mother Earth herself. These allegations include forest destruction, orang-utans and other wildlife displacement, loss of diversity as wells as indiscriminate development of peat areas, resulting in carbon emissions and thereby contributing to global warming. These unsubstantiated allegations have been and are still being hurled at the industry without taking into considerations that giant steps have been taken to address these environmental issues. It has to be said that large scale commercial agriculture have been and are still being carried out in many temperate as well as tropical countries around the globe without being subjected to such allegations and accusations. I find it rather incomprehensible that the palm oil industry should be scrutinized so microscopically and I am told that palm oil maybe barred from entry into certain consuming countries unless certain strict conditions are complied with. What ever happened to WTO and the noble precept of free trade to even-off the gap between the rich and the poor nations of this world?
Distinguished Guests, Ladies and Gentlemen,
Lest I begin to sound like an activist for free world trade, I must come back to the subject matter of the RT5. RSPO, which started as a business to business initiative, has evolved into a multi-stakeholder platform since 2004. I am glad to note its progress towards promoting the development of sustainable palm oil and I have on previous occasions said that the Government on its part will continue to encourage the industry to respond to the emerging requirements of the market and its stakeholders with regards to sustainability. I am also glad to note that by and large, the industry has responded well since many have participated actively in the pilot project on the implementation of the principles and criteria. The industry itself is developing suitable and appropriate guidelines for the implementation of the criteria through the National Interpretation Working Group.
Here I would like to point out one obvious and fundamental fact which may at times be clouded by various arguments and that is the need to provide a good balance between taking care of the planet’s and its inhabitants’ needs on the one hand and the need for economic sustainability for the producers on the other hand. The costs of doing business under the “new order” as envisaged by the RSPO criteria must be taken into consideration at all times and I do not think you can escape from this reality. Here what is deemed to be necessary costs by some may be too burdensome by others as the costs are as varied as there are producers from different regions within the same country as there are located in different countries. But I will leave it to the producers who are members of the RSPO to ponder.
Still it is my duty to flag this particular point on behalf of the many thousands, nay hundreds of thousands who are growing oil palms as small-holders in this country today. It is my opinion that these farmers, particularly the rural and uneducated who own small plots of oil palm to earn enough to keep the family happy, will find it almost impossible to meet the standards required by the RSPO criteria. I am worried for them and in particular their total contribution to the country’s output is significant, both politically as well as economically. Those of you who are aware of the history of the oil palm industry will know that it has its beginning with these farmers being persuaded to plant and participate in the industry. My Ministry has been looking after their welfare and it will continue to do so. Going forward from the present RT5, it is my submission that these farmers must be enabled and be provided with the skills and knowledge to comply with the criteria. I will need answers from the RSPO on this point that I am flagging.
Distinguished Guest, Ladies and Gentlemen,
Notwithstanding the progress made, I must say that not all the membership sectors in the RSPO are responding in the same spirit as the producers, in particular the NGOs. While responsible NGOs such as the WWF are working within the RSPO framework, yet their counterparts who are outside continue to protest against the industry, citing amongst others the industry being the primary reason for forest destruction and social conflicts involving indigenous people. These groups demand a moratorium on oil palm development. Unfortunately, many of these arguments are often driven by emotions rather than facts. Using these arguments, they often managed to pressure the rest of the supply chain towards giving support through the adoption of negative policies, as being the case with some major retailers in the United Kingdom. Such actions are not only unreasonable but lack the very element of compassion which ought to be shown by consumers in the countries such as the United Kingdom. Also such actions are not within the spirit and framework of the RSPO.
In view of the continued campaigns by the NGOs, my Ministry has adopted a two pronged approach to address this position. Firstly, we would like to correct the misperception on the sustainability of palm oil. We have earmarked on disseminating information through amongst others, major channels in Europe, publications on palm oil and websites. I also saw the greater need for direct engagement with the law makers in Europe and it was in June this year that I lead a mission to discuss with the European Ministers and Parliamentarians on our efforts towards sustainable production of palm oil. I must say the Europeans are most appreciative of the effort and the information imparted to them. Everywhere I went I took it upon myself to invite the decision makers to visit Malaysia and her plantations to satisfy themselves on whether palm oil is already sustainably produced.
I like to categorically say here that Malaysia is committed to support further work, in particular in the areas of conservation and addressing concerns on green house gas release in the development of the palm oil industry. Our commitment is underscored by the fact that we have established the Malaysian Palm Oil Wildlife Conservation Fund, with an initial allocation of RM20 million. In response to the concern over the development of oil palm in peat areas, Malaysia is now establishing the Tropical Peat Institute which will co-ordinate work on developing peat areas for possible planting of palm oil. The Institute will also do R & D work in this field as hardly any scientific investigations have been made in tropical peat areas until now. I am particularly happy that the Netherlands and Malaysia have agreed to establish a Joint Committee to address carbon release in peat areas it is hoped this collaboration will also help to establish a best practice with regards to peat areas in Malaysia
Distinguished Guest, Ladies and Gentlemen,
RSPO is a business to business initiative and should remain rightly so in order to spearhead the way forward for the industry. I would like to urge all growers to implement the RSPO principles and criteria for sustainable palm oil production diligently. For the rest of the supply chain, they have the responsibility to support the growers in their efforts to produce sustainable palm oil. I also like to urge the NGOs to always play a constructive role on the path towards sustainable production of palm oil. They need to work in tandem with the industry and to support practices that are practical to ensure adequate and unfettered supply of sustainable palm oil to satisfy the ever growing demand for palm oil due to its versatility.
To RSPO and its management committee, in particular to the Organising Chairman of the RT5, I thank you for inviting me to speak this morning. I do hope all delegates and observers had a fruitful deliberation and conference. More importantly, I do hope we will always be able to work together going into the future in developing the palm oil trade and to bring it to greater heights to benefit mankind and the world.
Thank you.
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