KUALA LUMPUR: The government may consider establishing a new market mechanism to support palm biomass processing as a commercial product in the future.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin confirmed that palm biomass activities are already actively conducted through business-to-business models involving various industry stakeholders.
“These include the processing of empty fruit bunches (EFB), palm oil mill effluent (POME), palm kernel shell (PKS) and other by-products,” he told the Dewan Rakyat during question time.
Chan was responding to a query from Jamaludin Yahya (PN-Pasir Salak) regarding market mechanisms for palm waste processing.
“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,” he added.
The deputy minister emphasised that with inclusive approaches and continued support from stakeholders, the biomass industry would remain a key driver in strengthening Malaysia’s agro-commodity ecosystem.
He highlighted how the industry contributes significantly to green and low-carbon economic development goals through various applications.
“Demand is driven mainly by renewable energy generation, organic fertiliser production, bio-pellets, biochar, pulp, paper and green chemicals,” Chan explained.
Several local firms have successfully commercialised palm biomass and developed new value-added products, creating economic returns for multiple stakeholders.
Chan outlined KPK’s role as focused on facilitation, policy coordination and creating a supportive ecosystem through strategic initiatives.
“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 concluded. – Bernama
