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Palm Oil Industrial Cluster (POIC): www.poic.com.my
http://en.wikipedia.org/wiki/Lahad_Datu
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The first oil palm plantation in Malaysia was set up in 1917. Since then the palm oil industry has grown to become the largest producer and exporter of palm oil in the world, accounting for 52 percent of world production and 64 percent of world exports in 1997. The Malaysian oil palm industry is sustaining
its performance in 2003 after staging a significant recovery in 2002 despite a
weak global economy. Palm oil & palm oil-based products is Malaysia's
second Largest export revenue, with a total value of RM20.8 billion
(US$5.47 billion) during the first nine months of 2003, accounting for 7.6 per
cent of total exports of RM271.5 billion. |
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Palm Oil Research Institute of Malaysia (PORIM). Scientific and managerial aspects contributing to the success of the crop include the significant genetic improvements and production of high quality planting materials, the development and application of finely-tuned agronomic practices, the appropriate scale and efficient organisation of oil palm plantations and the continuous Research and Devalopment and good infra-structural support provided in country. PORIM - Palm Oil Research Institute Malaysia (PORIM), established by law in 1979, is funded mainly from a research tax from palm oil millers, which brings in 70 million ringitts every year. The Malaysian Board of PORIM includes representatives from the palm oil industry and the government, is advised on the research programmes of the institute by a Programme Advisory Committee formed by experts in their own fields. |
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DXN buying POIC (Palm Oil Industrial Cluster) land for biodiesel venture DXN Holdings Bhd is buying 240ha of 99-year leasehold land in Lahad Datu, Sabah, for RM10.45 million for its biodiesel venture. DXN said on Nov 6 2006 that its unit DXN Oleochemicals Sdn Bhd the land from POIC Sabah Sdn Bhd. for building a biodiesel plant and processing of oleo chemical products and refinery. DXN Holdings Bhd expected the venture to contribute positively to the financial performance of DXN Group once it commences the operation activities. DXN Oleochemicals Sdn Bhd DXN Oleochemicals Sdn Bhd is a subsidiary of DXN Holdings Bhd, a listed company on the Main Board of Bursa Malaysia. DXN group has 21 subsidiaries and one associate company. DXN Oleochemicals Sdn Bhd's project in POIC Lahad Datu is an expansion from its Kuantan (Pahang) project under DXN Biofuels Sdn Bhd. This Kuantan project has an initial capacity of 200,000 metric tones per annum and is expected to start operation in October 2007. It will be expanded to double its annual production in the following year. At POIC Lahad Datu, DXN Oleochemicals Sdn Bhd's plan is to put up two biodiesel plants with annual capacity of 400,000 MT and 500,000 MT respectively. The first-phase production is estimated to be 200,000 MT per year. DXN Oleochemicals' projects in POIC Lahad Datu is estimated to cost USD127 million. Combined with its Kuantan facilities, the DXN Group expects to be one of the largest biodiesel producers in the Asian region in the next four years with an annual capacity of 800,000MT. DXN expects to exports its biodiesel to Germany and the United States. Plans are afoot to acquire land in Germany to build a tank farm to store and distribute Malaysian-made biodiesel. |
POIC Palm Oil
Utilisation Chart
Graph of
production of biodiesel from Oil Palm Tree
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Malaysian Palm Oil Biodiesel Export Market: Malaysian Government plans to invest RM120 million in three joint-venture biodiesel plants, through the Malaysian Palm Oil Board (MPOB). The plants will produce 180,000 tones of biodiesel every year. The Malaysian Industrial Development Authority (MIDA) has approved nine biodiesel plant licenses, mostly in Peninsular Malaysia. The investors included those from Italy and Singapore. German train operator, Prignitzer Eisenbahn (PE) Arriva AG is working with MPOB on the use of oil palm biodiesel to run trains in Germany. About 35 tones of Malaysian palm biodiesel have been shipped to the German company. According to reports, the trial run in September 2005 had been promising and Prignitzer had ordered 100 tones more palm biodiesel from Malaysia. Malaysia is the largest producer of palm oil in the world. Palm oil is also cheaper as raw material for biodiesel and is the most abundantly produced vegetable oil in the world. biodiesel will be future source of alternative energy Future transport mode will be biodiesel vehicles Diesel and biodiesel are cheaper, providing 30% more mileage per liter compared with gasoline. Diesel and biodiesel cannot be replaced, based on current technologies, as many heavy-duty vehicles like trucks, buses and tractors require the pulling power/ torque to haul such heavy loads and petrol/ ethanol cannot provide such power as cheap as diesel/biodiesel. Ultra low sulphur diesels (ULSD) is more environmentally friendly than petrol and works better blended with biodiesel. Currently biodiesel and ULSD blend are the most favored fuel in Europe. Today, over 70% of new vehicles registered in Europe are diesel powered. The key to success in biodiesel industry is technology and quality. Malaysia has the first integrated biodiesel plant in the world able to produce biodiesel and phytonutrients from crude palm oil. Malaysian Government has announced it will accord the pioneer status or high technology status to biodiesel companies, which provides a 70% and 100% tax waiver for five years. To compete globally, Malaysian biodiesel need to produce high quality cost-competitive products. To have cost competitiveness a producer must achieve economies of scale in operations and this can only be achieved with a large market. The Malaysian Envo oil is not the equivalent of the internationally accepted biodiesel (methyl ester). Envo oil is a blend of 95% fossil diesel and 5% palm oil Many markets like South Korea, the United States and European Union (EU) do not allow the use of direct vegetable oil into diesel engines. For instance, the EU standard on biodiesel (EN 14214) requires a minimum content of 96.5% methyl ester and no more than 0.2% triglycerides. Related Stories: |
| MALAYSIA Malaysia is strategically located in the heart of Southeast Asia with a population of 24 million and a per capita GDP of RM14.500 (USD3,800). Kuala Lumpur is the capital of Malaysia and doubles as the financial and business capital with an estimated population of 1.8 million. Malaysia ranked among the world's top 20 trading nations and is one of the fastest growing economies in the world and also a leading exporter of manufactured goods. It is blessed with an abundance of natural endowments such as petroleum and natural gas, timber, minerals and marine resources. Malaysia is the world's largest producer and exporter of palm oil. This commodity is playing an increasingly important role in the country's revenue (RM20 billion in 2004) second only to petroleum (RM21 billion). |
| SABAH forms one of the thirteen (13) states that make up Malaysia. It covers a
land area of 73,997 sq km. Sabah. Rich natural resources (petroleum, gas,
timber, minerals, fisheries), fertile land and a small population (2.5 million
in 2000) make Sabah a land of plentiful investment opportunities. Strategically located in the heart of the BIMP-EAGA (Brunei, Indonesia, Malaysia, Philippines East Asean Growth Area). Sabah lies in the centre of one of Asia's largest regional grouping, spanning territories of four ASEAN countries measuring an estimated 1.54 million sq km and home to 60 million people. As the biggest producer of palm oil in Malaysia, the investment potentials in the sector are being given focused attention through the palm oil industrial cluster concept and the creation of the POIC Sabah Sdn. Bhd., the company to spearhead the realization of the concept as the State Government of Sabah seeks to further diversify its revenue base.  Palm oil industrial clusters are also envisaged for the Sandakan and Kimanis
areas where substantial oil palm plantations thrive. The creation of the
clusters and the investments in oil palm-related industries are expected to
strengthen Sabah's economic foundation and also Malaysia's position as the
foremost producer of palm oil in the world. |
| The first of three proposed palm oil industrial clusters is located in Lahad
Datu, in southeastern Sabah. Lahad Datu is ideal for following reasons:
Located within the heart of Sabah's palm oil belt |
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Apart from being developed for the growth of a wide range of palm oil
downstream industries, the POIC in Lahad Datu will also serve as a centre where
investment in upstream activities will flourish. Plantations |
| A Hub of Endless Opportunities The POIC at Lahad Datu will be developed in two phases. Phase 1, due for commissioning in 2006, covers 500 acres meant for bulking and oil-based industries. Phase 2, covering 500 acres for oil palm biomass and food based industries will start development in 2007. |
| Biomass Pulp & Paper Fiber Composite Plastic Component Block Board |
| Food Industries Palm santan powder Margarine / Spreads Bread Spreads Shortening Non Dairy Ice-Cream Ice-Cream Powder Palm-Based Tempura Oil Ice-Cream Cooking Oil Salad Dressing Trans Free Vanaspati Chocolate Paste |
| Nutraceutical / Phytonutrients Tocotrienols (Vitamin E) Carotenes (Vitamin A) Phytosterol (Sterol) Squalene Coenzyme Q Lecithin |
| Oleo chemical Personal care products Soap and Shampoo Candies PFAD Crayon Detergents Cosmetic and Personal Care Products |
| Biofuel & Power Supply Industries Palm Diesel / Biodiesel Biogas |
| Main Incentives for Manufacturing Companies New Companies Pioneer status : will enjoy a 100% tax exemption on their statutory income during their 5 year exemption period. Investment Tax Allowances : will enjoy an allowance of 100% on the qualifying capital expenditure incurred within a period of five years. Enhance incentives for the utilization of Oil Palm Biomass : Biomass companies that utilize oil palm biomass to produce value-added products such as particle board. MDF. plywood, pulp and paper are eligible: Renewable energy : Pioneer status with a tax exemption of 100% of the statutory income for a period of 10 year; or Investment tax allowances : 100% on qualifying capital expenditure incurred within 5 years. Allowance can be used to setoff against 100% of the statutory income in each year of assessment. Incentives for the Agriculture Sector |
| Incentives for Environmental Protection - Incentives for the storage, treatment and disposal of toxic and hazardous Waste. - Incentives for energy conservation - Incentives for waste recycling activities - Incentives for the use of renewable energy resources - Accelerated capital allowance Incentives for Research and Development - Contract R&D Company - R & D Company - In-house research - Double deduction for R&D - Incentives for researchers to commercialize research findings Incentives for Training - Investment tax allowance - Special industrial building allowance - Tax exemption on education equipment - Tax equipment on royalty payments |
| Incentives for Shipping and Transportation Industry - Tax exemption for shipping operators - Exemption from import duty and sales tax and prime movers and trailers Others General Incentives - Industrial building allowance - Infrastructure allowance - Tariff related incentives - Incentives for export - Training Incentives - Incentives for Acquiring Proprietary Rights - Incentives for Use of Information Technology - Incentives for the Use of Environmental Protection Equipment - Donations for Environmental Protection - Incentives for Employees' Accommodation - Incentives for Employees' Child Care Facilities Export Promotion Activities Grants to assist Small and Medium Enterprises (SMEs) under activities for the development of export markets. Eligible activities are :- - Participation in trade missions, specialized selling missions and international trade fairs; - Participation in Malaysia Trade Centre overseas; - Preparation of promotional items; - Promotion of brands overseas; - Designing and improving packaging of products; and - Participation in overseas international tenders. Type of Grants - Business Planning and Development - Product and Process Improvement - Productivity and Quality Improvement and Certification - RosettaNet Standard Implementation - Enhancing Product Packaging Design and Labeling Capabilities of SMEs - Development and Promotion of Ha/a/ Product - Skills Upgrading |
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| INDEX : New Oil Palm | August 16, 2008 01:34:49 PM |
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