Kuala lumpur: The need for a new market mechanism to support palm biomass processing as a commercial product may be considered in the future, according to the Ministry of Plantation and Commodities (KPK). Deputy Plantation and Commodities Minister Datuk Chan Foong Hin highlighted that palm biomass activities are already actively conducted through business-to-business (B2B) models involving industry players, technology providers, domestic buyers, and export markets. These activities include processing empty fruit bunches (EFB), palm oil mill effluent (POME), palm kernel shell (PKS), and other by-products.
According to BERNAMA News Agency, 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. Chan communicated this during a session at the Dewan Rakyat in response to a query from Jamaludin Yahya (PN-Pasir Salak) on whether KPK planned to create a market mechanism to support palm waste processing as a commercial product to bolster the agro-commodity ecosystem.
Chan emphasized that with inclusive approaches and continued support from stakeholders, the biomass industry would remain a key driver in reinforcing Malaysia’s agro-commodity ecosystem and contribute to green and low-carbon economic development goals. He noted the palm biomass industry’s positive growth, driven mainly by renewable energy generation, organic fertilizer production, bio-pellets, biochar, pulp, paper, and green chemicals.
Several local firms have successfully commercialized palm biomass, developing new value-added products that generate economic returns for mill owners, smallholders, and local entrepreneurs. Chan stated that KPK’s role is to facilitate, coordinate policy, and create a supportive ecosystem, including through the National Biomass Action Plan 2030 (PTBN2030).
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.