Vol. 15 (2) September 2015 – OPIEJ https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Thu, 21 Mar 2019 02:17:08 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 Bulking Installations in Malaysia: Their Issues and Challenges Relating to the Palm Oil Industry https://opiej.mpob.gov.my/bulking-installations-in-malaysia-their-issues-and-challenges-relating-to-the-palm-oil-industry/ Wed, 29 Aug 2018 00:10:50 +0000 https://opiej.mpob.gov.my/?p=368 Read more]]> Bulking installations are facilities for the storage of crude and refined palm oils in port tanks until they are ready to be piped directly into the tankers which berth at nearby jetties in the port. This study covers six regions, namely, the southern region, central region, northern region, east coast region as well as Sabah and Sarawak. The purpose of the article is to provide information regarding the export trends of bulking installation facilities in Malaysia. The method used in the study is faceto-face interviews and a survey to determine the issues and challenges faced by the various bulking installation facilities. The major issues and challenges faced during the handling of transshipment cargo were determined from all the interviews and field visits undertaken, especially in the northern region. It was found that different issues and challenges were faced by the operators of bulking installation facilities in the different regions.

Keywords: bulking installation facilities, palm oil logistics, palm oil

]]> Impact of Tax Imposition on Cost Competitiveness of the Malaysian Palm Oil Industry https://opiej.mpob.gov.my/impact-of-tax-imposition-on-cost-competitiveness-of-the-malaysian-palm-oil-industry/ Wed, 29 Aug 2018 00:09:47 +0000 https://opiej.mpob.gov.my/?p=366 Read more]]> The study aims at examining the impact of tax imposition on the cost competitiveness of the Malaysian palm oil industry, using gross profit margin analysis. Secondary data were used in this study and gross margin analysis was undertaken to identify the relationship between cost and revenue for each commodity, namely, oil palm, rubber and cocoa. Gross profit (GP) is the difference between total revenue (TR) and total operating cost (total cost of production). To calculate gross profit margin (GPM), GP is multiplied by 100 and divided by TR (GP/ TR x 100). GPM with and without tax were calculated and compared for each commodity. In the calculation of GPM, the average price in 2013 and the average price over seven years (2007-2013) for the three commodities were used. Based on the average price in 2013, it was found that GPM with tax for rubber was the highest at 48.93% compared with oil palm (45.91%) and cocoa (7.79%). For oil palm, if the crude palm oil (CPO) price were less than or equal to RM 2500/t, an increase in CPO price will increase GPM, and the difference between GPM with and without tax becomes lower. However, if CPO price were greater than RM 2500/t (when the windfall profit levy will be imposed on oil palm plantations), an increase in CPO price will increase GPM, but the difference between GPM with and without tax becomes higher. This means that the windfall profit levy gives a higher impact to the oil palm plantation than cess and sales tax.

Keywords: cost competitiveness, gross profit margin analysis, oil palm plantation, tax

]]> Labour Productivity in the Malaysian Oil Palm Plantation Sector https://opiej.mpob.gov.my/labour-productivity-in-the-malaysian-oil-palm-plantation-sector/ Wed, 29 Aug 2018 00:08:43 +0000 https://opiej.mpob.gov.my/?p=364 Read more]]> This study attempts to measure oil palm labour productivity based on land-labour ratio by job category, region and estate size; and based on output-labour ratio by job category and region. It culminates by suggesting action plans for improving labour productivity and reducing labour requirement. Primary data collected through an online survey were used in the study, while the calculation of labour productivity was done using Microsoft Office Excel and SPSS. From the study, it was found that the ideal land-labour ratio for oil palm plantations in Malaysia is 10:1. Currently, the ratio set by the government for oil palm estates hiring foreign workers is 8:1 (i.e. 8 ha to one worker). To reduce the number of foreign workers in oil palm plantations, the current ratio needs to be increased from 8:1 to 10:1. To increase labour productivity, it is suggested that estate owners practise mechanisation, especially for harvesting (when palm height is less than 8 m) and in-field collection of fresh fruit bunches (FFB). By using a motorised cutter for harvesting, productivity per worker can be increased from 0.99 t per day to 2.24 t per day. For in-field collection, a mechanised FFB transport system (MFTS) can reduce the required number of workers and lower the cost of transportation as well as cost of production.

Keywords: labour, productivity, land-labour ration, output-labour ratio, mechanisation

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