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11 Strategic Initiatives for the Palm Oil Industry
PAlm Oil Leadership & Management
11 Strategic Initiatives that will provide
outstanding innovation and creativity in
transforming the oil palm industry
Lt Cmdr (Retired) Johnny Moi, RMN
I. EXECUTIVE SUMMARY
The purpose of this proposal is to provide PALM
Associations [including Malaysian Palm Oil Association
(MPOA), Malaysian Palm Oil Board (MPOB), Malaysian
Palm Oil Council (MPOC) and related organizations such as
FELDA, National Organization of Smallholders, Malaysian
Estate Owners Association, Palm Oil Millers Association and
Malaysian Oleo-chemical Manufacturing Group…] with the
Strategic Initiatives that will address the socio-economic
challenges and improve livelihoods of individuals,
communities and regions in the palm oil industry. Successful
implementation of this proposal will enable it to have an
enhanced model to achieve its objectives (or strategies) and
The proposed overall objectives (or strategies) to be
1. To expand and improve current uses of palm oil products.
2. To find new uses and markets for palm oil products.
3. To improve production efficiency and quality in palm oil
4. To optimize land utilization in oil palm areas using
technologies and other farming methodologies.
5. To promotethe consumption and marketability of oil palm
These are the major overall objectives or strategies.
Secondary benefits that will result from the success of these
strategic initiatives are:
1. A Master plan or Blueprint to implement policies and
developmental program relating to oil palm industry.
2. A central point to conduct and promote R & D.
3. An industry Training and Development platform.
4. A focal point to coordinate all activities in relation to the
oil palm industry.
5. Further development and maintenance of the palm oil
6. Forum and Focus point with external interested parties.
7. Human Resource Development Centre – planning and
implementation of all training programs.
8. Management of a Resourceand Information Centre for the
palm oil industry.
II. CURRENT SITUATION
There are many critically challenges and factors affecting the
palm oil industry. Among them are low prices, low soybean
oil prices, replanting issues and unregulated supply and
demands. Growing challenges and issues have necessitated
other organizations that are beginning to challenge the
leadership position. This new leadership challenge make it
imperative that it reasserts its status quo by introducing new
strategic initiatives that will bring value-added benefits
beyond its entity to existing and new members and the
community at large.
III. PALM ASSOCIATIONS POLICIES
The proposed key activities and policies of PALM
1. To adopt strong market and industry –orientated research
and development programs.
2. To aggressively undertake transfer of technologies and
commercialization of research results.
3. To forge an active partnership in technology development
and utilization with the private and public sectors.
4. To strengthen international linkages and research
collaboration in selected areas.
5. To promoteglobal awareness, appreciation and demand for
Malaysian oil palm and related products and services.
IV. THE APPROACH – DEVELOPING THE 11
PALM Associations proposes to meet the objectives and
requirements by implementing of the following approach.
This implementation plan consists of 11 Strategic
This will include the following:
1. Development of a global or transnational strategy.
2. Development of a total system approach in measurement,
mitigating, reporting and monitoring in oil palm production.
3. Development of a blueprint to improve palm oil yields and
reduce biodiversity environmental and climatic impacts.
4. The development and enhancement of a Research &
Development Centre as well as a Training Centre.
5. Development of a strategic approachto CSR programs for
community development in the oil palm industry.
6. The empowerment of smallholders / farmers through
plantation companies & governmental assistance programs.
7. The study and adoption of new technologies to improve
yield, reduce pollution and improve management of mills and
8. Development of a comprehensive conservation approachto
mitigate biodiversity impacts of oil palm production.
9. Development and enhancement of a trans-boundary haze
pollution prevention council.
10. The establishment of a Palm-oil Leadership &
Management (P.A.L.M.) Annual Gala Awards’ Night.
11. The development of a Strategic Marketing Plan that will
cover the Organizational Positioning, Goals & Strategies,
Market Opportunities, Target Market(s) and the Marketing
In enhancing PALM Associations as an effective
organization, following are the considerations:
Vision – To become the premier producing research and
development institution providing leadership and impetus for
the development of a highly diversified, value-added globally
competitive and sustainability oil palm industry.
Mission– It is to enhance the well being of the Malaysian oil
palm industry through research, development and excellent
V. IMPLEMENTATION SUMMARY
1. Review all the above Strategic Initiatives, programs or
plans with approving Associations for final approval
2. Develop written and electronic copy and handbooks for
3. Hold enterprise-wide meeting and presentation to
formally introduce programs to all members.
4. A Project Management Systemmay be developed forthe
implementation of PALM Associations’ 11 Strategic
VI. OVERVIEW OF DELIVERABLES
In support of PALM Associations it is proposed with the
following proposed deliverables:
1. Legal and formal set up of a subsidiary company or entity.
2. Strategic Planning services for members (include
smallholders and traders) and associated parties in the oil
3. Financial Planning services for all members and interested
4. Development of a Small Medium Enterprise Model for
smallholders or traders.
5. Development and implementation ofthe proposedMultiple
Benefits Insurance Plan (optional).
6. Development and implementation of BEST (Better
Expertise Support & Training programs) (2) – Basic and
7. The development of an Enterprise Resource Planning
(ERP) system to manage the end to end activities.
In addition, the following optional services may be made
1. Project Management of start up, staffing and hand over
of PALM Associations Strategic Planning Unit or entity.
2. Feasibility Study and Project Management of PALM
Associations Strategic Division set up and any other projects
as directed by PALM approving Associations.
3. The sourcing and project implementation of the ERP
system for PALM Associations.
VII. RESULTS ENHANCERS
To provide accelerated project completion and reduce
development costs, the following items that add value and
enhance the results are proposed. Theseresults-enhancers
will provide PALM Associations with minimal risks,
maximum benefits in the following:
The setting up of a Strategic entity / think tank to
develop global and transnational strategies for PALM
Development or enhancement of a whole system
approachin measurement, mitigation, monitoring and
reporting in oil palm production (ERP System).
The adoption of Best Management Practices (BMP) to
improve palm oil yields and reduce Biodiversity,
Environmental and Climatic Impacts (BECI).
The establishment of an enhanced R & D Centre as
well as an Industry Training Centre.
Development of a Strategic Plan to all CSR activities
for community development in oil palm industry and
Further empowerment of smallholders, farmers and
traders through plantation companies and government
assistance with funding and management controlby
Enhanced efforts in promoting new technologies to
reduce pollution and improve management of mills
and plantations (new machinery and ERP IT systems).
Development of a comprehensive conservative
approach/plan to mitigating biodiversity impacts of
oil palm production.
The creation of a transnational Haze Pollution
Prevention Council that will look into replanting, law
enforcement, zero burning, peat soil management,
firefighting, collaboration among members’ nations,
cloud seeding, payment for non burning practices and
any other innovative approaches.
PALM Associations annual hosting of the Palm Oil
Leadership & Management (PALM) Annual Gala
Awards Night (Round-table basis). A separate
proposalon this event management is available on
The many complex and challenges faced by all in the oil
palm industry make it imperative that PALM’s associations
must take the innovative approachin asserting its respective
leadership position and roles in this industry. A strategic
technology plan is needed and may not be adequate for
technology is just a tool in strategic planning.
With this in mind, the 11 Strategic Initiatives is proposedto
meet the myriad issues and challenges faced by those in the
industry. The 11 Strategic Initiatives will take in
consideration the objectives and policies of PALM
Associations and outline the strategic approaches and
benefits to enhance PALM Associations’ standing.
Implementation of the 11 Strategic Initiatives will enable
PALM Associations to address the major challenges
outlined in the proposaland faced in the oil palm industry.
The call for an innovative and creative plan necessitates that
an out-of-the-box approachto the complex and dynamic
nature of the oil palm industry. This means advocating the
implementation of a Strategic Plan (11 Strategic Initiatives)
rather than a Technology Plan. Suffice to say, a Technology
Plan is to supportthe Strategic Plan.
Lt Commander (Ret) Johnny Moi, RMN is an international award writer,
was formerly the Chief Editor of LEADERS Magazine. He can be reached at