Showing posts with label MPOA. Show all posts
Showing posts with label MPOA. Show all posts

Saturday, 16 August 2025

Engineer Beneath the Palm’s Shadow: A Mission to Change the World’s Narrative

Engineer Beneath the Palm’s Shadow: A Mission to Change the World’s Narrative

Chapter 1 – Between Steam and the Sweet Scent of Palm Fruit

Dawn broke over Lahad Datu with the soft breath of sea air. In the distance, the sun pierced the morning mist, casting golden light over rows of palm trees standing like loyal soldiers. Ahmad Farhan, a process engineer, stood on the mill’s platform, watching trucks roll in, each loaded with freshly harvested fruit bunches.

The warm steam from the steriliser mixed with the sweet aroma of ripe palm fruit, filling the air. To an outsider, this might be just another industrial scene. But to Farhan, it was a symphony — an orchestra of life connecting farmers, truck drivers, technicians, and entire communities.

He knew that every drop of palm oil was not just cooking oil. It was nutrition: carotenoids giving it its golden hue, rare tocotrienol vitamin E, and energy to feed millions across the globe.

Chapter 2 – A Tale of Two Oils

One evening, Farhan sat in his office, scrolling through an article on olive oil. Pictures of ancient groves, elegant green glass bottles with “Extra Virgin” labels, and romantic Mediterranean tales had seduced millions of consumers.

He sighed. Why can’t palm oil tell its story like this?

Olive oil was wrapped in an image of health, elegance, and purity. Palm oil, on the other hand, was often linked to burning forests, choking smoke, and ruthless corporations. Farhan knew some of these accusations had truth in the past — but he also knew the industry had changed. Plantations were now certified sustainable, mills adopted eco-friendly technology, and wildlife conservation programs operated alongside production.

The only missing piece was the narrative.

Chapter 3 – From CPO to PPO

In a marketing team meeting, Farhan pitched a bold idea. “Let’s stop using the term Crude Palm Oil. The word ‘crude’ sounds dirty, industrial, and unrefined. Replace it with Pure Palm Oil or Natural Palm Oil.”

A marketing officer smirked, “Farhan, the world won’t change just because we change a name.”

He replied calmly, “Names are the first doorway. Look at olive oil — ‘extra virgin’ is just a marketing term, yet it inspires trust and luxury. We can do the same, but with even stronger facts, because our palm oil is genuinely nutrient-rich.”

Chapter 4 – The Stage in Geneva

A month later, Farhan flew to Geneva for the International Edible Oils Conference. The auditorium was filled with business leaders, scientists, and policymakers from around the globe. When his turn came, he stepped onto the stage, heart pounding.

The presentation screen lit up with images of lush palm plantations, harvesters with long sickles, and data comparing crop efficiencies.

“Ladies and gentlemen,” he began, “one hectare of palm oil can produce 7 to 10 times more oil than soybean or sunflower. We don’t need vast forests to feed the world — instead, we use land optimally.”

He held up a bottle of golden-red palm oil. “This is not just oil. It’s a source of natural carotenoids, vitamin E tocotrienols that support heart health, and energy that feeds over three billion people. And it’s extracted without the harmful chemical solvents used in other oils.”

Chapter 5 – Reaching Hearts and Changing Minds

His speech ended with thunderous applause. But what meant most to Farhan was when a nutritionist from Italy approached him afterward, saying, “I never knew palm oil had such high vitamin E content. We need to study this more deeply.”

Months later, a European magazine ran an article titled “Palm Oil: Nature’s Hidden Treasure” with a photo of a Sabah plantation on its cover. Some companies began labeling their products Natural Palm Oil in Middle Eastern markets. The new narrative was taking root.

Chapter 6 – Legacy Beneath the Palm’s Shadow

One evening, Farhan stood at the Lahad Datu dock, watching a palm oil tanker set sail for Rotterdam. The sunset reflected gold on the sea’s surface, as if echoing the promise of palm oil: wealth, health, and sustainability.

He knew this mission was far from over. But as long as there were voices to tell the truth, plantations to thrive, and farmers working with dedication — palm oil would rise again, not as an enemy of nature, but as a tropical gift to the world.

Farhan smiled. He was not just an engineer. He was a storyteller of truth, carrying the tale from beneath the palm’s shadow to the world stage.

Monday, 11 August 2025

The engineer who leads beyond titles


When Ir. Faris Ahmad took over as CEO of AgroPalm Global, one of the world’s largest multinational palm oil companies, the board expected a familiar corporate playbook — cost-cutting, tight control, and quarterly numbers obsession.

But Faris was no ordinary CEO.

He was an engineer by training — forged in the heat of boiler rooms, refinery floors, and oil palm estates. He knew the heartbeat of the business not from PowerPoint slides, but from the hiss of steam, the smell of fresh fruit bunches, and the grit of long days in the field.

On his first week, instead of sitting in the top-floor corner office, Faris travelled — to the remotest mills in Sabah, the refineries in Rotterdam, and the research labs in Johor. His goal wasn’t to command; it was to listen.

He asked the mill engineers,
"If you were CEO for a day, what would you change?"

He asked the harvesters,
"What slows you down the most in your work?"

And he asked the young management trainees,
"What’s your dream for this company?"

What he found was a company full of smart, capable people — but trapped in silos, waiting for “orders from above.”

Faris knew the problem: leadership had been hoarded at the top.
His solution: distribute it.

He launched the "Lead Where You Are" program — a leadership development initiative that trained supervisors, engineers, and even plantation assistants in decision-making, problem-solving, and cross-functional collaboration.

Instead of approving every small request, he gave department heads authority to act within clear boundaries. Mistakes were treated as lessons, not punishments.

He introduced Innovation Days, where anyone — from lab technicians to lorry drivers — could pitch ideas to improve safety, efficiency, or sustainability. One harvester’s suggestion to modify the collection ramp saved the company RM2 million annually.

And he personally mentored a cohort of 20 emerging leaders, insisting each one mentor two more in return. The effect rippled through the organization.

Within three years:

Operating efficiency rose 15% without cutting jobs.

Sustainability rankings improved, attracting major global buyers.

Employee turnover dropped to the lowest in company history.

And most tellingly — four senior managers were promoted to lead new overseas operations, each shaped by Faris’ leadership philosophy.

At his 5-year mark as CEO, a journalist asked him,
"What’s your proudest achievement here?"

Faris smiled, looked at the group of managers standing behind him, and said,
"You’re looking at it. My legacy isn’t the company I ran — it’s the leaders we built."

Because for Ir. Faris Ahmad, true leadership was never about the number of people following him.
It was about the number of people who could lead without him.

The one skill that changed his career

When Amir first arrived at the palm oil mill in Kunak, Sabah, he was known for one thing—his technical brilliance.
He could trace a process flow blindfolded, detect a boiler’s issue from a single hiss of steam, and calculate extraction rates faster than most could open Excel.

Naturally, when the senior maintenance manager retired, the board decided Amir should take the role.
After all, if he could solve mechanical breakdowns in record time, surely he could manage a team, right?

The first few months told a different story.
Suddenly, Amir wasn’t just fixing machines—he was managing people.
He was in meetings more than in the workshop, listening to conflicting complaints between fitters and operators.
Tasks he thought were “clear” came back incomplete.
Delegation felt like giving up control, and frustration became his new shadow.

One day, his mentor, Encik Rahman, pulled him aside.
“Amir, you don’t have a people problem. You have a skill gap. You were promoted for what you can do, but now your job is to help others do it well.”

Rahman gave him one challenge:
“Pick one skill—just one—that you will master. The one that will make everything else easier.”

After a week of thinking, Amir chose Communication & Delegation.
Not the glamorous “strategic thinking” skill. Not the tempting “decision-making under pressure” skill.
Just the humble, often-overlooked art of explaining clearly, assigning wisely, and listening fully.

Over the next six months, Amir learned to:

  • Explain the why behind tasks, not just the what.
  • Match jobs to the right people based on strengths.
  • Set checkpoints instead of breathing down necks.
  • Listen without rushing to fix everything himself.

The change was slow but visible.
His team grew more confident. Breakdowns were solved faster without him always jumping in.
And for the first time, Amir left work with energy instead of exhaustion.

Years later, when asked about his biggest career turning point, Amir didn’t mention his degree, his promotions, or the million-ringgit project he led.

He simply said:
“The day I realised managing machines and managing people are two different jobs—and I learned to do the second one well.”

The Young Engineer Who Earned Respect

When Amir first arrived at the palm oil mill in Sandakan, his white safety helmet looked too clean, his boots too new. Fresh from university, armed with a mechanical engineering degree, he was eager to prove himself.

The mill was a different world — the scent of fresh fruit bunches in the morning, the rhythmic hum of the press machines, and the chatter of seasoned operators who had been there longer than Amir had been alive.

At first, Amir thought his role was to “fix things” and “make processes faster.” He spent days buried in manuals, sketching diagrams, and preparing technical solutions. But something was missing — the operators weren’t engaging with him. His ideas rarely gained traction.

One day, the senior fitter, Pak Salleh, invited him for coffee during a short break.
“You know, Amir,” Pak Salleh said, looking over his cup, “the machines here don’t just run on steam and oil. They run on people. If you want things to work, you have to work with them, not just on the machines.”

That advice stuck.

Amir changed his approach. He swapped some office hours for time on the shop floor. He listened to the operators’ concerns — about spare parts that always came late, about safety hazards near the sterilizer, about night shifts with too few hands. He asked questions, not to prove he knew better, but to understand.

Slowly, the mill changed.
The team began to share small innovations — a more efficient way to clean the conveyor, a better schedule for boiler blowdowns, a safer method to clear blockages. Productivity improved, but more importantly, morale lifted.

Months later, when the mill achieved its highest extraction rate in five years, the Mill Manager called Amir into his office.
“You’ve done well, Amir,” he said. “Not just for the numbers — but because the team trusts you now. And that’s worth more than any title.”

Amir walked out of the office with a quiet smile.
His degree had opened the door to the mill.
But respect?
That was something he had to earn — one conversation, one act of empathy at a time.

Sunday, 10 August 2025

From Control to Trust – The Leadership Shift at Batu Niah Palm Oil Mill

When Amiruddin was promoted to Mill Manager at Batu Niah Palm Oil Mill, Miri, Sarawak, he thought the only way to keep production on track was to monitor every move.
Every report, every breakdown, every shift change — he was there, checking, questioning, correcting.

At first, it seemed to work. Output was stable, defects reduced.
But beneath the surface, something was breaking.
Operators stopped offering ideas. Supervisors only did the bare minimum.
It wasn’t sabotage — it was suffocation.

One day, a senior fitter named Pak Salleh pulled him aside and said,
“Boss… we follow your way, but the mill feels… quiet now. People takut silap. They don’t try new things anymore.”

That night, Amiruddin couldn’t sleep.
He remembered reading a Gallup report saying only 1 in 5 employees felt truly motivated by how they were managed. He realised he was the problem, not the team.

The next morning, he called his supervisors together.
“From today,” he began, “I will stop telling you how to do the job. I will only tell you what success looks like.”

He made five changes:

1️⃣ Define outcomes, not tasks – Instead of dictating boiler firing sequences, he said, “I want a stable 28-bar pressure at peak hours. Find your best method.”

2️⃣ Share clear checkpoints – Weekly performance reviews were scheduled in advance, so updates felt planned, not like surprise inspections.

3️⃣ Equip, then step back – He ensured the workshop had the right tools, spare parts were stocked, and authority given to act without waiting for his signature.

4️⃣ Stay available, not attached – His office door stayed open, but he no longer hovered in the control room unless needed.

5️⃣ Coach in public, correct in private – Good performance was praised during morning toolbox meetings. Mistakes were addressed quietly in one-on-one discussions.

At first, the team was unsure. But slowly, things began to shift.
Operators experimented with better oil loss control in clarification. Fitters took initiative to prevent breakdowns instead of waiting for instructions.
Three months later, Batu Niah Mill recorded its highest OER in five years. Not because Amiruddin worked harder — but because his people worked smarter.

And when a visiting auditor asked the assistant engineer what had changed, he simply said,
“Boss trusts us now. So we trust ourselves.”

Amiruddin smiled quietly.
Control had kept the mill running.
But trust had made it grow.

Wednesday, 14 June 2017

The Supply Chain of the Palm Oil Industry in Malaysia


6.1 Introduction

The Malaysian palm oil industry spans a full value chain of stakeholders (Figure 7), grouped as follows: upstream producers, downstream producers, exporters/importers, customers, industry organisations, government agencies, and other stakeholders such as NGOs and unions.1

Profiles of major players are provided in Part B and follow a standard template (Introduction; Vision/Mission; Role/Function; Organisation; Funding; Activities; Contact). Plantation company profiles use a two-page fact sheet format with triple-bottom-line performance, crop statements, 5-year productivity and production, and 5-year financials, based on public sources (annual reports, corporate websites, press).[^^1]


6.2 Upstream Producers

6.2.1 Plantation Companies / Private Estates

In 2000, Malaysia had 3.38 million ha of oil palm; 60% was privately owned. From 1980–2000, private-estate planted area grew >3.6× (557,659 ha → 2,024,286 ha), with most new developments in Sabah and Sarawak.2

Table 11: Distribution of Oil Palm Planted Area (Hectares)

Ownership 1980 Hectares (%) 1990 Hectares (%) 2000 Hectares (%)
Private Estates 557,659 (52.1%) 912,131 (44.9%) 2,024,286 (60.0%)
FELDA 316,550 (29.6%) 608,100 (30.0%) 598,190 (17.7%)
FELCRA 18,851 (1.8%) 118,512 (5.8%) 154,357 (4.6%)
RISDA 20,472 (1.9%) 32,582 (1.6%) 37,011 (1.1%)
State Schemes 67,281 (8.0%) 174,456 (8.6%) 242,002 (7.1%)
Smallholders 70,446 (6.6%) 183,683 (9.1%) 320,818 (9.5%)
TOTAL 1,051,259 2,029,464 3,376,664

Source: MPOB.2



Historical Perspective

Colonial-era pioneers include Sime Darby (1910), Guthrie (roots 1821), Golden Hope (origins in Harrisons & Crosfield, 1844), Kuala Lumpur Kepong (1906), and United Plantations (Jendarata Estate, 1906, founded by Aage Westenholz).3 A comprehensive early history is documented in Tate (1966) and Tate (1996).3

From the 1970s onward, “home-grown” companies—IOI, Hap Seng, IJM Plantations, Asiatic (now Genting Plantations), PPB Oil Palms, Tradewinds, Austral—expanded rapidly.4

  • IOI grew from zero base (1983) to >100,000 ha by 2002, notably via the 1990 Dunlop Estates acquisition; later moved downstream via Loders Croklaan.45

  • Austral expanded in Sarawak (14 estates; 31,588 ha).[^^4]

  • Asiatic built a large Sabah footprint (Kinabatangan).[^^4]

  • Hap Seng and IJM Plantations concentrated in Sabah.[^^4]

Ownership Categories

  • PNB-controlled: Sime Darby, Golden Hope, Kumpulan Guthrie, Austral (via parent). Equity realignment under the NEP (1970) led to Malaysianisation of plantation assets; the 1981 Guthrie “dawn raid” on the LSE is the most cited example.6

  • Malaysian non-PNB: KLK, IOI, Hap Seng, Asiatic/Genting, PPB Oil Palms.[^^6]

  • Foreign-controlled: United Plantations (significant Danish shareholding), Pamol (Unilever). Unilever later announced divestment of Malaysian plantations (est. 21,700 ha), reported 18 Sept 2002.7

Core Business

Many groups diversified beyond plantations:

  • Sime Darby—automotive, property, energy, trading; plantations contributed a smaller share of earnings in FY2000–2001 (segment mix effects).8

  • IJM—construction, infrastructure, property, manufacturing; plantations accounted for smaller revenue/profit shares (circa early 2000s).[^^8]

  • IOI—integrated across property, industrial gases, oleochemicals, specialty fats after Loders Croklaan acquisition.5

Geographic footprint: Numerous Malaysian groups pursued land in Indonesia in the 1990s; actual developed areas lagged proposals after the 1997–98 Asian Financial Crisis. Guthrie was the notable exception, enlarging its Indonesian footprint via Minamas Plantations (2001).9


6.2.2 Government Schemes

FELDA

Established 1956 for resettlement and land development; later shifted to commercial plantation management. By 2000, FELDA managed ~598,190 ha (17.7%) and produced ~20–21% of Malaysia’s palm oil (2001).[^^2]10 FELDA is vertically integrated: ~258 plantations, 72 mills, 6 kernel crushers, 7 refineries, 2 margarine plants, plus overseas refining (Egypt, China) and an oleochemicals JV with Procter & Gamble (FPG).10
Corporate structure: Felda Holdings Sdn Bhd (36 subsidiaries/associates); settlers’ cooperative KPF holds 51% of Felda Holdings.[^^10]
Replanting to 2000 totaled 117,676 ha.[^^10]

FELCRA

Formed under the 1966 Act, corporatised 1997; manages ~154,357 ha (4.6%) and balances socio-economic mandates with upstream/downstream ventures.11

RISDA

Created under the Rubber Industry Smallholders Development Authority Act; later extended into oil palm. By 2000, RISDA-managed oil palm area was 37,011 ha (1.1%).12


6.2.3 Smallholders

Individual smallholders manage ~320,818 ha (9.5%) of oil palm. Under the RISDA definition, a smallholding is ≤100 acres (40.5 ha). A 1992 census recorded 420,193 smallholders managing 1.289 million ha (avg. 3.05 ha). Representation is through NASH.13


6.3 Downstream Producers

Downstream activities include milling, refining/fractionation, edible oils/fats, specialty fats, and oleochemicals.14

  • Major refiners: PGEO Edible Oils (PPB group), Ngo Chew Hong, Pan-Century (Birla Group).14

  • Cooking oil & food products: FELDA, Golden Hope, PPB Oil Palms/FFM/Kuok Oils & Grains, Sime Darby, United Plantations, Lam Soon, Intercontinental Specialty Fats.[^^14]

  • Specialty fats: IOI (Loders Croklaan), PPB Oil Palms, Sime Darby, United Plantations, Intercontinental Specialty Fats, Southern Edible Oil, Cargill Specialty.514

  • Oleochemicals: Palmco (IOI), KLK’s Palm-Oleo, Southern Acids, and multinational JVs (Cognis–Golden Hope, FPG (P&G–FELDA), Akzo Nobel, Uniqema).[^^14]

SME-scale palm kernel crushers supply CPKO to refiners and oleochemical plants (≈44 companies listed circa 2002).[^^14]


6.4 Exporters & Importers

Malaysia’s key destination markets: India, China, EU, Pakistan, Egypt.114 Historically, exports focused on refined products due to high CPO export duty; to reduce stockpiles, the government temporarily allowed duty-free CPO quotas (e.g., 1.0 million t in 2001). Exporters included Austral, Golden Hope, KLK, IOI.15

A non-exhaustive list of major importing firms across 20+ countries is recorded in MPOPC directories (1999–2002).[^^14]


6.5 Industry Organisations

Plantations

  • MPOA (1999 merger of UPAM, RGA, MEOA, MOPGC) represents >70% of private estates; seats on MPOB Board and MPOPC Trustees; active on sustainability (e.g., WWF dialogues, BMPs).[^^1]

  • EMPA continues to represent Sabah/Sarawak estates; collaborates with state agencies on environmental issues (e.g., Lower Kinabatangan).[^^1]

Planters

  • ISP (est. 1919): >4,350 members; professional exams/qualifications (Diploma → MSc with UPM), The Planter journal (since 1920), conferences and training.16

Processors

  • POMA: independent millers; mediation on FFB supply disputes.17

  • PORAM: refiners; members account for >75% of processed palm oil exports.18

  • MEOMA: broader edible-oils value chain; ~80% industry coverage.19

  • MOMG (under CICM): 12 members producing fatty acids, esters, glycerine, fatty alcohols.20

Promotion

  • MPOPC (formed 1990 to counter the 1980s US anti-tropical-oil campaign) leads marketing and technical promotion; established POFTE in 2001 to coordinate environmental positioning across MPOB/DOE and industry bodies.21


Footnotes


If you’d like, I can also produce a 1-page infographic brief (clusters, top orgs, and a mini-timeline) or a company fact-sheet template you can reuse for Part B.

Footnotes

  1. Malaysian Palm Oil Promotion Council (MPOPC). Malaysia Palm Oil Directory (1999–2000; 2002, interactive CD-ROM). 2

  2. Malaysian Palm Oil Board (MPOB). National planted area statistics by ownership, 1980–2000 (as reproduced in Table 11). 2

  3. Tate, D. J. M. (1966). The RGA History of the Plantation Industry in the Malay Peninsula; Tate, D. (1996). Historical notes on early planters (incl. Tan Chay Yan’s 1896 estate and European/Chinese pioneers). 2

  4. Company annual reports (1980s–2002) and Bursa filings for IOI, Austral, Asiatic (Genting Plantations), Hap Seng, IJM Plantations, PPB Oil Palms, Tradewinds. 2

  5. IOI Corporation Berhad. Announcements and annual reports on the acquisition and integration of Loders Croklaan BV (specialty fats). 2 3

  6. Permodalan Nasional Berhad (PNB) history and NEP implementation; Malaysianisation of plantation assets; 1981 Guthrie “dawn raid” coverage in official histories and press archives.

  7. New Straits Times, 18 Sept 2002. Report on Unilever’s intended divestment of Malaysian plantation assets (≈21,700 ha; indicative valuation RM500–800m).

  8. Sime Darby Berhad and IJM Corporation Berhad annual reports (segmental analysis FY2000–2001).

  9. Kumpulan Guthrie Berhad. 2001 acquisition of Minamas Plantations; landbank expansion disclosures.

  10. FELDA Annual Report (2000) and group publications: replanting (117,676 ha to 2000); structure of Felda Holdings Sdn Bhd (36 companies); operating footprint (plantations, mills, crushers, refineries, margarine plants), overseas refineries; KPF 51% shareholding. 2

  11. FELCRA Act (1966), corporatisation (1997), and area statistics in annual reports (to 2000).

  12. RISDA Act (1972) and subsequent agency publications; oil palm area under RISDA (to 2000).

  13. Information Malaysia 2000 Yearbook: 1992 smallholder census (counts, areas, average size, definition ≤100 acres).

  14. MPOPC (2002) directory listings for refiners, kernel crushers, edible-oil manufacturers, and oleochemical producers; company brochures and annual reports. 2 3 4

  15. Ministry of Finance/MPOB circulars and industry releases on duty-free CPO export quotas (e.g., 1.0 Mt in 2001); exporter examples from company disclosures.

  16. Incorporated Society of Planters (ISP): history (1919), The Planter (since 1920), membership and qualifications (with UPM MSc).

  17. Palm Oil Millers Association (POMA): establishment (1985), role with independent millers and FFB supply mediation.

  18. Palm Oil Refiners Association of Malaysia (PORAM): membership coverage (>75% processed exports), policy/standards roles.

  19. Malaysian Edible Oil Manufacturers’ Association (MEOMA): scope across milling, crushing, refining, retail packing, oleochemicals; estimated ~80% industry coverage.

  20. Malaysian Oleochemical Manufacturers Group (MOMG) under CICM: member base and product slate (fatty acids, methyl esters, glycerine, fatty alcohols).

  21. Malaysian Palm Oil Promotion Council (MPOPC): formation (1990), remit, and POFTE launch (2001) with MPOB/DOE/industry representation.

#palmoilmill #miller #sawit #upstream #downstream #refinery #mpob #mpoc #mpoa #blog #blogger #kembarainsan #poma #poram #meoma 

Saturday, 30 May 2009

Crude Palm Oil - > Food Product

RBD Palm Oil, RBD Olein, RBD Palm Stearin, Palm Mid-Fraction
Distilled Palm Oil Fatty Acids, PK Oil Fatty Acids, Stearic Acid, Methyl Esters, Glycerine
Refined Bleached Deodorised Palm Stearin, Bleached Coconut Oil, RBD Coconut Oil, Cocunut Fatty Acid Distillate
PK Fatty Acid Distillate, Crude Coconut Oil, RBD Palm Stearin, Bleached Coconut Oil, RBD Coconut Oil
Palm Kernel, Crude PK Oil, Palm Kernel Cake, RBD Deorised PKO, PK Fatty Acid Distillate
Crude Palm Oil, Bleached Palm Oil, RBD Palm Oil, Palm Acid Distillate, RBD Palm Olein