Rapid growth seen for biomass sector

We are looking for some new growth strategies, as currently we have information technology, biotechnology and electrical and electronics sectors which have done well. Datuk Seri Mustapa Mohamed.

KUALA LUMPUR: The Malaysian Investment Development Authority (MIDA), a unit under International Trade and Industry Ministry, projects rapid growth and good prospects for the country’s biomass industry next year.

Minister Datuk Seri Mustapa Mohamed said biomass was an important sector and Malaysia needed to harness its potentials.

“We (Malaysia) are looking for some new growth strategies, as currently we have information technology, biotechnology and electrical and electronics sectors which have done well,” he told reporters at the Biomass Conference 2015 here yesterday.

He said Malaysia’s biomass ecosystem now was quite simple where biomass items were converted to oil palm pellets which were sold to South Korea and China.

Mustapa said the biggest opportunities were in Sarawak, Johor and Pahang which had big palm plantations, which could be relied on for good and regular supply of raw materials.

He said the country needed to move up and produce bio-ethanol, citing Brazil which converted sugarcane waste to ethanol for fuel.

Investments in biomass industry in Malaysia continue to be encouraging and as of 2014, MIDA approved a total of 12 biomass projects with investments of RM82.9mil compared with 11 projects with investments of RM54.6mil in 2013.

Domestic investments amounted to RM71.1mil while foreign investments totalled RM11.8mil.

Approved biomass projects were for utilisation of empty fruit bunches and palm oil mill effluents to produce organic fertiliser, oil palm pellet, peeled palm lumber and fibre.

Significant opportunities now exist in downstream activities, which generate higher value-added products in the palm biomass sub-sector.

Other promoted growth areas in the palm oil sector are in oleochemical-based products and nutritional food and ingredients, as well as research and developments activities which involve high levels of technology.

Source : Bernama

Posted on : 16 June 2015
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Last Updated : Thursday 17th October 2019