Food Technology – Palm Biomass

Palm Biomass

Malaysia’s biomass supply is generally derived from four main sources; agricultural waste, oil palm waste, wood waste, and municipal waste. Every year, Malaysia produces approximately 168 million tonnes of biomass. Of this, over 80 million tonnes is generated by the palm oil industry. The abundant supply reflects huge growth potential especially for the manufacturing and renewable energy sectors.

Types of palm biomass generated include empty fruit bunches (EFB), palm kernel shell (PKS), palm oil mill effluent (POME), and palm kernel cake (PKC). The oil palm biomass components have different potential uses such as fuel for electricity generation, biochemical products, fertiliser and biofuel. Most implemented palm biomass projects are concentrated on the production of pellet, activated carbon, fibreboard, animal feed and organic compost.

16.5%

Domestic Investments

(RM188.1 mil)

RM1.14 bil

Total Approved Investments

80%

83.5%

Foreign Investments

(RM952.67 mil)

RM1.14 bil

Total Approved Investments

16.5%

Domestic Investments

(RM188.1 mil)

83.5%

Foreign Investments

(RM952.67 mil)

31%

Global palm oil output

Malaysia is the second-largest producer and
exporter of palm oil worldwide, accounting
for 31 per cent of global output.

14

Approved Projects

A total of 14 projects with investments
amounting to RM 1.14 billion were approved
in 2019.

675

Job Opportunities

The projects approved in 2019
are expected to create 675 new jobs.

Sources of Palm Biomass

Oil Palm Fronds (OPF)

Oil Palm Trunk (OPT)

Empty Fruit Bunches (EFB)

Mesocarp Fibres

Palm Kernel Shells (PKS)

Palm Oil Mill Effluent (POME)

Malaysia has developed into one of the most exciting destinations for biomass-based investments in the entire biomass value chain; from upstream to downstream, manufacturers to traders and supporting ecosystems. Our competitive advantages have helped position the country as a regional Biomass Processing Hub for high value downstream applications. We welcome more companies to invest in technology-intensive and innovative biomass ventures which are sustainable and globally competitive.

MIDA promotes the following manufacturing activities in this sub-sector:

processing of agricultural produce, agricultural waste or by-products
recycling of waste such as toxic and non-toxic waste, chemicals and reclaimed rubber

Government Support

Companies involved in the processing or utilisation of biomass to produce value added products are eligible for the following tax incentives:

Pioneer Status (PS) with income tax exemption of 70%-100% of statutory income for 5-10 years.

Investment Tax Allowance (ITA) of 60%-100% of qualifying capital expenditure incurred within a period of 5-10 years. The allowance can be offset against 70% of statutory income in the year of assessment.

Companies in this industry are also entitled to the following Reinvestment Incentives:

Pioneer Status (PS) with income tax exemption of 70% of statutory income for 5 years.

Investment Tax Allowance (ITA) of 60% of qualifying capital expenditure incurred within a period of 5 years. The allowance can be offset against 70% of statutory income in the year of assessment.

Our Investors' Highlights

MYBiomass Sdn. Bhd. (“MYBiomass”) was formed to capitalise on Malaysia’s existing strengths in the oil palm industry and untapped opportunities from biomass, for technological and economic gains. We aim to attract the anticipated full-scale commercialisation of renewables or green technology R&D by global technology companies.

- MYBiomass Sdn. Bhd.

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Get Started

MIDA provides comprehensive support to your business as you consider the competitive and comparative advantages Malaysia has to offer for your investment. Explore our dedicated resources, wide range of facilities or consultation services to assist you in expanding your operations here.

Learn more about the essential forms and guidelines to help you get started on your journey in Malaysia’s manufacturing sector.

Learn More

Submit your application for a Manufacturing License or other incentives here.

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