Food Technology – Palm Biomass

Palm Biomass

Malaysia sources biomass mainly from agriculture, oil palm, wood, and municipal waste. Annually, it produces 168 million tonnes, with over 80 million from palm oil. This bountiful supply offers substantial growth potential, especially in manufacturing and renewable energy.

Generated palm biomass types include Oil Palm Fronds (OPF), Oil Palm Trunk (OPT), Empty Fruit Bunches (EFB), Mesocarp Fibres, Palm Kernel Shells (PKS), and Palm Oil Mill Effluent (POME). These components have diverse potential applications, including electricity generation fuel, biochemical products, fertiliser, and biofuel. Projects often focus on producing pellets, activated carbon, fibreboard, animal feed, and organic compost.

47.5%

Domestic Investments

(RM41.0 mil)

RM86.3 mil

Total Approved Investments in 2022

80%

52.5%

Foreign Investments

(RM45.3 mil)

RM86.3 mil

Total Approved Investments in 2022

47.5%

Domestic Investments

(RM41.0 mil)

52.5%

Foreign Investments

(RM45.3 mil)

6

Approved Projects

A total of 6 projects with investments amounting to RM86.3 million were approved in 2022

For more statistics, please click here.

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 become a top destination for biomass investments across the value chain, from upstream to downstream, including manufacturers, traders, and support ecosystems. Our competitive edge has positioned the nation as a regional hub for high-value biomass processing. MIDA invites further investments in sustainable, technology-intensive, and globally competitive biomass ventures.

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. MYBiomass aims to attract the anticipated full-scale commercialisation of renewables or green technology R&D by global technology companies. For more information on how MYBiomass can support your investments, please visit our website at https://www.mybiomass.com.my/

- MYBiomass Sdn. Bhd.

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Additional information can be accessed here

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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.

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Company can submit application and track the application status online via MIDA InvestMalaysia portal at investmalaysia.mida.gov.my

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