Food Technology – Palm Biomass

Palm Biomass

Malaysia has an estimated total of 5.89 million hectares of oil palm plantations that produce approximately a total of 94.7 million tonnes of oil palm biomass. The oil palm industries produce an enormous quantity of lignocellulosic biomass in the form of large leaves of palm tree or pruned fronds and oil palm trunk (OPT) and Oil Palm Frond (OPF) at the plantation site. In addition, the processing of fresh fruit bunch (FFB) in the palm oil mills generate biomass materials such as empty fruit bunch (EFB), palm kernel shell (PKS), palm kernel cake and mesocarp fibre (MF).

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.

71%

Domestic Investments

(RM647.7 mil)

RM909.6 mil

Total Approved Investments in 2024

80%

29%

Foreign Investments

(RM261.9 mil)

RM909.6 mil

Total Approved Investments in 2024

71%

Domestic Investments

(RM647.7 mil)

29%

Foreign Investments

(RM261.9 mil)

25

Approved Projects

1,151

Job Opportunities

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 one of the most exciting destinations for biomass-based investments in the region with numerous technical/strategic-level visits by reputable international investors and technology partners to explore investment opportunities in renewable power generation, bio- pellets, 2nd generation advanced biofuels and biochemical products. 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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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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