Oil Palm

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Land Use and the Oil Palm Industry in Malaysia
Abridged report produced for the WWF Forest Information System Database

LAND USE AND THE OIL PALM INDUSTRY IN MALAYSIA
Abridged report produced for the WWF Forest Information System Database

by Teoh Cheng Hai B-3-1 Tiara Tower, Mont’ Kiara Astana, Jalan 3/70C, 50480 Kuala Lumpur. E-mail: chteoh@tm.net.my

Report Produced Under Project MY 0057 ‘Policy Assessment of Malaysian Conservation Issues’ Project MYS 406/98 ‘WWF Partners for Wetlands, Malaysia: Kinabatangan Floodplain’

November 2000

This abridged report was originally produced for WWF Malaysia under the title "Land Use and the Oil Palm Industry in Malaysia" and has been adapted for the WWF International Forest Information System Database. This report is meant for reference purposes only. Any use of this report must receive the prior written permission of WWF Malaysia.

LAND USE AND THE OIL PALM INDUSTRY
IN MALAYSIA

TABLE OF CONTENTS Page TABLE OF CONTENTS EXECUTIVE SUMMARY LIST OF TABLES LIST OF FIGURES LIST OF ABBREVIATIONS 1. INTRODUCTION 1.1. 1.2. 1.3. 1.4. 2. Background Objectives Scope Approach i v vii ix x 1 1 1 1 2 5 5 5 13 16 16 17 21 22 23 23 25 30

THE OIL PALM INDUSTRY — FACTS & FIGURES 2.1. Palm Oil in the Global Oils and Fats Scenario 2.1.1 Present Scenario 2.1.2 Future Scenario Oil Palm in Malaysia 2.2.1 Planted Area 2.2.2 Production & Productivity 2.2.3 Contribution to the Malaysian Economy 2.2.4 Challenges for the Oil Palm Industry Oil Palm and the Environment 2.3.1 2.3.2 2.3.3 Awareness and Concern of the Industry Impact of Oil Palm on the Environment Environmental Management in Plantations

2.2

2.3.

i

3.

LAND USE BY OIL PALM 3.1. 3.2. 3.3. Present Land Use Future Land Use for Oil Palm Land Use in Relation to Conservation Areas 3.3.1 Priority Areas 3.3.2 Priority Areas — Peninsular Malaysia 3.3.3 Priority Areas — Sabah 3.3.4 Lower Kinabatangan Floodplains Land Use Options 3.4.1 Issues and Questions 3.4.2 Enhancing Productivity 3.4.3 Alternative Plantation Crops 3.4.4 Plantation Forestry and Agroforestry 3.4.5 Monoculture vs. Mixed Culture 3.4.6 Forests in Plantations Best Practices for Sustainable Development in Oil Palm 3.5.1 Identification of Best Practices 3.5.2 Land Use Planning 3.5.3 Land Evaluation 3.5.4 Palm Oil Mill Effluent (POME) Treatment 3.5.5 Environmental Management System

33 33 41 44 44 49 50 51 55 55 55 58 60 63 65 67 67 70 71 73 74 75 75 77 77 78 79 80 81 81 82 83 84 85 85 85 ii

3.4.

3.5.

4.

RECOMMENDATIONS FOR INTERVENTIONS BY WWF MALAYSIA 4.1. 4.2. Overview Partners for Wetlands — Kinabatangan Floodplains 4.2.1 Forging a Shared Vision 4.2.2 Flood Mitigation 4.2.3 Rehabilitation of Riparian Reserves 4.2.4 Minimising Water Pollution Promoting Conservation and Sustainable Land Use 4.3.1 Putting Forward the Case for Conservation 4.3.2 Policy on Land Alienation 4.3.3 Land Use Planning 4.3.4 Monitoring of Land Use Charges 4.3.5 Promoting “Forests in Plantations” Promoting Sustainable Development Practices 4.4.1 Closing the Productivity Gap

4.3.

4.4.

4.4.2 4.4.3 4.4.4 4.5.

Encouraging Implementation of Environmental Management Systems Promoting Best Practices Promoting Agroforestry

86 87 87 88 88 89 90 91 93 93 95

Partners for WWF Malaysia 4.5.1 Plantation Industry Organisation 4.5.2 Plantation Companies 4.5.3 Research Organisations & Universities 4.5.4 Consultants

5. 6. 7. 8.

CONCLUSION ACKNOWLEDGEMENTS REFERENCES APPENDICES Appendix II Appendix III Appendix IV : : : WWF Malaysia Land Use Survey Identifying Environmental Impacts and Assessment Matrix SES Advanced Integrated Wastewater Treatment System

iii

iv

Executive Summary
Driven by a strong global demand for oils and fats, the past few decades have seen a rapid growth of the oil palm industry in Malaysia. This has led to the conversion of large tracts of land for oil palm cultivation. The spread of oil palms has seen the clearing of many lowland...
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