SOPPOA celebrates 12th-year milestone

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SOPPOA makes a courtesy visit to the Chief Minister’s office in 2017 with Chief Minister Datuk Patinggi Abang  Johari Tun Openg.

KUCHING: Since the formation of Sarawak Oil Palm Plantation Owners Association (SOPPOA), 12 years ago on December 11, 2008, the association has grown and transformed into a premier plantation organisation in Sarawak as well as in Malaysia

It is now widely regarded as one of the key body spearheading the development of the palm oil sector in Sarawak.

In Sarawak, it has 99 registered memberships comprising of the majority of plantation companies of various sizes, including government agencies and independent small holders.

SOPPOA and MPOB research and development seminar in Miri.

SOPPOA’s members spans over the whole of Sarawak covering almost 1.02 million hectares of oil palm, 58 mills, four refineries, one biodiesel plant.

The capital outlay and current value of member companies runs into just over a RM100 billion which covers the upstream, midstream and downstream activities of the industry and also ranks second in jobs creation after the government sector in Sarawak.

SOPPOA makes a donation to SDMC.

Palm oil plantations in Sarawak produce 4.24 million metric tonnes of crude palm oil and generate an income of RM 8.9 billion for year 2019 of which with a return of 55 .2 per cent to the government in the form of taxes and levees over the gross PBIT, making it a reliable government revenue provider despite of global financial and economic crisis over the years.

The constitutional structure of SOPPOA comprises a fully elected executive council with strong stewardships starting from Datuk Amar Abdul Hamed Sepawi, chairman of Ta Ann Group of Companies as its inaugural chairman to current chairman, Tiong Chiong Ong, an executive director of Rimbunan Sawit.

The council is run by a secretariat team by a professional chief executive officer with sound knowledge of the plantation industry.

SOPPOA secretariat is also supported by five heads of committees overseeing government affairs, human resources, research & development, sustainability and media/communication and two senior advisors and a chartered accountant consultant firm.

SOPPOA fully supports the government’s policy in sustainable oil palm development and has achieved a credible 94 per cent Malaysian Sustainable Palm Oil or MSPO certification as well as attaining 62 entities of Supply Chain Certification Standards or SCCS is a clear indication of its full commitment to protect humanity and the environment in its sustainable business undertakings.

SOPPOA strongly upholds the value of “No Deforestation, No new Peat plantings and No Exploitation of its employees” or NDPE and advise members to be duly practicing at all times.

SOPPOA biggest challenge today is the set-backs posed by the current Covid-19 pandemic and the economic meltdown that follows which has limited operations and normal production.

The plantation sector, being an essential service, still continues to operate to keep the country’s food security stable by supplying the much-needed food and non-food products derived from palm oil as well as exports.

The industry also plays a vital role in providing much needed plantation jobs to the public.

SOPPOA appreciates and extend its gratitude to Sarawak Disaster Management Committee (SDMC) and National Security Council (MKN) for allowing plantation companies to continue operating under strict SOP.

The move to self-lockdown by SOPPOA with strict in-house SOPs apart from the government’s SOPs played an important role to prevent the spread of Covid-19 and has proven effective so far.

In time of need and national service, as part of CSR, SOPPOA also took the initiative to raise RM530,000 for SDMC to assist in the fight against Covid-19 and help the poor and needy through the generosity of its members.

SOPPOA has played an important role and pledges it will continue to work closely with all related government agencies to support government policies by providing feedbacks, proposals, fiscal planning and development.

In Sarawak, SOPPOA is considered the backbone of the state agricultural sector especially for agro-commodity activities. It works in solidarity and tandem with the government by regularly and actively participating as stakeholder with various state agencies, notably MANRED, TROPI, DOA, NRED MUDeNR, SEAC and others to support, give inputs, chart out or formulate, proposals, strategies to synergise government policies, planning and implementation.

On the federal government level, much engagement has been carried with the federal ministry’s agencies by representing Sarawak oil palm plantations in all matters affecting the plantations by sitting in important making decision steering committees or as stakeholder invitation with MPOB, MPOC, MPOCC, MOHR, DOE, KDN, MIDA, MITI and others.

Matters relating to policies, licensing, marketing, promoting, certification & compliances, trainings, research & development, funding, commercialisation of projects, mechanisation & automation, strategic and fiscal planning and forefront wise resolving SOPPOA members issues.

SOPPOA plays a key role in conveying and showcasing Sarawak’s plantations’ issues, concerns and provide solutions.

Periodically the association also makes press releases to voice the industry’s opinions and provide facts to highlight and protect the interests of its members and address pertinent issues including constructive recommendations in line with the ultimate aim to advance the Sarawak palm oil industry in a sustainable manner.

SOPPOA works in close partnership with other plantation associations such as MPOA, EMPA, POMA, PORAM, MEOA, NASH, SALCRA and DOPPA and other stakeholders on a win-win approach with regards to the betterment and advancement of the plantation industry.

SOPPOA is also a council member and plays a part in the well-recognised Sarawak Business Federation which represents more than 80 per cent of the business community in Sarawak.

SOPPOA members collaborate with TROPI, MPOB, DOA, MPC on R&D works on issues of low yields, P&D, peat soils, pollination, palm nutrition, mechanisation, other digital technologies to enhance the yields and resolve these issues apart from ongoing other negotiations and collaboration with local universities and institute of higher learning to pursuit technology and knowledge advancements.

Seminars, forums and trainings were also held to update members on R&D advancements and commercial applications.

The association regularly engages with related Federal Ministers, Chief Ministers and Deputy Chief Ministers to highlight unresolved issues with government agencies by giving proposals with valid justifications or working papers which bring benefits the government, the plantation operators and the public.

In some cases, such legislative matters on SOPPOA appeals were even brought to a sitting Parliament by the ministers to be debated about and resolved, which is greatly appreciated.

The well-being of the plantation industry and its interests are actively pursued and advanced by SOPPOA which is thriving and gaining momentum with more new members joining the fold to support this association in its mission to ensure continued growth and success of the industry.

SOPPOA’s upcoming 12th-year anniversary augurs well for its members with the rising crop production and favourable CPO prices of RM3,000 to RM3,300 per metric ton even amidst a pandemic.

It is also worth noting that the pandemic is still well under control in Sarawak, under the purview of SDMC.