What is the purpose of the RM30 million from the increased palm oil cess?

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The RM30 million from the increased palm oil cess will support the establishment of the Mechanisation and Automation Research Consortium of Oil Palm (MARCOP).

This funding, collected from the newly increased palm oil cess, will complement a RM30 million matching grant previously allocated by the government in Budget 2021. The combined funds are specifically earmarked to bolster the creation and operations of MARCOP, an initiative designed to advance technological adoption and mechanisation within the oil palm sector.
Enhancing Technological Adoption and Mechanisation

The primary objective of MARCOP, supported by this RM30 million allocation, is to significantly enhance the use of technology and farm mechanisation. This focus aims to optimise operational efficiency, particularly in the harvesting of oil palm fruits, and critically, to address persistent labour shortages within the plantation sector. The initiative seeks to leverage innovation to overcome these long-standing industry challenges.
Supporting International Advocacy and Market Development

Beyond domestic operational improvements, a portion of the cess collection is designated to finance the Council of Palm Oil Producing Countries (CPOPC). The CPOPC plays a crucial role in jointly addressing international challenges, including concerted anti-palm oil campaigns and discriminatory practices by entities such as the European Union concerning palm oil-based biofuels. This funding ensures continued efforts in global market defence and promotion.
Funding Research, Development, and Sustainability Initiatives

Furthermore, the revenue generated from the cess will be channelled into financing new technologies emerging from research and development activities. It will also support market incentivisation efforts undertaken by the Malaysian Palm Oil Council, bolster the Malaysian Sustainable Palm Oil (MSPO) Certification, and provide targeted support for smallholders. These initiatives collectively aim to enhance the global competitiveness and sustainability of Malaysia's palm oil industry.

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What is the purpose of the RM30 million from the increased palm oil cess?

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