PART A / BAHAGIAN A

QUESTION ONE / SOALAN SATU

Vision and mission statements are forms of organisational direction used in realising the
strategic management process in the organisation. Discuss the attributes that must be present in
a vision and mission statement. You need to provide ONE (1) example for each statement. (20
markah / marks)

ANSWER QUESTION ONE

Definition of Business Vision and Mission.

Understanding Business Vision
According to Wibisono (2006, p.43), a vision is a set of phrases that expresses the principles or
desires of an organisation for the longer term. A vision, on the other hand, can be defined as a
statement about how organisations and businesses want to be. Vision is also essential for
businesses to maintain organizational viability and achievement. According to Kotler, as cited by
Nawawi (2000: 122), vision is a declaration of the organizational goals demonstrated in services
provided, requires that must be acknowledged, a bunch of people that can be appointed, the
attributes gained, but also the expectations and beliefs of the future.

Understanding Business Mission

According to Drucker (2000: 87) A mission statement is the primary justification for an initial
move. The agency's stated goal, particularly at the firm level, decides the boundaries and
objective of the firm's operations. As a consequence, operation implementation is a realisation
that will enable an organisation to yield good solutions to satisfy the demands, passions, and
expectations of interested parties. (Prasetyo and Benedicta, 2004: 8)

The Importance of Business Vision and Mission

a.Vision Statement

Succession management begins with a vision statement. A strategic plan is frequently a simple
statement that answers the question, "What we'd like to be?" “How do we aspire to accomplish?”
All organizations describe important positions or great opportunities that may be achieved in the
future (Tripomo & Udan, 2005). However, such opportunities can only be achieved by while in
immediate future, earning money, diligently, and persistently pays off. A company's vision can
centralize, direct, motivate, unite, and even inspire a business to achieve superior performance.
The job of strategy formulation is to identify and predict the vision clearly (Keane, in David, 2006)

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b.Mission Statement

A mission statement is a statement of long -term goals that differentiates one company from
another. The mission statement identifies the scope of the company's operations in the product
definition and market. Answering the question “

What is our business?”, Describes the values and priorities of an organization and the scope of
current operations and the evaluation of market potential and future activities describes the
direction and future of the organization. The mission statement answers the question that
contains the reasons why this company exists (Well et al., 1999)

i. Who are we?

ii. What do we do?
iii. For whom do we do it?
iv. Why do we do?

Mission statement function:

i. Set company goals.

ii. Coordinate business actions.
iii. State the company's goals.
iv. Creating a future for the company

Mission statement:

i. Impressive.
ii. Forcing.
iii. Customer -centered.
iv. Easy to memorize

According to Rarick and Vitton found that companies with a formal mission statement have a
higher rate of return on shareholder capital (ROE) than companies that do not have a formal
mission statement. According to Bart and Baetz (1998) discovered a link with both sustainability
strategy and operational commitment For a myriad of purposes, King and Cleland (1975)
strongly advise that organizations build a professionally worded strategic plan:

i. Ensure the basic objectives of the organization.

ii. ii. Establish a foundation or requirement for distributing financial goals.
iii. Creating a general organizational condition or climate.

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 iv. Identify the goals and direction of the organization.
v. Facilitate goal translators into work structures that involve assignment to elements of
responsibility in the organization.
vi. Provides the organization's basic goals for translating goals in a position that enables
period, expense, and operating conditions to be assessed and monitored
vii. According to Reuben Mark, former CEO of Colgate, keeping a clear mission must
always be acceptable internationally

Characteristics of Business Vision and Mission

a) Declaration of attitudes and views:

i. Formulation and thinking of alternative goals and strategies without reducing

management creativity.
ii. Bring together differences effectively and have an appeal for stakeholder.

b) Customer Orientation:

i. Identify just what organisation is or hopes to accomplish.

ii. Restrictive sufficiently preclude some companies.
iii. Wide to even permit for project vision.
iv. Differentiate one organisation from a certain
v. Serve as a tool for developing present and projected events.
vi. Those are explained in a relatively precise description that many employees in the
company understand.

c) Social Policy Declaration

i. The organization's responsibility to customers, the community, the environment,

underprivileged community groups
ii. Improving the public image of the company

Ever since appropriate services can be provided and instated, a solid plan process should be
followed. The method always had to build up a stated purpose is to choose some many
publications about both the strategic plan and have the whole of management team reviewed
them, with the news items serving as previous knowledge.. The mission statement development
process reflects a good possibility for tacticians to satisfy the demands they require across all
top executives. Some organisations are using the framework for developing a strategic plan.:

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 i. Manager group discussion to develop and modify.
ii. The services of an external consultant or facilitator to manage the process and create the
language design.

The best once the declaration has reached its final version, the choice to converse the purpose
to all management teams, personnel, and interested stakeholders of an organisation is required..
And made a video recording to explain the mission statement to be developed. According to
Campbell and Yeung emphasise the importance of the procedure. The development of a
mission statement must create an "emotional bond" and a "mission sensation" between the
organizations and employees. And Campbell and Yeung too distinguishes between objectives
and goals According to the definition, a vision is “the feasible and attractive present outcome of
an organisation,” which contains specific objectives, whereas objectives are much more
correlated of actual practices and circumstances.

Mission Statement Components

Mission statements can and do vary in length, content, form, and specificity. Most strategic
management practitioners and academics consider an appropriate assertion to have nine
features or elements So even though strategic goals are frequently another very noticeable and
explicitly accessible part of the strategic planning procedure, it is critical to provide all of the
following important elements:

i. Customers- Who are the company's customers?

ii. Products or services- What are the main products or services of the company?
iii. Market- Geographically, where do companies compete?
iv. Technology- Does the company implement the latest technology
v. Concern for sustainability, growth, and profitability-Is the company committed to growth
and good financial conditions?
vi. Philosophy- What are the foundations of the company's beliefs, values, aspirations, and
ethical priorities?
vii. Self-concept- What are the special capabilities or competitive advantages of the
company?
viii. Concern for public image- Is the company responsive to social, community, and
environmental thinking?
ix. Concern for employees- Are employees a valuable asset to the company?

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Benefits of Business Vision and Mission

Some of the benefits of the business vision and mission include the following:

i. Bringing people along the same dream.

ii. Able to help someone to work together in an activity.
iii. Assist a person in making decisions that are appropriate to the purpose.
iv. Be the foundation of business planning that will be developed.
v. Challenge existing competitors in the sustainability level to innovate

Write a Good Mission Statement

i. Examples of Missions from Two Companies are:

a) PepsiCo's mission is to increase the investment value of our shareholders. We do this

through sales growth, cost control, and prudent sources of investment. We believe the
success of our business depends on offering quality and value to our customers'
consumers; provide products that are safe, healthy, economically efficient,
environmentally friendly; and provide good results to our investors while still striving to
achieve high standards of integrity.

b) Dell Computer Mission is to be the most successful computer company in the world in
terms of providing the best experience for customers in the markets we serve. To do so,
Dell will meet customer expectations for the highest quality; advanced technology;
competitive prices; corporate and individual responsibilities; best in class service and
support; flexibility to make goods in accordance with the customer's ability; be a good
company in doing business; financial stability.

Examples of Cases in the Use of Vision and Mission in Organizations

Here are two missions coming from two companies that do business in different fields, Ben and
Jerry’s which is an ice cream company, while Barret Memorial Hospital which is engaged in
healthcare. Identify whether the two companies have a good mission in accordance with the
Nine Essential Components of the Mission Statement

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1. Ben and Jerry’s Mission is making, distributing, and selling the best quality natural ice cream
and related products with a wide variety of innovative flavors made from Vermount dairy
products. To run a business with a sufficient capital foundation for profitability, to maintain
profitability, and to provide job prospects and incentives to our workers. To run a business that
aggressively recognises the essential role that businesses perform in the social order by
pursuing creative ways to make life better of the broader group, regional, and international.

2.Mission of Barret Memorial Hospital is to operate high quality health facilities, providing
adequate services to the people of Beaverheas Country and the surrounding area. Services are
provided with primary attention to patients, medical staff, hospital staff, and the community.
Barret Memoriam Hospital takes a strong leadership role in the coordination and development of
health -related resources in the community.

Conclusion

Each organization has a unique purpose and reason for existence. This uniqueness must be
reflected in the vision and mission statement. The nature of the vision and mission statement
can be represented in a company's competitive advantage or disadvantage. Organizations seek
sensitivity to goals when strategists, management, and employees develop and communicate a
clear business vision and mission. A good mission statement reveals customers, products or
services, markets, technology, concern for sustainability, growth, and profitability, philosophy,
self -concept, concern for public image, and concern for employees. write a mission statement.
As the first stage in strategic management, the vision and mission statement provides direction
for all planning activities. A well -designed vision and mission statement is essential for strategy
formulation, implementation, and evaluation. Developing and communicating a clear business
vision and mission is an often overlooked job in strategic management.

References
Norman, G., Bordage, G., Page, G., & Keane, D. (2006). How specific is case
specificity?. Medical education, 40(7), 618-623.

Plans, B. Colgate-Palmolive Company.

Bart Baetz, C. K. M. C. (1998). The relationship between mission statements and firm
performance: An exploratory study. Journal of management studies, 35(6), 823-853.

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King, W. R., & Cleland, D. I. (1975). The Design of Management Information Systems an
Information Analysis Approach. Management Science, 22(3), 286-297.

QUESTION TWO / SOALAN DUA

Political management is one of the main dimensions in the Strategic Triangle to formulate
strategies and policies in the public sector. Discuss comprehensively on political management
and provide TWO (2) examples related to this topic.

ANSWER QUESTION TWO

Introduction
The government civil service is faced with a large number of major problems that require
structural transformation and paradigm shift in order for it to remain relevant and respected.
Employees in the public sector must exceed a certain level of competence and job performance
to achieve this goal. Society's expectations of the services offered are high and failure to obtain
efficient and friendly services will give a negative impression of the performance of public
organizations (Najib & Halimah, 2009). This statement clearly shows that good work
performance is a major pillar in the organization regardless of public or private services in
Malaysia or in the world. The achievement of goals in public organizations depends on the role
of public policy makers whether at a low, medium or high level.

Thus with reference to the study conducted by Mark Moore who has pioneered the research of
community values (in a singular form, now presented as a stream of social well -being) (1995,
2009) is made the basis of evaluation. Its general concerns are similar to theories of public value
(plural), i.e., ‘political reduction as an organization’ (Moore, 2009). However, evaluative
considerations of policy decisions are more important to him than organizational identity.
Although the rationale for resource allocation is collectively agreed upon, there is a feeling that
the values of public entities and their occupations are not recognized or adequately stated in the
current valuation framework. Public administrators, in general, are asked to think of new ways to
generate and validate value creation (a term we will return to). Public value emphasizes identity,
while public value theory focuses on generational and delivery conditions. For convenience, this
position will be referred to as ‘public value identifier’, or PVI; and ‘public value production’, or
PVP (PVP). To what extent does this position make it the vocabulary and practice of

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government? Currently, PVI theory is mostly a topic of scientific interest. The essence and
direction of public values (PVI) and public value (PVP) differ, as does the extent to which they
have infiltrated practise. However, they both separate itself from the New Public Management
(NPM alleged)'s restricted. As a result, they are clearly related candidates for a new post-NPM
analysis of politics and demand consideration within a cohesive assessment. The argument here
is that while a renewed focus on values issues is desirable and relevant, both PVI and PVP
theory have flaws. New pragmatic arguments are currently being utilised to criticise a trend
toward pluralism and generalization in PVI theory. A different viewpoint is presented, based on a
contextual reading of values. We then critique Moore's evaluative definition of public value in
light of modern pragmatic thought, which emphasises justification processes.

Public Values: A New Pragmatist

Actors, values, and objects According to McDowell and Fletcher (2004), society requires ethical
public employees who value justice, equality, and politeness as personality features,
orientations, or beliefs. These are the requirements for admission to the common empire's
exclusive stage. Public workers, on the other hand, are expected to be firm or ruthless while
making judgments that have often fatal implications. The settings in which public action unfolds
are what demand these attributes of people and measure the success of their actions. Situations
give birth to actions. The modern realists play an important role here by refusing to assign
enduring attributes to people. Values, throughout this opinion, mean being able when considered
as a person's "absolute" (naturalistic) attitude.

Moore (2013), ( argued gently that the concept of Public Value cannot be premised on value
(quantities), because the concept itself is ideological. The potential to be productive and
competitive in putting through public acts, independent of their direction, should be measured as
Public Value, not just the substance of public activity such as:

a. sociopolitical validity;
b. operating and economic continuity;
c. objective and capacity to deliver Public Value

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Figure 1. Moore’s Strategic Triangle (Moore)

This means that: (a) management goals in the government service should be based on the
organisation's role in the development of activities and rendering of facilities for its community
members, consumers, and recipients, while maintaining high quality standards in the most
obvious sense; and (b) strategic decisions must be justified by and politically viable within the
eco system in which the organisation operates. (c) Strategic decisions must be economically
affordable viable over time in context of multiple capabilities. If one of these aspects is missing,
you may make decisions that turn out to be erroneous over time.

Leaders are involved with maximising the convergence of the strategic triangle's three factors in
order to create value. Political leaders and the companies they lead is always at the forefront of
creating public value, not only by utilizing available resources that generate revenue to their
communities in an organized manner, but also by achieving society and the environment goals.
The servant leadership should be the guarantee and protector of the public good, prioritising the
wellbeing of her/his civilians over any personal gain.

As a result, if a civil service manages in rationally managing existing content and developing the
most of its intangibles in a way that meets the social demands of users and investors, Public
Value is created. Public throughout general, who the resources are directed independent of
whether they are used directly, should be taken into account. This method seeks to reconcile the
narrowly corporate logic of managerial activity appraisal with a broader analysis of the
organization's actual capacity to achieve its organisational objectives.

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Conclusion

Government collaborations are also necessary to work on behalf of the state to achieve a wide
range of social and environmental goals. In this sense, they fit into the popular definition of
sustainability, which places socioeconomic, social, and environmental considerations or
objectives at the core of the interrelated "pillars". Measuring performance aids in the utilisation of
capital, the selection of acceptable control measures, and the provision of accurate information
to public about the outcomes and costs of public services. Public are demanding more and more
from both the corporate and public sectors in terms of how they serve to durability [188], but
there is still a lack of literature on how to conceptualise Public Real value of conservation.

References
Moore, M.H. Selected Writings; Routledge, Taylor & Francis Group: Abingdon, UK, 2013.
[Google Scholar]

Moore, M.H. Creating Public Value: Strategic Management in Government; Harvard University:

Cambridge, MA, USA, 1995. [Google Scholar]

Secundo, G.; Ndou, V.; Del Vecchio, P.; De Pascale, G. Sustainable development, intellectual
capital and technology policies: A structured literature review and future research
agenda. Technol. Forecast. Soc. Chang. 2020, 153, 119917

Greve, C. Ideas in Public Management Reform for the 2010s. Digitalization, Value Creation and
Involvement. Public Organ. Rev. 2015, 15, 49–65.

PART B / BAHAGIAN B
SOALAN TIGA / QUESTION THREE (50 MARKAH/ MARKS)
This section refers to the organisational analysis: Malaysian Palm Oil Board (MPOB). Please
visit the MPOB website at https://mpob.gov.my/ before performing the assessment.

ANSWER QUESTION THREE (a)

a) Comment on the relevance of MPOB’s organisational direction with its existence.

(10 markah / marks)

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Introduction
Palm Industry is a vital business to the economic development. The agricultural industry
environment is divided into three parts: upriver, medium, and runoff. The surface water area
consists of cultivation actions, the middle sector of cultivation and assembly, and the ground
water segment of the producing of final product and benefit items.

In discussing the suitability of the direction of the MOPB organization shows that the
achievements of MOPB are very encouraging and have been successful. This can be seen
through some of the results that have been shown by MOPB. Among the achievements in 2019,
the palm oil industry has contributed 234.48 million tonnes, which is 32 percent of world
vegetable oil production. Globally, Malaysia is the second largest palm oil producer and exporter
at 26 per cent and 34 per cent respectively percent compared to other palm oil producing and
exporting countries.

In terms of international trade, the Malaysian palm oil sector appears to be export-oriented.
Importing and consumer countries all over the world, on the other hand, place a premium on
agricultural products produced in a sustainable manner. Several agri-food industries set Certified
Sustainable Palm Oil (CSPO) to meet buyer demand as proof of sustainability in the palm oil
supply chain.Therefore, it is important for Malaysia to gain confidence international consumers
against sustainable palm oil production from Malaysia.

Definition of sustainability
The Brundtland report published by the World Commission on Environment and Development
(WCED) in 1987 introduced the concept of sustainability with the definition of sustainability as
development to meet the needs of the present without compromising the ability to meet the
needs of future generations.

Sustainability is encapsulated in three pillars: environmental, societal and economic well -being.
In other words, sustainability is a concomitant developmentwith the environmental, social and
economic well -being of the community.

Therefore, Malaysian Sustainable Palm Oil Certification (MSPO) Malaysian Sustainable Palm Oil
Certification (MSPO) needs to be implemented by all Malaysian palm oil industry players to
increase the credibility of Malaysian palm oil products that are oriented to the international
market. This action is very timely at this time because the country's palm oil has received
criticism and criticism from foreign countries.

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The expertise in implementing this MSPO is the result of MPOB's involvement with sustainability
experts, SIRIM Berhad and the national palm oil community. The MSPO contains seven
principles that reflect the sustainability needs for smallholders, plantations and oil palm mills.
These seven principles emphasize the commitment and responsibility of management;
transparency; compliance with legal requirements; social responsibility, health, safety and
working conditions; environment, natural resources, biodiversity and ecosystems;
implementation of codes of good practice; and the development of new plantings.

The government's determination to help smallholders can be seen through the Ministry and
MPOB moving actively to ensure that all private smallholders obtain MSPO certification. Private
smallholders under the Sustainable Palm Oil Group or SPOC will be assisted by TUNAS Officers
to implement Good Agricultural Practices for the preparation of MSPO certification of oil palm
plantations in groups.

Therefore, with these very relevant actions, MOPB is seen to be very much in line with the
direction outlined by MOPB, namely by setting an organizational strategy to increase the
country's high income through the country's palm oil exports.

References

Sinar Harian. (2020). India expected to return Malaysian palm oil imports (sinarharian.com.my)
Sinar Harian. (2021). Major contribution of Malaysian palm oil (sinarharian.com.my)

b) Based on the above discussion, identify and explain FOUR (4) opportunities and FOUR
(4) threats faced by the MPOB. (20 markah / marks)

ANSWER QUESTION THREE (b)

Introduction
Oil Palm is the most important crop in Malaysia where it contributes significantly to the national
economy. The cultivation of oil palm is done by the plantation sector as well as smallholders
where it reaches millions of hectares throughout the country. Among the main products of oil
palm is of course palm oil which is the largest contributor to international trade. However, despite
the campaign to tarnish palm oil by some Western countries, the commodity continues to supply

12
about one-third of the world's fat needs. Malaysia itself has exported palm oil to almost 160
countries with China, India and the European Union (EU) as its largest markets.

According to Ahmad Parveez Ghulam Kadir (2020) the Director General of the Malaysian Palm
Oil Board (MPOB) stated that the demand for Malaysian palm oil is expected to continue to
increase in line with the increase in world population which will increase to nine billion people by
2043. Scientists in the oil palm crop also shared the success of MPOB in commercializing the
research results of the agency in an effort to improve quality and production thus increasing
farmers' income, especially in the current uncertain situation of palm oil price fluctuations.

Opportunities And Threats Faced By The MPOB

By discussing the opportunities MPOB had in regulating palm oil, it was discovered that the
organisation had successfully executed a good strategic strategy. This can be seen when it was
reported that the price of Malaysian Crude Palm Oil (CPO) jumped on 21 September 2020,
which is one of the highest since the Covid-19 epidemic hit the world starting in 2019. However,
the important thing is the government's action through MPOB in controlling and identifying
factors. -the main factors that affect the fluctuation of palm oil prices in the country. MPOB also
stated that since August 2020, palm oil prices have been stable. The price of palm oil reached
RM3,111 per tonne in January 2020, which is the highest in 2020 so far.

Despite this, the price reduced in May 2020 due to Covid-19 and has recently risen to RM3,000.
On October 13, 2020, the CPO price is RM3050.50 per tonne. The price of palm oil in the local
and international markets is always influenced by fundamental factors and market sentiment. It
is reported that the increase in demand for palm oil will help increase the price of CPO in the
market and vice versa. Although many countries still practice movement control because of
Covid-19 but the need for food is always there.

The main factor contributing to this price increase was the increase in palm oil exports of up to
two percent in September compared to August 2020. The increase in exports was due to
purchases by India, Bangladesh, South Africa, the Philippines and Turkey.

The second factor is the low CPO production in October 2020 is due to the effects of La Nina
which brought heavy rains which disrupted the harvesting activities and collection of fresh fruit
bunches (FFB) (Lyndon, N and Nurmahfuzah Razak, 2015). Analyzed where among other
factors is the increase in the price of soybean oil. On December 6, 2019, it was seen that this
was the first time that the price of palm oil was US $ 3 higher than the price of soybeans. In the
near future, it is reported that China will increase its soybean purchases and this will increase its

13
price. The increase in soybean prices will make palm oil products more competitive. Several
government efforts to maintain good relations with importing countries including China and India
have succeeded in increasing Malaysia's palm oil exports.

Besides, the government has been able to reduce the country's surplus palm oil stockpiles by
enacting policies such as the exemption of CPO export duties until December 2020. If in January
2020 Malaysia manages to reach RM3,111 per tonne then with export market sentiment and low
stocks, CPO prices are expected to reaching RM3,150 per tonne by the end of 2020. The price
of soybean oil being higher than the price of palm oil is one thing that has led to the possibility
that many foreign countries that anti -palm oil attacking palm oil producing countries have done
so. MPOB found it to be among the causes as well. That’s what’s happening now in Europe and
maybe even in the United States. Initially, it was found that palm oil was the second largest
producer and soybean was the world's leading food oil producer before 2006.

It was reported that in the 1980s and 1990s we were attacked by soy-related associations and
non-governmental organizations (NGOs) by saying that our palm oil is not safe to eat because of
its saturated fatty acid content and so on. However, in 2006 palm oil has become a major oil
producer. We are the world's leading supplier of edible oils which has reduced the role of
soybean oil. This is because it is found that soy is not our main challenge in Europe because the
country also has sunflower oil and corn oil. What happens is that our palm oil is cheaper due to
several factors. It is produced by the third world and this makes production costs lower while the
yield is eight times higher than soy. This gives an advantage to the country. Competitors cannot
use economic reasons causing them to use environmental, health and so on reasons to defend
their economy and business (Sheilyza & Zulkifli, 2020). Whatever this statement is supported
where in terms of mathematical figures, if the price of CPO is RM3,000 per ton, what should be
the price of a ton of fresh oil palm fruit on the farm ?. For the price of fresh fruit bunches (FFB), if
seen in the current market of CPO RM3,000 per tonne and the price of palm kernel at RM1,600
per tonne, the estimated FFB at the factory is RM30.94 sen for oil extraction rate (OER) or
equivalent to RM619 per tonne if the OER graded at the factory reaches 20 per cent. Both the
price of CPO and the price of kernel are seen to influence the price of FFB. Therefore, the higher
the price of CPO and palm kernel, the higher the price of FFB in the market.

However, the price of FFB at the farm is lower than the price at the factory door. This is due to
the price charged by FFB traders must be taken into account. The deduction rate charged by
these FFB dealers varies by dealer and region. For example, it was reported that for Peninsular
Malaysia, the deduction rate is estimated between RM30 to RM70 per tonne while in Sabah and

14
Sarawak, the deduction rate will usually be higher than in Peninsular Malaysia due to
geographical factors which cause higher costs to be borne by FFB traders.

The income of oil palm growers, especially Felda settlers, is severely affected every time oil
palm prices fall. How can their income be increased ?. Among the measures that can be taken
to increase income, for example for Felda settlers, is through income diversification such as food
or short -term activities, livestock and working full -time by doing business or working with
employers. Felda can also set a minimum price for fresh fruit bunches and reduce production
costs to RM150 to RM180 per tonne. In this way, profit margins can be increased. Now after 20
years of establishment, what are the significant achievements of MPOB in terms of research and
technological innovation in an effort to increase palm oil production ?. After 20 years of MPOB's
establishment, many achievements in the field of research and technology development (R&D)
have been gained for the upstream and downstream processes of palm oil.

With its commitment and determination to make Malaysian palm oil the best in the world, MPOB
can be proud of the success of technological innovations in creating and launching 675
technologies covering all sectors in the palm oil industry over the past 20 years. As much as 30
percent of the technology produced has been commercialized by industry. MPOB also uses
drone technology to control pests such as caterpillars in oil palm plantations. MPOB also
developed 47 technologies for farm mechanization and balanced fertilizer formulation, namely
MPOB F1, F2, F3, F4, F5, and F5 to increase yield and productivity.

In the meantime, MPOB stated that in the downstream food sector is always proactive in leading
efforts to strengthen and increase the competitiveness of the country's downstream palm oil
industry by intensifying R&D activities and providing added value to downstream palm oil
products. The latest technology developed is the production of margarine that is suitable for
room temperature and red palm oil food technology. Through continuous R&D, MPOB has now
succeeded in producing technologies and formulations of environmentally friendly and user-
friendly products. This includes surfactants for cleaning products, cosmetic products, soaps and
so on. Despite facing challenges when MPOB remains steadfast in producing quality products
even every time Western countries boycott palm oil. Although Malaysia has been accused and
denigrated and boycotted, this success and the advantages we have must be defended (Sarmila
et all, 2017). The cost of producing the country's palm oil is low and palm yield is high, and even
its various uses, especially the liquid and saturated parts. Some of the benefits of palm oil are a
challenge and competition for them. They will continue to issue whatever arguments to denigrate
our palm oil in order to defend their own economy and oil. In addition, the technology and

15
implementation of certification for Malaysian Sustainable Palm Oil (MSPO) makes our palm oil
the only one in the world that must be produced sustainably. By mandating MSPO and MPOB to
those directly involved it has helped over 500,000 smallholders.

References
Lyndon, N and Nurmahfuzah Razak (2015). The empowerment of Bidayuh oil palm
smallholders: A case study in Serian District, Sarawak. Malaysia J. Society and Space,
Vol. 11 (6): 36-46.

Sarmila, M S; Zaimah, R; Rusyda, Ramly; Novel, L; Rosniza, A C R; Nur Hanani Mansor; Zaki,
A; Nazirah, J and Khairul, A I (2017). The contribution of cooperatives to the social
development of oil palm smallholder communities. Malaysia J. Society and Space, Vol.
13 (3): 19-28.
Sheilyza, I (2015). Evaluation of Oil Palm Replanting (TSSPK) and New Oil Palm Planting
(TBSPK) of Smallholders under EPP1: Oil Palm NKEA. Proceedings of the National Oil
Palm Smallholders Conference, 2016. Ipoh, Perak.

Sheilyza Mohd Ishak and Zulkifli Abd Manaf (2020). Influence of knowledge, attitude and skill on
good agriculture practices of seedling assistance scheme participant toward oil palm
production in Sabah and Sarawak. Oil Palm Industry Economics J., 20 (1): 12-20.

c) Recommend TWO (2) strategies for MPOB in facing the future of palm oil industry.
Provide justifications for each recommended strategy.

ANSWER QUESTION THREE (c)

Strategies For MPOB In Facing The Future Of Palm Oil Industry

Currently, the Malaysian palm oil industry is capable of producing almost 20 million tonnes of
crude palm oil a year with a total export value reaching RM65 billion in 2019 (BERNAMA (2020).
This sector contributes about RM50 billion or 3.5 percent to Gross Domestic Product (GDP).
This year, we are targeting an export value of RM70 billion. From January to August 2020, the
total exports of the Malaysian palm oil industry recorded RM27.42 billion which has placed the
industry as one of the fourth largest contributors to the country's export earnings after electricity
and electronics, petroleum products and chemical products (MpOCC , 2019).

Malaysia needs to ensure that the palm oil produced will always be sustainable, sustainable in
the future. MPOB need to improve sustainability, productivity and quality because among the

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challenges we face besides European rejection is the issue of food security which is a serious
issue there (Fauziah et all, 2020). Now what really matters is that we cannot rely solely on
commodity production but need to diversify into high value downstream products. Looking at the
world population that will continue to increase, the need for palm oil will increase. Malaysia, as
the largest oil palm producing country, need to increase yields despite having limited land. As
much as one -third of the world’s fat and oil needs are met by palm oil, so our role is quite large.
In general, 160 countries import palm oil from Malaysia. Oil consumption is very high, almost all
over the world uses Malaysian palm oil.

For now, China, India and the European Union as our biggest markets. Many challenges we
face from those countries. What is important is that consumers will always increase, the world
population will increase and it is expected that by 2043 the total population will reach nine billion.
Fat requirements increase, so dependence on oils and fats will increase. However, we cannot
rely on India, China and the European Union alone for the palm oil market. Our achievements in
the first six to eight months of this year are not all from the previous countries, but also include
Turkey and the Philippines. Whatever it is how to strengthen existing markets and add new
markets like Africa can be a priority. Apart from the 10 largest importers of palm oil from
Malaysia such as India, China, the European Union, Pakistan, Turkey, the Philippines, Vietnam,
the United States, Iran and Japan, markets in the Middle East, Africa and Central Asia have the
potential to become consumers of palm oil. Unfortunately, the effects of PKP and Covid-19
slowed down the activity. It was also found that some countries received negative and
inaccurate information about palm oil.

In addition, in the global market strategy, it is proposed that MPOB place more emphasis on
identifying more new markets for local products. Competitive palm products, compatible with
consumer demand, sensitive to change demand and because of the international market should
always be given priority. To realize this goal, market development and research must be
enhanced with the help of new market information systems and strategic market network
information. Potential palm -based products should be covered, promotion, campaigns, publicity
through educational programs, international forums or through bilateral relations with importing
countries.

References

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BERNAMA (2020). palm: Ongoing efforts have put MspO on the international stage, accessed
7 August 2021.
Fauziah, A; Siti Mashani, A; Kamalrudin, M S; Khairuman, H; Mohd Shahrin, R, Balu, N and
Azman, I (2020). A comparative analysis of agricultural practices, costs and yields of pre
and post Malaysian Sustainable Palm Oil (MSPO) certification for independent
smallholders in Malaysia. Oil Palm Ind. Eco. J., 20 (1): 36-44.

MpOCC (2019). Annual Report 2019. Malaysian Palm Oil Certification Council (MpOCC)

MpOCC (2016). Presentation Entitled Malaysian Sustainable Palm Oil (MSPO) Certification
Scheme In Malaysia. European Palm Oil Conference (EPOC) .Warsaw, poland. 5-6
October 2016.

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