Persatuan Penapis Minyak Sawit Malaysia (The Palm Oil Refiners Association of Malaysia)

INTRODUCTION

Palm oil refining in Malaysia emerged in the country's industrial scene only in 1974. Prior to this time, only a few factories such as Lam Soon (M) Berhad, Lever Brothers (M) Sdn Bhd and Senawang Edible Oils Sdn Bhd, were refining some 10% of the country's total crude palm oil production. As such virtually all crude palm oil produced in the country was exported to industrialized countries like the EEC, USA, Japan and Australia.

The year 1974 marked the beginning of a succession of refineries which were set up throughout the country. Within two years, a total of 15 refineries were in operation, making Malaysia the largest palm oil refining country in the world.

Today, 3 decades after the inception of the palm oil refining industry, refined and processed palm oil accounts for almost 90% of the total palm oil exports. The rapidly increasing palm oil refining and fractionation capacity consolidated Malaysia's position not only as a leading producer, but also as a major marketing factor in the international trade of oils and fats. This position had been achieved through, among other factors, the stringent observance of quality control and the capability of local refiners to meet the high standards demanded by world markets. Much of the success of the industry was contributed by the fact that it was possible to open up new markets which were once dominated by other vegetable oils and fats. However, there is now a marked shift of concentration away from the industrialized countries to the non-traditional or developing countries such as India, Pakistan, China, Bangladesh, Egypt, Turkey and Saudi Arabia. Several Latin-American and African countries are also buyers of Malaysian palm oil.

Currently, there are 46 refineries in operation. A majority of the operating refineries are in one way or another associated with the oil palm plantation and milling sectors, or both. Some of the refineries have also tied up with manufacturers of specialty products and oleochemicals. The palm oil refining industry is today among the most important manufacturing sectors in Malaysia.

The growth and development of the palm oil refining industry in Malaysia have helped palm oil to achieve worldwide acceptance. In terms of exports, palm oil is currently the market leader accounting for about one third of the total world vegetable oils exports. Malaysia's contribution to the success of palm oil in the world market is impressive; nearly 70% or more palm oil produced and exported in the world today is of Malaysian origin.

Most refiners in Malaysia are members of The Palm Oil Refiners Association of Malaysia (PORAM). These refiners produce a wide range of processed palm oil products such as Refined, Bleached and Deodorised Palm Oil / Palm Olein / Palm Stearin, Cocoa Butter Equivalents/ Substitute (Lauric / Non-Laurics), Cooking Oils (Pure Palm Olein, Blended or Polyunsaturated) and many others.

PORAM was formed in 1975 primarily to present a representative voice to the Government and the trade in all matters affecting the industry. Being a trade association, PORAM is a voluntary, non-profit organization of competing and related business units in the Malaysian palm oil refining industry. Whilst its principal role lies in the promotion of the industry, the Association fully subscribes to the philosophy of fair trading practices, which it has pursued with a good measure of success.

OBJECTIVES

PORAM exists to meet the wide and varied needs of its members. Its principal objectives are:-