Business Finland invites Finnish companies to join a trade mission to Malaysia on 7-11 October 2024 to learn and take advantage of the new opportunities in the rapidly developing forestry and palm oil sector that Malaysia has to offer.
This visit will offer the opportunity to meet potential buyers directly and learn about emerging needs both from the forestry and palm oil market. The industry is now fast expanding towards industry tree plantation, mechanization and there are newly emerging needs for digitalization. Whereas for the palm oil sector, factors such as sustainability targets; affected productivity due to scarcity of labor are pushing the industry towards mechanization and the use of digital means rapidly. There is a need for Finnish solutions in solving the challenges in upstream and downstream natural forest operations, plantations and palm oil plantations and there are also very attractive co-development initiatives.
The forestry sector contributes significantly to Malaysia’s economy. Timber exports continued to grow to over RM23 billion (EUR 4.7 bn) in 2022, marking a continuous growth since 2020 and an increase of 3% from 2021. Malaysia's forestry industry is rapidly advancing towards mechanization, automation, and sustainability, creating an array of market opportunities for Finnish companies.
In 2022, the gross domestic product from palm oil was estimated to be 36 billion (7.2 billion Euros) (approximately 2.7% of GDP). The country's oil palm industry suffered a loss of export value of RM7.9 billion (1.6 billion Euros) a year following a shortage of nearly 40,000 workers in the commodity plantation sector. With a focus on the palm oil industry and smart forestry, advanced technologies such as satellites, precision agriculture, sensors, and monitoring systems are being implemented to enhance efficiency, productivity, and environmental sustainability. There is a pressing need to co-develop solutions for palm oil value chain for example, harvesting mechanization, value added processing of fibers, biomass to energy, digital and AI solutions for harvesting planning, identification of ripe fruits, palm trunk’s logistics, etc.
The need for smaller and more agile energy groups in forestry and palm oil industries provide another opportunity for Finnish companies to participate in these rapidly growing industries. Possible effects due to the EUDR traceability requirements can also trigger needs that can be solved by Finnish know how. See more information on why Malaysia here.
Participants will engage with potential buyers and key interlocutors in the Malaysian forestry sector, including Federal and State Governments, Forestry Departments and Malaysian Timber Councils, Timber Associations and Concessionaires as well as captains of industry such as Sime Darby. In addition, on-site visits to forest plantations in Sabah and Sarawak, palm oil plantation and a bespoke program at the International Greentech and Eco products Exhibition and Conference, IGEM 2024, will be facilitated. IGEM serves as an ideal platform for solution providers and green energy businesses to tap into the fast-expanding ASEAN market by showcasing the latest innovations to policymakers government and company representatives, investors, academics, and industry experts.
We are currently exploring the possibilities of having a government official to lead the delegation.
Who should attend?
This visit is targeted towards Finnish companies in the field of forestry and plantation value chain, smart forestry including forest machinery as well as companies that provide IT, digital and AI solutions for better forest and plantation management. We are also bringing together Finnish companies with interests in palm oil co-development initiatives.
Practicalities
To cover the expenses of arranging the visit to Malaysia during 7-11 October 2024, Business Finland will charge a participation fee.
- Micro businesses and SMEs: EUR 1020 + VAT per person
- Major companies: EUR 1200 + VAT per person
Business Finland will invoice the participation fee after the visit based on the actual costs. The invoiced fee will not exceed the amounts mentioned above. Kindly note that the participation fee does not include flights or accommodation of the participant nor meals outside the business delegation program.
