Asia Palm Oil Magazine Jan-March 2024

Interview with AIREI Sdn Bhd

SURENDRAN Founder and Chief Executive Officer

Surendran is the Founder and Chief Executive Officer of AIREI Sdn. Bhd. He hails from a family associated with the palm oil industry, representing the third generation involved in both upstream and downstream aspects of the business. His forefathers were brought in by the British to work in the palm oil plantations.

Over the years, both his parents served under reputable palm oil organizations. Having been born in a palm oil estate himself, Surendran inherited the plantation knowledge and furthered his studies at Universiti Tenaga Nasional (UNITEN) and graduated with a Bachelor of Engineering majoring in Mechanical Engineering and subsequently his Masters in Chemical Engineering at Universiti Putra Malaysia (UPM).

His main goal was to pursue his passion in the palm oil industry, particularly the processing facilities. He currently runs a palm oil mill as well as a plantation. He is a certified Grade 1 Steam Engineer under the Department of Safety and Health (DOSH) Malaysia since 2012 and has more than 13 years of working experience in the field of palm oil milling. He is a qualified member of the Board of Engineers Malaysia (BEM), Institution of Engineers Malaysia (IEM), ASEAN Engineering Register (AER), and Institution of Mechanical Engineers UK (IMechE).

Surendran had always envisioned the Malaysian Palm Oil industry to grow at par with any other industry in terms of technology adoption. His active involvement in information technology back in university days and inborn passion for the industry resulted in the inception of AIREI Sdn Bhd which focuses on Big Data Analytics, Artificial Intelligence, and Robotics.

1. As a dynamic multinational company based in Malaysia and India, AIREI has established itself as a trusted partner in the palm oil sector. Tell us about AIREI’s background and achievements.

AIREI was founded in 2018 with a unique vision to revolutionize the palm oil sector through digitalization and automation. Our core competencies include Big Data Analytics, Artificial Intelligence (AI), Supply Chain Traceability using secure software platforms, and the utilization of Blockchain technology. Additionally, we specialize in Customized Robotics Development. Our clientele extends to both government and private sectors, and we take pride in tailoring innovative solutions to meet the distinctive demands of the palm oil and commodity industries.

What sets us apart from other IT companies is our leadership team, exclusively comprised of industry experts with diverse backgrounds in palm oil, spanning plantation and milling operations. Our journey has been marked by significant milestones, underscoring our commitment to innovation and excellence.

In recognition of our relentless efforts and dedication, we are pleased to share that AIREI has recently been bestowed with the SME100 Fast Moving Companies Award 2023. This accolade holds profound significance for us, serving as a testament to the collective hard work and unwavering commitment exhibited by our team. It reinforces our position as a dynamic, forward thinking multinational company that continues to make substantial contributions to the palm oil sector.

2. How did AIREI decide to venture into an AI cloud-based software platform for the palm oil industry? And how does MyPalm, the culmination of this venture, contribute to the industry’s transformation?

AIREI’s decision to embark on the development of an AI cloud-based software platform stemmed from a deep-seated recognition of the palm oil industry’s substantial contributions to the economy. Despite its significance, the industry persisted with conventional operational methods. AIREI identified glaring inefficiencies within operation, production, and maintenance processes, recognizing a unique opportunity to address these challenges through cutting-edge technologies.

The culmination of this venture is MyPalm, AIREI’s flagship solution, a comprehensive AI-based web and mobile application designed to revolutionize the palm oil industry and enhance operational efficiency. MyPalm was conceived to unravel complexities hidden from plain view, acknowledging that traditional methods were inadequate. MyPalm stands as a testament to AIREI’s commitment to the industry’s digital transformation, reflecting a strategic alignment of potential, the identification of inefficiencies, and a forward-thinking approach to data utilization. It represents innovative solutions to bridge longstanding gaps and foster sustainable growth in the palm oil industry.

3. Can you elaborate on how MyPalm addresses specific needs in the palm oil industry?

MyPalm comprises multiple categories, each equipped with specific modules and features tailored to optimize operations and enhance efficiency at various stages of the palm oil industry supply chain. These categories include MyPalm Oil Palm Nursery, MyPalm Oil Palm Plantation, MyPalm Dealer, MyPalm Palm Oil Mill, MyPalm Refinery, and MyPalm Kernel Crushing Plant.

Each category encompasses essential modules, such as operational, maintenance, production, human resources, finance, and supply chain management. These modules collectively empower users with tools to optimize their operations comprehensively. MyPalm is also embedded with AI capabilities and acts as a potent business intelligence tool, analyzing data to provide actionable insights and predictions. This strategic integration enhances decision-making, augments operational efficiency, and contributes to the digital transformation of the palm oil sector.

4. How does MyPalm Palm Oil Mill address the dual challenge of mitigating oil losses and minimizing frequent machinery and mill breakdowns, both of which can significantly impact mill revenue and overall efficiency in the palm oil milling process?

 MyPalm Palm Oil Mill addresses these two challenges in the milling process through its production and maintenance module. In the Production Module, our approach is all about predictive insights. MyPalm, armed with

advanced AI algorithms, analyze key parameters like FFB Quality, Sterilization, and Pressing data in real time. This provides us with the foresight to anticipate challenges and potential oil losses in mesocarp fibre during the production process. But we don’t stop at predictions.

MyPalm goes a step further by offering actionable solutions based on identified factors. This means our mill operators can take immediate, informed actions to prevent the losses from happening and at the same time will be able to optimize the Oil Extraction Rate (OER), making the production process more efficient.

To keep everyone in the loop, MyPalm sends instant notifications. Whether you’re part of the management team or working on the floor, you get real-time updates on what’s happening, facilitating swift decision-making. The Maintenance Module within MyPalm functions as a guiding force propelling palm oil mills toward operational excellence. This module optimizes maintenance efficiency through advanced features, including Corrective Maintenance for prompt reporting of breakdowns, Routine Preventive Maintenance with flexible inspection schedules, and Replacement Preventive Maintenance incorporating automatic tracking of machine running hours.

MyPalm adopts a proactive strategy with the integration of predictive maintenance algorithms, allowing us to foresee potential equipment issues before they escalate into downtime or operational disruptions. Continuous monitoring of equipment health is crucial, and MyPalm ensures that preventive measures are taken to maintain optimal performance and minimize unexpected breakdowns.

In addition, communication within the maintenance team is streamlined through MyPalm. It ensures that everyone has the information they need about equipment status, maintenance schedules, and required actions, 

enhancing coordination and response times. In essence, MyPalm is our way of making production and maintenance smarter, more efficient, and seamlessly connected in the dynamic landscape of the palm oil industry.

5. What potential challenges do you foresee with this product? How does AIREI plan to mitigate risks or obstacles?

Like any other ambitious product, we acknowledge the presence of potential challenges, and at AIREI, we believe in a proactive approach to mitigate risks and overcome obstacles. One potential challenge could be the integration of MyPalm into existing systems across various user environments. To address this, we’ve developed a meticulous implementation plan that involves close collaboration with our clients. This ensures a seamless integration process, and our dedicated support team will be readily available to assist with any issues or concerns that may arise during this transition.

Another challenge may involve adapting to diverse operational environments. To mitigate this risk, we’ve designed MyPalm to be flexible and customizable, allowing it to align with the specific needs and nuances of each user. Our team at AIREI is committed to providing tailored solutions and ongoing support to ensure a smooth and successful implementation.

Furthermore, potential technical glitches or unforeseen issues might occur during the initial stages. AIREI has implemented a robust quality assurance and testing process to identify and address any such issues before they impact the functionality of MyPalm. Additionally, we have a responsive technical support team in place to provide immediate assistance and resolutions.

In summary, while challenges are inherent in any product, AIREI is well-prepared to navigate them. Our proactive measures, collaborative approach, flexibility in implementation, and dedicated support structure underscore our commitment to ensuring the success of the product and the satisfaction of our clients.

6. Are there any contingency plans in place? Will AIREI require additional support or expertise?

At AIREI, we prioritize meticulous planning and foresight, including the development of contingency plans to ensure the success of MyPalm implementation for our clients. We acknowledge that unforeseen challenges may arise, and we are well-prepared to address them. Our contingency plans cover various scenarios

that could potentially impact the product implementation timeline, deliverables, and overall product efficiency. These plans are designed to be flexible, allowing us to adapt quickly to changing circumstances. Regular risk assessments are also implemented to identify any emerging issues and adjust our plans accordingly.

Regarding additional support or expertise, AIREI is committed to leveraging our internal resources effectively. We boast a skilled and experienced team well-versed in addressing a wide range of challenges. However, should the need arise for specialized expertise beyond our current capabilities, we are open to collaborating with external partners or consultants who bring the necessary skills to the table.

Our primary focus is on ensuring the seamless implementation of MyPalm for our clients and we remain agile and responsive to any evolving requirements. By maintaining a proactive stance and fostering a culture of adaptability, we aim to navigate challenges effectively and deliver successful outcomes for our clients.

SMEs Rebounding Strongly Amid Economic Uncertainty

 

Malaysian SMEs have experienced a significant rebound following the reopening of the economy post-COVID-19 pandemic. In 2022, the SME sector recorded an 11.6 percent growth in GDP against 8.7 percent for the overall economy.

This is also reflected in the number of participants of the SME100 Awards, with nominations jumping by 36 percent to reach 1,088 nominations, breaching the 1,000 mark for the first time in the 15-year history of the award. Revenue growth among the nominees has more than doubled, averaging 112.9 percent versus a year earlier.

The SME100 Awards is organised by SME Magazine and the Small and Medium Enterprises Association of Malaysia (SAMENTA), honouring outstanding SMEs for their exceptional achievements in various industries.

Deputy Finance Minister, Datuk Seri Ahmad Maslan presented the awards in the presence of Datuk William Ng, national president of SAMENTA, Zahid Ismail, director general of Malaysia Productivity Corporation, and Tan Sri Soh Thian Lai, president of the National Chamber of Commerce and Industry.

“The government, under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, is committed to creating an enabling environment for our SMEs to thrive. We recognize the importance of providing support, whether through policy frameworks, financial assistance, and infrastructure development, to empower our SMEs to reach greater heights,” Ahmad said in his speech at the SME100 awards ceremony.

“Despite being the first affected by economic downturns, SMEs, especially the SME100 awardees, have displayed remarkable resilience, strength, and growth. This shows that given the right policy direction and support, our SMEs can perform strongly,” said Ng.

The SME100 Awards maintained rigorous evaluation criteria, encompassing qualitative and quantitative analysis, and a 100% interview requirement. The focus was on growth metrics such as turnover, profit, market share, and resilience indicators including best practices, sustainability, and vision. CTOS provides data for the ranking, while Baker Tilly served as the official auditor of the award.

Aside from the SME100, four other awards were presented, including the SME100 CTOS Credit Excellence Awards, BMI Sustainable Brand Awards, SME100 SME Icon Award, and BMI Affingem Women Entrepreneur Awards, with Affin Bank sponsoring the latter two categories.

The SME100 has become a symbol of trust and reliability for business owners, with past recipients often going on to be listed on various stock exchanges, including notable companies like Grab, Mynews Holdings Berhad, and Solarvest Holdings Berhad. Besides Malaysia, the SME100 is also organised in Indonesia, Singapore, and Vietnam

For more information about the SME100 Awards 2023 Malaysia and a complete list of winners, please visit http://sme100.asia.

SME

MPOB INTERNATIONAL PALM OIL CONGRESS AND EXHIBITION 2023 (PIPOC 2023)

 

Prime Minister YAB Dato’ Seri Anwar bin Ibrahim officiated the MPOB International Palm Oil Congress and Exhibition 2023 (PIPOC 2023), the world’s largest palm oil congress and exhibition, at the Kuala Lumpur Convention Centre today. Also present was the Deputy Prime Minister and Minister of Plantation and Commodities, YAB Dato’ Sri Haji Fadillah bin Haji Yusof.

The oil palm sector contributed significantly to the Malaysian economy with export earnings of palm oil and palm-based products surging to RM137.89 billion in 2022 from RM108.52 billion in 2021. Malaysian palm oil accounted for 31% of the world’s palm oil exports, totalling 51 million tonnes last year. These achievements are noteworthy, considering that oil palm in Malaysia is planted on only about 5.67 million hectares, representing less than 2% of the global land area of 300 million hectares under oilseed crops.

Palm oil’s versatility makes it a crucial ingredient in various products, from cooking oil, margarine, baked goods, and snacks to processed foods. It is rich in phytonutrients and other beneficial components that can prevent cancer, lower cholesterol, slow ageing, and manage various non-communicable diseases, including cardiovascular diseases, diabetes, and chronic respiratory conditions.

In recent years, the Malaysian oil palm industry has faced several challenges, including trade issues, false allegations, such as forced labour in oil palm plantations, trade barriers, and climate change, all of which impact the image and export of palm oil products. However, the Ministry remains optimistic that these issues will be appropriately addressed.

During the event, the Prime Minister also launched the Sawit Intelligent Management System (SIMS). SIMS is designed to facilitate transactional data management along the palm oil supply chain. It aims to promote self-regulation, reduce government oversight, provide user-friendly features, enhance security, and offer valuable decision-making insights. Developed by MPOB, SIMS enables comprehensive information management, enhancing industry efficiency and cost savings.

Another important highlight is the global recognition earned by the Malaysian Sustainable Palm Oil (MSPO) Certification. It was one of the three certification schemes adopted for the Sustainable Sourcing Code for palm oil at the Tokyo 2020 Olympics and Paralympic Games. Furthermore, the 2022 Beijing Winter Olympics showcased MSPO through the exclusive supply of bread formulated by the Palm Oil Research and Technical Services Institute of MPOB (PORTSIM).

The three-day PIPOC 2023, which commenced yesterday, is hosted by MPOB. The event has attracted more than 100 distinguished speakers and approximately 2,000 participants from across the globe, creating a platform for the exchange of invaluable insights regarding current trends, challenges, opportunities, and the latest technologies within the oil palm industry. Under the overarching theme ‘Navigating Uncertainties, Building Resilience,’ PIPOC 2023 simultaneously hosts four concurrent conferences: the Agriculture, Biotechnology & Sustainability Conference; the Processing, Food Safety & Nutrition Conference; the Downstream & Value Addition Conference; and the Global Economics & Marketing Conference.”

The congress also includes a trade exhibition featuring more than 400 booths showcasing cutting-edge industry developments, the latest technologies, state-of-the-art equipment, and various products. PIPOC 2023 is expected to bring substantial benefits to industry players along the palm oil supply chain, aligning with the Ministry’s endeavour to elevate the industry’s global status while concurrently addressing its current challenges.

MINISTRY OF PLANTATION AND COMMODITIES

Aplikasi Pantau MSPO- MSPO Trace, Sasar 100% Kebolehkesanan Sijil MSPO

KUALA LUMPUR, Nov 18 — The Malaysian Palm Oil Certification Council (MPOCC) today launched its Malaysia Sustainable Palm Oil (MSPO) Trace system, a continuous certification monitoring platform throughout the palm oil value chain from grower to customer.

MPOCC chairman Datuk Franki Anthony Dass said the IT platform is a process for palm oil industry players to verify themselves in the face of various accusations towards the industry.

“The MSPO Trace can even map out the source of the product to palm oil plantation and mill in almost real-time, stemming the information from Oil Palm Management Certification (OPMC) and Supply Chain Certification Standard (SCCS).

“This is by utilising big data management and data decision making, as we target 100 per cent traceability of MSPO-certified palm oil to plantations nationwide by 2025,” he told reporters after the launch of the MSPO Trace platform here today.

The MSPO Trace comprises four modules namely certification, traceability, logo usage, and complaints and grievances.

The project on logo usage and complaints is still ongoing and will be completed by the end of this year.

Franki said over 3.4 million hectares or about 60 per cent of palm oil planted areas and 328 mills or 73 per cent of the total mills have been MSPO-certified as at end-October.

These include smallholders with a planted area of 546,000 hectares and 1,565 estates with a total area of 2.8 million hectares. In addition, 152 processing facilities including 46 refineries have also been certified with MSPO SCCS.

Meanwhile, Primary Industries Minister Teresa Kok Suh Sim said the plans for the traceability of sustainably-produced palm oil are in tandem with the global demand for sustainable palm oil.

“My ministry is also looking into working with other ministries and agencies into a precise mapping of Malaysian palm oil planted areas that will soon be accessible to the public,” she said.

The MSPO Trace was developed by Airei Sdn Bhd, a local IT systems developer with expertise in agriculture software solutions. The app is available for free on the App Store and Google Play.

— BERNAMA