Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani urged palm oil mills in Malaysia to use artificial intelligence (AI) technology for palm oil processing as one of the methods to reduce cost and increase revenue.

“As we move forward into a new era of digitisation, the integration of AI into the palm oil production process is pivotal as it can enhance efficiency, reduce foreign labour dependency and ensure the highest standards of quality and sustainability.

“Additionally, we can monitor every stage of milling, maintenance and operation to quality control, in real-time, enabling us to optimise yields and minimise the production cost of palm oil production,” he said before launching the AI-based smart palm oil mill at Minsawi Industries Sdn Bhd’s palm oil mill in Kuala Kangsar, Perak.

The AI-based smart palm oil mill is a collaboration between Minsawi Industries and AIREI Sdn Bhd.

Johari highlighted that with the launch of the AI smart palm oil mill, Malaysia is setting new standards for environmental sustainability through energy consumption monitoring, water usage and waste management.

“This facility will serve as a model for future projects, showing that it is possible to balance economic growth with ecological stewardship

“Furthermore, if this technology is effective, the system should be looked into by all stakeholders in the industry as the integration of AI technology into palm oil production is a win-win for the industry, climate and biodiversity, and future generations,” he said.

He explained that the palm oil mill, via the AI technology used, can reduce its workforce, especially foreign labour, by about 30%-35%, thus prioritising local talent to handle the technology.

“When a big mill can reduce its workforce by 30%-35%, it will save nearly 35% in overhead cost.

“Soon enough, other costs including energy, water utility and administrative costs would also fall with the reduction in foreign workers,” he said.

However, he stressed that AI would not replace the workforce, instead, it will empower them through higher wages and greater skill sets.

“By automating repetitive tasks, AI will free up our employees to focus on higher-value activities that require human skills and expertise.

“The government together with large players, are committed to providing the workforce with the necessary training and support to adapt to the changing demands of the industry,” he said.

Meanwhile, AIREI founder and Chief Executive Officer Surendran Kuranadan said the launch of Minsawi Industries’ AI smart palm oil mill is more than just a technological upgrade, it’s a shift in how the palm oil industry can operate.

“By harnessing the benefits of AI technology, we’re addressing inefficiencies, reducing environmental impact and paving the way for a smarter and more sustainable future,” he said, adding that AIREI’s innovative system integrates four core components (advanced sensors, AI-powered CCTV cameras, AI-driven control system and predictive maintenance) to optimise mill performance.