Consequences of Oil Palm Expansions - read of an academic article

A recent study on the environment, economic, and social consequences of oil palm plantations has been published in May 2020 by Matin Qaim et al. The article is useful—it collates research findings from other studies and paints a good overview of the issues with regards to oil palm expansions.

Some of the more interesting points in the article are as follows:

1. Total deforestation attributed to oil palm expansions across the world varies between countries. During the last 40 years, oil palm accounts for 47% of total deforestation in Malaysia and 16% in Indonesia. In Nigeria between 2005 and 2015, only 3% of total deforestation was due to oil palm expansion. Globally, approximately half of existing oil palm areas have contributed toward forest loss.

2. Oil palm plantations have strong adverse effects on local and regional air and water quality, especially if the land was establish using fire (and exacerbated by weather events such as the El Niño). Oil palm plantations have also been found to emit volatile organic compounds, promoting the production of haze and aerosol, as well as lowering regional water quality via the excess use of fertilisers.

3. Oil palm plantations have contributed significantly to rural economic development, generating income for farmers, labourers, and those involved in the oil palm supply chains. Generally, farm households across the world do economically better compared to farmers not involved in the cultivation of oil palm. Likewise, rural non-farm households also benefit, mainly in the form of additional employment opportunities due to the labour intensive nature of the industry.

4. There are legitimate concerns regarding unequal distribution of the economic benefits mentioned in the previous point, i.e. some farm households may have better access to capital and hence are able to adopt oil palm much easier than others. Social and human rights issues, including forced and child labour, are also a source of great concern.

5. The article highlights the difficulties faced in the oil palm discourse—it acknowledges that while banning the use of oil palm may help solve the environmental issues the crop brings in the short run, doing so now will result in a large economic loss, which in turn may lead to even larger environmental problems, since farmers will simply replace oil palm with another vegetable oil with higher land requirements per unit of output.

Coronavirus Boosting Plant-based Meat Products

An interesting consequence of the coronavirus pandemic: a surge in demand for plant-based meat. According to Nielsen, sales of plant-based meat in the US saw a jump of 264% in the nine weeks through 2 May 2020, which was further facilitated by collapsing supply chain of the more conventional meat such as beef and pork. The fact that faux meat facilities are less susceptible to outbreak diseases compared to the usual meat processing plants (primarily due to the former relying more on machinery and less on employees, which turn means that workers are not jam packed in close quarters like the latter) as well as their ability to ramp up production without needing to rely on animals to be ready for slaughter contributed toward the considerable increase in alternative meat options. Impossible Foods is already taking advantage of this opportunity—the company recently introduced its plant-based Impossible Burger at 1,700 Kroger and Kroger-owned stores throughout the United States, increasing its retail footprint by 18-fold.

Interestingly, the data also suggests that American consumers are losing interest in pastries and confectioneries—the sales for doughnuts, cupcakes and bread rolls and dessert platters have declined in the same period, with the demand for doughnuts plummeting the most at -45%. On the other hand, beans and legumes are fair game, with dried beans seeing an increase in demand by 140% in the same period, followed by kidney beans and chickpeas.

Now that many are de-confining and heading back to work, there are restrictions and caution about eating out. What are restaurants doing for the economic recovery? The shift of the best restaurant in the world, the two Michelin-starred Noma in Copenhagen from USD500 tasting menus to c. USD25 takeout burgers is a fascinating snippet. The two burger options are a cheeseburger and a quinoa-tempeh veggie burger.

Noma’s quinoa-tempeh veggie burger. Credit: Ditte Isager

Economic Recoveries after the Coronavirus

Another bit on the coronavirus, this time focusing on economic recovery predictions after the coronavirus pandemic. A swoosh recovery scenario is added into the growing realms of possibilities, with some experts agreeing that no matter how it recovers, there is nowhere for the economy to go but up; but changes are substantial. Here are some recent notable headlines:

Economist: Has covid-19 killed globalisation? The flow of people, trade and capital will be slowed

WSJ: In April, U.S. unemployment surged to 14.7%. Among women, the rate rose to 16.2%, compared with 13.5% for men. Economic shock hits lower-income households harder. Almost 40% of households earning less than $40,000 annually experienced at least one job loss in March, compared with 19% of households earning between $40,000 and $100,000, the Fed said.... U.S. retail spending fell a record 16.4% in April from a month earlier as consumers stayed home and demand plunged…. Germany fell into recession in the first quarter, with its gross domestic product shrinking by 8.6% on an annualized basis, but is nonetheless expected to fare better than its neighbors over the balance of 2020. The eurozone economy as a whole contracted by 14.2%, while the U.S. economy shrank by 4.8%.

#CovidEconomics #Covid19 #Economics #EconomicRecovery #Demand #BehaviouralChange

Covid-19 Boosts Vitamin C but Hits Retail in Hong Kong

Watson's Hong Kong has been hit by the pandemic but immunity boosting vitamins subcategory, such as vitamin C, as the retailer “saw first quarter sales jump over 40-fold year on year". Hong Kong’s retail sales in the first quarter, which fell by 36.9%, was the deepest year on year decline on record. This comes as the city remains mired in a recession. The economy contracted by 8.9% in the first quarter of this year, the worst on record, having been hit hard by months of anti-government protests, a trade war between the US and China, and the ongoing coronavirus pandemic.

Here’s a #throwback to our post on online public interest in #turmeric and #vitamin C during the coronavirus outbreak.

The APPGM-SDG Multi-stakeholders Conversation: Building Local Economy in Urban Areas

On 29 April 2020, Segi Enam Advisors attended a Zoom talk on using the local economy as platform to support vulnerable communities in the urban areas, namely the B40 and migrants. Hosted by the All-Party Parliamentary Group Malaysia-Sustainable Development Goals (APPGM-SDG), the talk highlighted the socio-economic issues faced by the two groups, with many of these problems aggravated by the spread of the coronavirus. It also explored the possibilities on how to cushion the blow the virus has had on the livelihoods of the B40 and migrants as well as the steps to stimulate the economy once the pandemic is over.

Several interesting points that stood out during the talk are as follows:

1. Low-cost flats intended to house the urban poor community should fulfil the social needs and livelihood of its residents, i.e. well-equipped facilities and reasonable distance from cities and townships where most residents are employed.

2. A community of “new poor” has emerged, i.e. individuals who have fallen into poverty due to a loss of income during the Movement Control Order (MCO) but were not qualified for financial aid prior to that loss of income.

3. The possibility of using the One Tambun One Product (OTOP) model implemented in Thailand, a local entrepreneurship stimulus programme supporting unique locally made and marketed products within each tambon (sub-district) across the country.

Coronavirus Impact on Food and Markets via Migrant Workers?

New developments amid Malaysia’s Covid-19 recovery phase: several markets in Kuala Lumpur and Selangor areas—namely the Selayang Wholesale Market, the Taman Megah wet market, the PJ Old Town wet market, and the Raja Bot market—have recently been temporarily closed down following reports of coronavirus infections. Interestingly, 10 foreign workers told to self-quarantine on 25 March after being found to have attended the Seri Petaling Mosque tabligh event were employed at the Selayang Wholesale Market. There are also rumours of uncertainties with regard to the testing results and SOPs for operating food markets.

The domino effect of market closures seems to have parallels with the meat packing plants in the US, where employees often work in close quarters under difficult environments; the infection rate around the plants were found to be 75% higher than that of other US counties. In an official statement dated 23 Apr 2020, the United Food and Commercial Workers (UFWC) International Union disclosed that 13 processing plants have closed in the past two months, impacting over 24,500 workers (one-third of the US meatpacking industry are immigrants) and resulting in a 10% and 25% reduction in beef and pork slaughter capacity. USDA data reflects this reduced capacity, showing a decline of 27% and 20% in beef and pork processing respectively compared to this time in 2019. Various problems abound for the industry, including farmers considering euthanizing their animals to avoid overcrowding.

Migrant worker populations may be a common theme here. In 2018, Khor Reports has previously analysed Malaysia’s structural reliance on foreign labour based on 2016 data, which showed that Sabah’s share of foreign labour was the highest in the country at about 37%, followed by Selangor at 11%. An update on the most recent data will be conducted in due course.

Returning to the Covid-19 situation, in the case of the Malaysian capital’s wholesale market, approximately 16,000 Pusat Bandar Utara residents have been placed under a two-week Enhanced Movement Control Order (EMCO) from 20 April, with around 90% of residents comprising foreigners. That being said, the Malaysian Health Director General reiterated that screening for foreign workers will be done on a targeted approach on high risk groups, and that screening for all six million workers is not possible.

Source: https://twitter.com/MelGohCNA/status/1254700504539488256

Interestingly, this latest statement on the number of foreign workers affirms our previous estimate of six million workers in 2018, which was derived from official and industry comments as seen in our report preview below.

A preview of our 2018 analysis report. Note our estimate of six million foreign workers, both documented and undocumented, in Malaysia at the bottom right.

The news has given rise to alarming hostility on social media against the Rohingya community—there were even online petitions urging the government to deport Rohingyas from Malaysia, with one purportedly garnering 200,000 signatures and was later removed after being reported as hate speech. The PN leadership has yet to address and reflect on their current policy regarding Myanmar refugees and the de facto open migrant policy.

While the virus problem has brought down air pollution (and may even be one of the drivers behind lower meat consumption), experts have warned that it could be only temporary, especially if no concerted efforts follow after the outbreak dies down. But the issue it has wrought for poor migrant communities may be longer lasting; integration and social cohesion have been identified to be potential issues in future thanks to the growing discrimination and scapegoat attempts—aggravated by misinformation and fake news—against these communities.

Online Public Interest: #Covid19 and #MilkTeaAlliance

Another #KhorReports infographic on #Covid19, this time on the #MilkTeaAlliance, a hashtag born out of an ongoing geopolitical virus blame game within Asia. With talks of a second wave of the virus, this event maybe be worth keeping an eye on.

Online Public Interest: Coronavirus and #Masks4All

Here are a couple of #KhorReports infographic on the #coronavirus. The first one is on the #Masks4All campaign (check out #Masks4All.org and #Masks4All.co) following the positive shift in public attitude towards masks despite initial ambivalence on the subject from public authorities. Also, there is a surge in public interest #self-help tips and tricks, such as consuming #vitamin C and #turmeric as well as DIY masks, as well as the emergence of face mask fraud cases in Malaysia.

The second infographic focuses on public interest in mask-wearing in three cities—Hong Kong, New York, and Singapore—and a throwback on mask usage during the Great Influenza of 1918. Also included is a brief update on #China as it gradually eases its #Coronavirus #lockdown.

#Coronavirus Lockdown - Increasing Interest as Outbreak Continues

#KhorReports infographic on #coronavirus #covid19 #lockdown in #socialmedia data. Notably, #India under lockdown, Prince Charles tests positive and Greta Thunberg says she reckons she has been recovering from it. Tokyo Summer #Olympics2020 postponed. #dirumahaja #DudukdiRumah #StayHome #StayAtHome #Quedateentucasa #Ficaemcasa #RestezChezVous #iorestoacasa And more hashtags... #StayHomeStaySafe #NotDying4WallStreet #QuarantineandChill #LockdownNow #Covidiots #MyPandemicSurvivalPlan #FlattenTheCurve #SocialDistancing #TogetherAtHome

The Busiest Land Crossing in Southeast Asia: Part #2 - Adjustments & Rethinking for Daily Commuters

Continuing from our first post on the closing of the Johor-Singapore crossing, drastic adjustments and rethinking for Malaysian commuting daily to the Singapore for work. As swathes of people flock the causeway into the city-state, Singapore authorities and employers scramble to facilitate temporary accommodation. Many workers who successfully crossed the border had to sleep rough at train stations (see picture). Those left behind were later allowed to resume work in Singapore.

Accordingly, Singaporean online public interest in matters related the Johor-Singapore crossing lockdown spiked around the time when the Movement Control Order was announced (17 Mar 2020) and enforced (18 Mar 2020) (see graph and map).

On our previous post about the Johor-Singapore crossing see Part #1.