Impact of US market restrictions on Malaysian palm oil expected to be minimal, says ministry
KUALA LUMPUR (Aug 20): The Ministry of Plantation and Commodities (KPK) expects the direct impact of the United States (US) market restrictions on the Malaysian palm oil industry to be minimal.
According to the KPK, the main factor contributing to this is the specific characteristics and functions of Malaysian palm oil which has been certified sustainable through the Malaysian Sustainable Palm Oil (MSPO) certification, making it difficult to replace with other oils in the global market.
'Therefore, the level of industry dependence in the US on sustainable palm-based materials is high,' the ministry said on the parliament website in reply to a question from Kamal Ashaari (PN-Kuala Krau) on the government's short- and medium-term plan for the palm oil industry to adapt to the US market.
In 2024, Malaysia exported 191,231 tonnes of palm oil to the US. This value was only 1.1 per cent of the country's total palm oil exports for the year.
At the same time, the KPK said the government remains committed to providing various forms of aid, particularly for smallholders.
Among which are the Oil Palm Smallholders Replanting Financing Incentive Programme as well as special grants such as the supply of products for the control of ganoderma stem rot disease to assist smallholders.
'This type of assistance can help to reduce the impact on smallholders in Malaysia from changes in international trade policies,' it added. – Bernama government aid KPK palm oil parliament us
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