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New Straits Times
9 hours ago
- Business
- New Straits Times
MPOC: RM122mil in trade deals unlocked in Philippines forum
KUALA LUMPUR: Business engagements at the Malaysian Palm Oil Forum (MPOF) Philippines 2025 have unlocked an estimated RM122 million in potential trade, reinforcing Malaysia's role as a major palm oil supplier in the Asean region. The two-day event, held in Manila from June 3 to 4 and hosted by the Malaysian Palm Oil Council (MPOC), brought together over 400 participants and featured targeted BizMatch sessions. In a statement, MPOC said that this year marked the first time the council co-organised the forum with the Malaysian Oleochemicals Manufacturers Group and the United Coconut Association of the Philippines, further strengthening regional ties in the oils and fats sector. These one-on-one meetings between 16 Malaysian palm oil suppliers and buyers from the Philippines resulted in 121 business discussions aimed at securing commercial deals. MPOC chief executive officer Belvinder Sron said the Philippines remains one of Malaysia's most important trade partners in the Asean region. "In 2024, the Philippines imported around 1.1 million tonnes of palm oil, with Malaysia supplying 61 per cent of its palm oil, solidifying its role as the top supplier," she said. She said that the strategy is focused on Asean, Africa, and the Middle East and has already yielded results, with exports to these regions growing by 24 per cent, from 6.0 million tonnes in 2020 to 7.5 million tonnes in 2024, marking a shift in Malaysia's export landscape. Belvinder expressed encouragement over the strong level of interest shown by Filipino buyers in the BizMatch outcomes. "BizMatch platform continues to be a powerful tool in creating real commercial opportunities for Malaysian exporters and helping buyers find reliable, high-quality suppliers committed to sustainability and value," Belvinder added. Malaysia's ambassador to the Philippines, Datuk Abdul Malik Melvin Castelino, emphasised the importance of deepening bilateral trade. The forum included eight expert presentations on themes such as sustainability, downstream applications, nutrition, and global market outlooks. A key discussion panel, "Lauric Oils & Oleochemicals: Market Growth and Innovations", explored emerging trends in the Philippines, a growing market for lauric oils like palm kernel and coconut oil.
Daily Express
28-05-2025
- Business
- Daily Express
Malaysia prioritising smaller plantations in green push
Published on: Wednesday, May 28, 2025 Published on: Wed, May 28, 2025 Text Size: Malaysian Palm Oil Council chairman Datuk Carl Bek-Nielsen previously likened the classification to 'getting slapped with a fine for speeding while you have been driving below the speed limit', calling it a blow to an industry that has significantly reduced its environmental footprint. - Pic for illustration only. Kota Kinabalu: Amid ongoing scrutiny over the European Union's decision to label Malaysia a 'standard risk' under its deforestation rules, the government is focusing on sustainability and support for smallholders in the shift towards greener practices. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said Malaysia is actively working to ensure that its sustainability certification systems, such as the Malaysian Sustainable Palm Oil (MSPO) standard, are accessible to and inclusive of small-scale farmers. 'What we want to do now is ensure the MSPO standards can also embrace smallholders. As of today, about 85% of our smallholders are able to comply. 'They do not have mills or refineries, but they produce the fruits. We help integrate them into the supply chain and justify their compliance,' he told reporters after launching the Malaysia International Cocoa Fair 2025 (MICF 2025) here yesterday. His remarks follow strong reactions from industry leaders, who have described the EU Deforestation Regulation (EUDR) classification as 'unjust' and damaging to the livelihoods of Malaysian producers, especially smallholders. Malaysian Palm Oil Council chairman Datuk Carl Bek-Nielsen previously likened the classification to 'getting slapped with a fine for speeding while you have been driving below the speed limit', calling it a blow to an industry that has significantly reduced its environmental footprint. Advertisement In acknowledging that Malaysia must still comply with EUDR, Johari said it needs to be done even if enforcement is not yet in effect. However, he stressed that many of Malaysia's major exporters already operate within a fully traceable and sustainable supply chain. 'A large portion of our products are exported to Europe because many of our players are large companies. These companies own the entire supply chain, from plantations, mills, and refineries to oleochemical plants, so they have full control and are able to meet export requirements,' he added. In addition to palm oil, he said, cocoa farmers are also being brought into the fold. 'I have instructed the Malaysian Cocoa Board to ensure all smallholders are registered. Every cocoa plantation must be certified. If they hold land grants from the state government, great; if not, they need to apply,' he said. Johari made it clear that the government is committed to halting deforestation, stating that any expansion in agriculture must take place on existing land. 'We must use existing land and increase yields through good agricultural practices and high-quality planting materials. That is the only way we can double our yield per hectare,' he said. Despite Malaysia's ongoing efforts, the EU's decision to classify the country as 'standard risk' has prompted questions about fairness and transparency, as the classification could result in greater scrutiny and higher compliance costs for exporters. Still, Johari remains optimistic, adding, 'Actually, our certification is already recognised. Currently, we are classified under 'standard risk', but we are working on improving this. We aim for recognition of our sustainability and traceability systems.' Earlier in his speech, he said representatives from the EU are expected to visit Malaysia in September or October to observe local practices and assess the country's regulatory readiness. 'I have also encouraged all commodity players in Malaysia, whether in palm oil, rubber or cocoa, to adopt sustainability practices if they wish to export,' he said. The push to improve sustainability systems, particularly for smallholders, is seen as essential not only for meeting international standards but also for protecting livelihoods and ensuring the long-term growth of Malaysia's commodity sectors. Also present were Deputy Plantation and Commodities Minister Datuk Chan Foong Hin and Malaysian Cocoa Board chairman Datuk Matbali Musah. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Star
26-05-2025
- Business
- The Star
M'sia boosts green push
KOTA KINABALU: Amid ongoing scrutiny over the European Union's decision to label Malaysia a 'standard risk' under its deforestation rules, the government is focusing on sustainability and support for smallholders in the shift towards greener practices. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said Malaysia is actively working to ensure that its sustainability certification systems, such as the Malaysian Sustainable Palm Oil (MSPO) standard, are accessible to and inclusive of small-scale farmers. 'What we want to do now is ensure the MSPO standards can also embrace smallholders. As of today, about 85% of our smallholders are able to comply. 'They do not have mills or refineries, but they produce the fruits. We help integrate them into the supply chain and justify their compliance,' he told reporters after launching the Malaysia International Cocoa Fair 2025 (MICF 2025) here yesterday. His remarks follow strong reactions from industry leaders, who have described the EU Deforestation Regulation (EUDR) classification as 'unjust' and damaging to the livelihoods of Malaysian producers, especially smallholders. Malaysian Palm Oil Council chairman Datuk Carl Bek-Nielsen previously likened the classification to 'getting slapped with a fine for speeding while you have been driving below the speed limit', calling it a blow to an industry that has significantly reduced its environmental footprint. In acknowledging that Malaysia must still comply with EUDR, Johari said it needs to be done even if enforcement is not yet in effect. However, he stressed that many of Malaysia's major exporters already operate within a fully traceable and sustainable supply chain. 'A large portion of our products are exported to Europe because many of our players are large companies. These companies own the entire supply chain, from plantations, mills, and refineries to oleochemical plants, so they have full control and are able to meet export requirements,' he added. In addition to palm oil, he said, cocoa farmers are also being brought into the fold. 'I have instructed the Malaysian Cocoa Board to ensure all smallholders are registered. Every cocoa plantation must be certified. If they hold land grants from the state government, great; if not, they need to apply,' he said. Johari made it clear that the government is committed to halting deforestation, stating that any expansion in agriculture must take place on existing land. 'We must use existing land and increase yields through good agricultural practices and high-quality planting materials. That is the only way we can double our yield per hectare,' he said. Despite Malaysia's ongoing efforts, the EU's decision to classify the country as 'standard risk' has prompted questions about fairness and transparency, as the classification could result in greater scrutiny and higher compliance costs for exporters. Still, Johari remains optimistic, adding, 'Actually, our certification is already recognised. Currently, we are classified under 'standard risk', but we are working on improving this. We aim for recognition of our sustainability and traceability systems.' Earlier in his speech, he said representatives from the EU are expected to visit Malaysia in September or October to observe local practices and assess the country's regulatory readiness. 'I have also encouraged all commodity players in Malaysia, whether in palm oil, rubber or cocoa, to adopt sustainability practices if they wish to export,' he said. The push to improve sustainability systems, particularly for smallholders, is seen as essential not only for meeting international standards but also for protecting livelihoods and ensuring the long-term growth of Malaysia's commodity sectors. Also present were Deputy Plantation and Commodities Minister Datuk Chan Foong Hin and Malaysian Cocoa Board chairman Datuk Matbali Musah.
The Star
26-05-2025
- Business
- The Star
Malaysia supports smallholders amid EU scrutiny, says Johari
KOTA KINABALU: Malaysia is working to make sustainability certification systems like the Malaysian Sustainable Palm Oil (MSPO) standard accessible to small farmers, says Datuk Seri Johari Abdul Ghani. "We want MSPO standards to include smallholders. As of Monday (May 26), about 85% of our smallholders can comply," said the Plantation and Commodities Minister. 'Smallholders lack mills or refineries but produce the fruits. The government helps them integrate into the supply chain, said Johari. "What we want to do now is ensure the MSPO standards can also embrace smallholders. As of Monday (May 26), about 85% of our smallholders are able to comply. "They do not have mills or refineries, but they produce the fruits. We help integrate them into the supply chain and justify their compliance," he added after launching the Malaysia International Cocoa Fair 2025 (MICF 2025) in Kota Kinabalu. His remarks follow strong reactions from industry leaders, who have described the EU Deforestation Regulation (EUDR) classification as "unjust" and damaging to the livelihoods of Malaysian producers, especially smallholders. Malaysian Palm Oil Council chairman Datuk Carl Bek-Nielsen previously likened the classification to "getting slapped with a fine for speeding while you have been driving below the speed limit," calling it a blow to an industry that has significantly reduced its environmental footprint. Johari acknowledged that Malaysia must comply with the EUDR, even if enforcement is not yet in effect. He added that many of Malaysia's major exporters already operate within a fully traceable and sustainable supply chain. "A large portion of our cocoa products are exported to Europe because many of our players are large companies. These companies own the entire supply chain, from plantations, mills, and refineries to oleochemical plants, so they have full control and are able to meet export requirements," he said. In addition to palm oil, cocoa farmers are also being integrated. "I have instructed the Malaysian Cocoa Board to ensure all smallholders are registered. Every cocoa plantation must be certified. If they hold land grants from the state government, great, if not, they need to apply," he said. Johari made it clear that the government is committed to halting deforestation, stating that any expansion in agriculture must take place on existing land. "We must use existing land and increase yields through good agricultural practices and high-quality planting materials. That is the only way we can double our yield per hectare," he said. Despite Malaysia's efforts, the EU's decision to classify the country as "standard risk" has prompted questions about fairness and transparency, as the classification could result in greater scrutiny and higher compliance costs for exporters. Still, Johari remains optimistic, adding: "Actually, our certification is already recognised. Currently, we are classified under 'standard risk', but we are working on improving this. We aim for recognition of our sustainability and traceability systems." Earlier in his speech, Johari said representatives from the EU are expected to visit Malaysia in September or October to observe local practices and assess the country's regulatory readiness. "I have also encouraged all commodity players in Malaysia, whether in palm oil, rubber, or cocoa, to adopt sustainability practices if they wish to export," he said. The push to improve sustainability systems, particularly for smallholders, is seen as essential not only for meeting international standards but also for protecting livelihoods and ensuring the long-term growth of Malaysia's commodity sectors. Also present were Deputy Plantation and Commodities Minister Datuk Chan Foong Hin and Malaysian Cocoa Board chairman Datuk Matbali Musah.
The Star
25-05-2025
- Business
- The Star
Industry's green efforts red-flagged
PETALING JAYA: Malaysia's 'unjust' classification under the European Union Deforestation Regulation (EUDR) that paves the way for its palm oil to be excluded from the EU market has been criticised by local palm oil producers. Malaysian Palm Oil Council (MPOC) chairman Datuk Carl Bek-Nielsen has slammed the classification of Malaysia as a 'standard risk' under EU's deforestation rules. He called the decision 'very unfortunate and unjust', given the country's significant progress in curbing deforestation and raising sustainability standards in the palm oil sector. 'It is equivalent to getting slapped with a fine for speeding while you have been driving below the speed limit. 'I find it very unfair and a slap in the face to our industry, which has made tremendous efforts that have resulted in the area under oil palm reducing for the first time in over 100 years,' he told The Star . He added that countries designated as 'high risk' or 'standard risk' may face more stringent oversight and elevated compliance requirements. 'These countries are expected to encounter significantly higher compliance costs due to stringent regulatory measures imposed by the EU. 'They will also be subject to intensified scrutiny from competent authorities within the EU,' he added. According to the European Commission, the EUDR's country risk classification considers the rate of deforestation and forest degradation, the rate of expansion of agriculture land for relevant commodities, and their production trends. Malaysian Palm Oil Association (MPOA) chief executive officer Roslin Azmy Hassan echoed these concerns, describing the risk of EUDR becoming a non-tariff trade barrier and disproportionately affecting commodity producers in the Global South. 'For Malaysia, this could translate into palm oil producers, especially smallholders, being excluded from the EU, despite their compliance with national sustainability standards like the Malaysian Sustainable Palm Oil (MSPO) certification. 'Penalising them undermines their livelihoods and jeopardises broader socio-economic development goals,' he said. Roslin added that EUDR could push EU importers and processors to bypass Malaysian smallholders entirely, opting for suppliers in 'low-risk' countries to avoid compliance hurdles. On May 22, the European Commission announced the EUDR country benchmarking results that put Malaysia into the 'standard risk' category. 'The classification does not reflect Malaysia's well-established and verifiable commitment to sustainable development and responsible land stewardship,' Roslin said. 'Malaysia is one of the few countries that has promised to keep at least 50% of its land covered by forests. 'This pledge was made at the 1992 Rio Earth Summit and is still upheld today.' He added that the MSPO certification, a mandatory national standard covering more than 96% of the country's palm oil supply chain, was built on internationally recognised environmental, social and governance (ESG) principles. Roslin also questioned the fairness of the classification, highlighting that several EU member states with historical deforestation records were designated as 'low risk'. 'This discrepancy raises serious concerns about the objectivity, transparency and fairness of the EUDR framework,' he said. Despite ongoing consultations and Malaysia's participation in engagement platforms such as the Joint Task Force with the EU, Roslin said these efforts have largely failed to yield substantive outcomes. 'Too often, these dialogues have turned into symbolic exercises, lacking in tangible policy outcomes or genuine collaboration. 'This raises serious questions about the integrity of the consultative process and suggests that the current regulatory path represents not just a technical misjudgment, but a discriminatory trade measure targeting palm oil while ignoring parallel issues in other regions,' he added. When contacted, Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said clarification will be sought from the European Commission regarding the methodology used for the benchmarking.
