Latest news with #PlantationandCommoditiesMinistry
New Straits Times
6 days ago
- Business
- New Straits Times
Govt in talks to ease oil palm land conversion for smallholders
BANTING: The Plantation and Commodities Ministry is in talks with state governments to help smallholder farmers convert the land status of their plots from rubber to palm oil cultivation, enabling them to qualify for Malaysian Sustainable Palm Oil (MSPO) certification. Minister Datuk Seri Johari Abdul Ghani said one of the key prerequisites for MSPO certification, particularly in meeting European Union Deforestation Regulation standards, is having a legitimate land title that reflects the actual crop being cultivated. "If the land is planted with palm oil, the title must indicate it as palm oil land," he told reporters at the launch of SD Guthrie Bhd's B30 biodiesel pilot project in Carey Island here today. "However, in many cases, smallholders are farming palm oil on land officially titled for rubber, which complicates the certification process," he said. He noted that the cost of converting land titles, including premiums and penalties, can be prohibitively high, often between RM30,000 and RM40,000, making it unaffordable for many smallholders. "This is the challenge. Some cannot afford the premium, and when penalties for late conversion are included, the burden becomes even heavier," Johari added. The ministry estimates that around 50,000 smallholders may be affected by these mismatched titles. To address this, Johari said a comprehensive list of affected farmers is being compiled, with the aim of negotiating financial solutions or possible penalty waivers with state governments.
New Straits Times
08-07-2025
- Business
- New Straits Times
Malaysia refines market strategy to expand palm oil reach
KUALA LUMPUR: Malaysia is refining its market strategy to support the growth of specific sectors and deepen commercial relationships, said the Plantation and Commodities Ministry. Its minister Datuk Seri Johari Abdul Ghani said the aim is to sustain long-term relevance in diverse regional markets in response to changing demands. Speaking at the Palm Oil Briefing and Industry Dialogue Session, Johari said each region has distinct factors driving palm oil demand. He said that in North Africa, for example, Egypt plays a key role as a strategic re-export hub, distributing palm oil to surrounding markets. "In Sub-Saharan Africa, we are experiencing rising demand for industrial applications, particularly in food processing. "In Asean, rapid growth in the refining and food manufacturing sectors continues to drive the need for high-quality, reliable palm oil supply," he said in his opening remarks. Johari noted that the rising demand for value-added palm oil products such as specialty fats, oleochemicals, and food ingredients presents significant opportunities for Malaysia to strengthen its presence in key markets. "By supporting the development of the downstream sector, Malaysia aims to embed its palm oil more firmly into local and regional value chains, adding economic value beyond raw material supply. "This approach not only strengthens supply chain integration, but also encourages joint ventures, technology transfer and local processing partnerships, fostering long-term resilient and shared industrial growth," he said. Johari said that as Malaysia works to strengthen its palm oil trade, the country has successfully expanded into new and emerging markets. "Away from our traditional trading partners, last year, 40 per cent of our palm oil was exported to North Africa, Sub-Saharan Africa and Asean. "Exports to North Africa rose by 63.5 per cent in 2024, and Sub-Saharan Africa posted a 26 per cent year-on-year increase during the first five months of 2025," he said. He noted that as the region increasingly depends on Malaysian palm oil to meet its edible oil requirements, this dialogue serves as part of Malaysia's effort to strengthen long-term partnerships and ensure sustained collaboration. Johari said Malaysia has long been one of the world's leading producers of palm oil, with approximately 5.7 million hectares of land planted with oil palm across Peninsular Malaysia, Sabah, and Sarawak. "It is an export-oriented sector for the Malaysian economy, with 15.4 million tonnes out of 19.3 million tonnes, or 80 per cent of the palm oil produced, being exported in 2024," he said.
New Straits Times
25-06-2025
- Business
- New Straits Times
Malaysia secures preferential market access for sustainable palm oil
KUALA LUMPUR: Malaysia has secured preferential market access and strong international recognition for its sustainable palm oil through the signing of the Malaysia-European Free Trade Association (Efta) Economic Partnership Agreement (Meepa). The agreement, signed on June 23, marks a significant milestone in Malaysia's trade relations with Efta member states, Switzerland, Norway, Iceland and Liechtenstein, and further strengthens bilateral cooperation on sustainability. According to Plantation and Commodities Ministry, under Meepa, Malaysian palm oil exporters will benefit from reduced import tariffs via a tariff rate quota mechanism, with reductions ranging from 20 to 40 per cent, depending on the product category. "Importantly, Malaysian Sustainable Palm Oil (MSPO) certification is a mandatory condition for exporters seeking to qualify for these reduced tariffs, placing the national sustainability standard at the heart of Malaysia's trade framework with Efta," it said in a statement. A joint statement on sustainable palm oil was also adopted as part of the agreement, recognising Malaysia's leadership in sustainable palm oil production and enhancing international confidence in MSPO-certified supply chains. The achievement was made possible through the collaborative efforts of the Investment, Trade and Industry Ministry and Plantation and Commodities Ministry. Meepa delivers three key outcomes, which include tariff reductions for MSPO-certified palm oil, international recognition of MSPO as Malaysia's official sustainability standard, and strengthened commitment to transparency, traceability, and deforestation-free supply chains. The agreement is seen as a boost to Malaysia's palm oil industry, enhancing its competitiveness in sustainability-conscious global markets while supporting smallholders and larger producers alike. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the agreement serves as a key reference point for Malaysia in ongoing Free Trade Agreement (FTA) negotiations with the European Union (EU). "The Plantation and Commodities Ministry views this agreement as an important reference point for Malaysia's position in the ongoing Malaysia-EU Free Trade Agreement negotiations with the 27 EU member states," he said. "The Plantation and Commodities Ministry will continue to work closely with the Investment, Trade and Industry Ministry to ensure that Malaysia's sustainability leadership, through MSPO, is fully reflected and protected in all future trade agreements, including with the European Union," he said. Johari also reaffirmed Malaysia's commitment to advancing a globally responsible palm oil industry. "Malaysia remains fully committed to driving global progress in sustainable, responsible and deforestation-free palm oil trade, with MSPO at the centre of these efforts," he said.
The Sun
22-06-2025
- Business
- The Sun
Johari: Hire local TVET grads or no foreign workers for plantations
KUALA KANGSAR: The Plantation and Commodities Ministry (MPIC) has mandated that plantation industry players must first hire graduates from Technical and Vocational Education and Training (TVET) programmes before considering the employment of foreign workers. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said industry players must provide proof of their efforts to hire TVET graduates to the ministry before they are permitted to recruit foreign workers. 'We are currently facing a situation where many industries are unwilling to hire graduates who have completed their training. They are reluctant to provide these students with the opportunity to gain practical experience because they prefer to take the easier route. 'Although the government has approved foreign workers for the plantation sector, I will not allow it unless industry players contribute to our local youth,' he said when met at the Dialog@MPIC session here today. Johari said the ministry will train about 250 TVET students annually in the plantation sector, and they will be placed in the industry based on the specific needs of the industry players. He said industry players must train these students until they become skilled and future specialists in the plantation sector. 'I want to commend Sime Darby and FGV for their dedicated initiatives to provide accommodation and decent salaries for young individuals who did not attend university. These youths can earn a salary of RM2,500 if they develop their skills and complete a TVET Level 3 qualification, and in another eight months, they could earn up to RM3,500. '...we must support these students in developing their careers. Otherwise, we're abandoning these youths, and that's not what we promised. Some industry players even refuse to hire them, and that's why I want to enforce this prerequisite. Currently, we depend on nearly 260,000 foreign workers to manage our plantations,' he said. Johari said the sector is vital as it represents the world's third-largest export industry, and within the national commodity sector, Malaysia exports approximately RM168 billion. He emphasised the need for industry players to take responsibility for mentoring and supporting these young talents.
The Sun
22-06-2025
- Business
- The Sun
Plantation firms must hire TVET grads before foreign workers
KUALA KANGSAR: The Plantation and Commodities Ministry (MPIC) has mandated that plantation industry players must first hire graduates from Technical and Vocational Education and Training (TVET) programmes before considering the employment of foreign workers. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said industry players must provide proof of their efforts to hire TVET graduates to the ministry before they are permitted to recruit foreign workers. 'We are currently facing a situation where many industries are unwilling to hire graduates who have completed their training. They are reluctant to provide these students with the opportunity to gain practical experience because they prefer to take the easier route. 'Although the government has approved foreign workers for the plantation sector, I will not allow it unless industry players contribute to our local youth,' he said when met at the Dialog@MPIC session here today. Johari said the ministry will train about 250 TVET students annually in the plantation sector, and they will be placed in the industry based on the specific needs of the industry players. He said industry players must train these students until they become skilled and future specialists in the plantation sector. 'I want to commend Sime Darby and FGV for their dedicated initiatives to provide accommodation and decent salaries for young individuals who did not attend university. These youths can earn a salary of RM2,500 if they develop their skills and complete a TVET Level 3 qualification, and in another eight months, they could earn up to RM3,500. '...we must support these students in developing their careers. Otherwise, we're abandoning these youths, and that's not what we promised. Some industry players even refuse to hire them, and that's why I want to enforce this prerequisite. Currently, we depend on nearly 260,000 foreign workers to manage our plantations,' he said. Johari said the sector is vital as it represents the world's third-largest export industry, and within the national commodity sector, Malaysia exports approximately RM168 billion. He emphasised the need for industry players to take responsibility for mentoring and supporting these young talents.
