05/05/2025 (Bernama), Kuala Lumpur - The palm oil sector is a key driver for Malaysia’s inclusive economic development and global sustainability, making it the country’s most valuable agricultural export, said the Datametrics Research and Information Centre (DARE).

In a statement today, DARE said its report, Advancing Sustainability in Malaysia’s Palm Oil Industry, found that the sector contributed RM114 billion in export value and RM38.05 billion, or 2.3 per cent, to Malaysia’s gross domestic product in 2024.

The report noted that 26.4 per cent of Malaysia’s total oil palm planted area, approximately 1.48 million hectares, is managed by smallholders, supporting nearly 450,000 families and rural communities.

“Since 2019, Malaysian palm oil production has not exceeded 19.85 million tonnes, partly because the oil palm plantation area has decreased by 4.2 per cent (247,588ha) over the past four years, due to Malaysia’s decision to refrain from expanding into new areas to prioritise environmental concerns,” it said.

The Malaysia-based think tank said its analysis shows the Malaysian Sustainable Palm Oil (MSPO) scheme has become a crucial tool in ensuring palm oil production aligns with international environmental and social standards.

As of March 2025, over 3.86 million hectares of plantations have been certified under MSPO, including nearly 645,000ha operated by independent smallholders.

DARE managing director Pankaj Kumar urged continued investment in the MSPO, including targeted aid to help smallholders meet the updated certification standards.

“We advocate for Malaysia to position the MSPO more assertively in global dialogues, especially as a credible and inclusive standard aligned with the United Nations Sustainable Development Goals,” he said.

He noted that the MSPO also provides an inclusive, transparent framework that empowers smallholders and holds producers accountable to ethical, environmental, and traceability benchmarks.

“As the world turns its attention to deforestation-linked supply chains, Malaysia must double down on communicating its progress.

“The MSPO 2.0 standard, which is now fully enforced, strengthens our ability to meet global sustainability demands, particularly from the European Union and other discerning markets,” he added.

— Bernama

https://selangorjournal.my/2025/05/palm-oil-exports-reach-rm114-bln-in-2024/