R&D boosts Malaysia's palm oil exports to RM103bil, says Johari Ghani
16/12/2025 (New Straits Times), Bangi - The export value of palm oil and palm-based products rose 3.7 per cent to RM103.0 billion in the January–November 2025 period, up from RM99.3 billion during the same period last year.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani attributed the steady growth to sustained investments in research and development (R&D), which have broadened the applications of palm oil across both food and non-food sectors worldwide.
"Continuous R&D is critical to ensure palm oil remains competitive and relevant. The wider its applications, the stronger and more sustainable the demand," he told reporters after the inauguration of the Malaysian Palm Oil Board (MPOB) Excellence Awards 2025 today.
Johari said the latest performance highlighted the resilience of Malaysia's palm oil industry despite global challenges, including unpredictable weather conditions and geopolitical uncertainties, with demand remaining firm from key importing countries.
"India remained Malaysia's largest market, importing 2.4 million tonnes or 17.3 per cent of total exports, followed by Kenya at 1.1 million tonnes, the European Union at 945,000 tonnes, China at 797,000 tonnes and the Philippines at 681,000 tonnes," he said.
Johari said the outlook for Malaysia's palm oil market remains positive, supported by the country's strong commitment to sustainability, including a strict no-deforestation policy and a shift away from expanding plantation areas.
"We are no longer opening new land. Instead, we focus on what we already have, 57 million hectares, improving yields from existing planted areas through better planting materials, good agricultural practices and the adoption of technology to reduce reliance on foreign labour," he said.
On sustainability, Johari noted that the global palm oil industry is facing an increasingly complex international regulatory environment, including the European Union Deforestation Regulation, the implementation of which has been deferred by the EU to Dec 30 next year.
However, he stressed that the postponement should be used to strengthen traceability, data harmonisation and compliance systems.
"The government, through the MPOB, must remain focused on ensuring the success of the National Traceability System.
"This comprises three key components, the Sawit Intelligent Management System, GeoSAWIT and the Malaysian Sustainable Palm Oil certification.
"Together, these platforms ensure sustainable palm oil production that aligns with international sustainability standards and supports the country's overall sustainability commitments," he said.
Addressing concerns over the ageing profile of oil palm trees, Johari said replanting remains a key priority, with the government encouraging a staggered approach to allow growers to continue earning income while renewing plantations.
Under this strategy, large estates and smallholders are advised to replant in phases rather than all at once, as newly planted trees typically take three to four years to mature and bear fruit.
To support replanting efforts, Johari said the government allocates RM100 million annually to assist independent smallholders with replanting costs, warning that without such support, yields would decline and livelihoods would be affected.
On calls for a moratorium on the windfall profit levy, Johari said the issue must be balanced against fiscal realities, noting that the government continues to bear a significant cost in subsidising cooking oil to keep prices affordable.
"At this moment, it is difficult for us to impose a moratorium on the windfall tax because the government is at the same time subsidising about RM1.4 billion for cheap cooking oil.
"Many small farmers also consume cooking oil, so the subsidy is one way the government supports them," he said.
Johari said the country's palm oil industry remains the third-largest contributor to national export earnings, supported by strong global demand and the expanding use of palm oil beyond cooking oil into higher-value applications.
"Palm oil prices currently stand at about RM4,000 per tonne, compared with RM1,800 to RM2,000 per tonne previously.
"This shows that the fundamentals of the palm oil industry remain solid," he said.