Newly appointed Minister of Investment, Trade and Industry Datuk Seri Johari Abdul Ghani.
BANGI: Malaysia’s palm oil industry is expected to remain stable and competitive next year, driven by continued emphasis on research and development (R&D), yield improvements and sustainable practices in line with global market requirements, says newly appointed Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani.
The minister said the industry’s direction for next year will no longer depend on opening new planting areas but will instead focus on increasing productivity within the roughly 5.7 million hectares already under cultivation, in line with the country’s commitment to halt deforestation and ensure environmental sustainability.
“We are no longer opening new areas for planting. The world today wants sustainable palm oil. So our focus is on raising yields through the use of quality planting material, good agricultural practices and technology that can reduce dependence on foreign labour,” he told reporters after attending the Malaysian Palm Oil Board (MPOB) Excellence Awards 2025 here yesterday.
Johari said the strategy would continue to be supported by R&D to explore new applications for palm oil, not only in the food sector but also in non-food products, thereby expanding the commodity’s uses and added value globally.
Commenting on MPOB’s role, he said the agency had made significant contributions to the development of the country’s palm oil industry, particularly through consistent, high-impact R&D for more than two decades.
“In about 25 years, more than 700 R&D projects have been carried out, and roughly 200 of them have been commercialised.
“This has dramatically increased the use of palm oil, including in food and non-food products in many countries,” he said.
Johari emphasised that continuity in R&D would be crucial to ensure the palm oil industry continues to grow, with applications that keep expanding and could be commercialised effectively.
He said that as a result of those efforts, the country’s palm oil exports had reached around RM95bil annually from 2022 to 2024, opening broad economic opportunities for Malaysians, not only in employment but also in entrepreneurship.
Regarding the sector’s medium-and long-term direction, the minister stressed that replanting would be among the main priorities to be undertaken in phases to ensure sustainable yields.
“Replanting cannot be done all at once. Whether by large companies or smallholders, it needs to be in phases so that income can still be generated, as the new palms take three to four years to bear fruit,” he said.
He added that the government allocates around RM100mil annually to help smallholders replant, ensuring their yields do not decline and family welfare is maintained.
Meanwhile, when asked whether increased production would lower prices, Johari said crude palm oil prices largely depend on demand and the diversity of its applications.
“There would be a certain price ceiling if we limit consumption to cooking oil alone.
“But as applications broaden, demand rises, and prices stay firm, currently around RM4,000 per tonne, compared with RM1,800 to RM2,000 previously,” he said.
The minister added that this showed that support for the country’s palm oil industry remained strong, driven by a sustainable demand and added value through ongoing innovation. — Bernama
