PUTRAJAYA: The commodities sector and commodity-based industries contributed RM19.65 billion to the gross domestic product (GDP) in the first quarter of 2026 (1Q 2026), up from RM18.95 billion a year ago, said Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad.
Exports of commodity-based products generated RM41.62 billion in the same period, she said. Nonetheless, she said this achievement should not be measured in numbers alone.
Increases in exports and productivity must be translated into greater value creation and higher smallholder incomes. More industry players and entrepreneurs must also benefit from the opening of new markets.
"When exports rise, we need to ask how more value can be created within the country. When productivity rises, we must ensure that grassroots-level income also increases,” she said at the monthly Plantation and Commodities Ministry assembly at the Malaysian Palm Oil Board (MPOB) here today.
"When new markets are opened, we must ensure that more industry players, entrepreneurs and smallholders benefit. That is the true measure of success," she said.
Amid the current backdrop of global economic uncertainty, which includes supply chain pressures, changing logistics costs and increasingly demanding sustainability requirements, she said the ministry must respond quickly to changes, maintain existing markets and explore new ones without neglecting shareholders’ interests.
"China remains one of the important markets for Malaysian agro-commodity products, as we strengthen the downstream sector and value-added products.
"At the same time, the agro-commodity exports to India have risen by more than 50 per cent in 1Q 2026 versus a year ago," she said.
This underscores the ministry's efforts to strengthen the downstream sector and expand markets for Malaysian value-added products, she said.
Noraini said the ministry will also continue to strengthen the energy transition agenda through the National Biodiesel Programme and the development of the biofuel industry, including exploring the use of used cooking oil to produce sustainable aviation fuel.
These developments show that the agro-commodity sector is no longer focused solely on agricultural output. It has become part of Malaysia's energy, technology, sustainability and future economic agenda, she said.
Noraini said MPOB also introduced nine new technologies through the MPOB Palm Oil Technology Transfer Programme 2026, and developed the Sawit Intelligent Management System and GeoSAWIT to strengthen industry traceability to meet global market requirements.
The ministry will continue the Salam Agrikomoditi Programme nationwide to reach more than 600,000 independent smallholders. Launched on July 25 in Negeri Sembilan, it aims to have the programme organised in smallholder areas nationwide.
"I want the programme to continue on an ongoing basis, from one state to another, so that the ministry’s presence can be felt by communities whose livelihoods depend on the agro-commodity sector," she said.
The ministry will also promote the BUDI AgriKomoditi, Malaysian Sustainable Palm Oil (MSPO) certification, agency advisory services and smallholder development programmes. - Bernama
