PETALING JAYA: As uncertainty looms over the worsening crisis in Iran, the Malaysian Palm Oil Board (MPOB) has encouraged local businesses trading with the United States to strengthen compliance, review risks and diversify markets to reduce potential shocks.
MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir (pic) said Malaysia-Iran trade includes palm-based products, and any potential exposure to the conflict would depend on how the United States reacts to the developing geopolitical situation in the coming days.
He said the MPOB will be working closely with the Investment, Trade and Industry Ministry, the Plantation and Commodities Ministry, and the relevant agencies to assess further developments on the situation.
“In the meantime, businesses, particularly Malaysian palm oil exporters, are encouraged to strengthen trade and compliance due diligence, review contractual and market exposures where the US market is involved and continue diversifying export destinations besides moving up the value chain to reduce vulnerability to external policy shocks affecting the commodity,” he said.
Ahmad Parveez said Malaysia remains a sovereign nation with the right to decide its trading partners based on national interest and applicable laws.
“Should any new and emerging measures create uncertainties to its strategic interests, due diligence and assessment will be conducted by relevant ministries to appropriately address them as a nation,” he told The Star.
Ahmad Parveez also said Malaysia, as one of the founding members of the World Trade Organisation (WTO), has consistently supported a predictable, rules-based multilateral trading system.
He also said Malaysia actively participates in WTO negotiations to ensure trade rules are fair and provide necessary flexibility for Malaysia’s trade development policy.
“As a member of the WTO, and in accordance with WTO agreements, Malaysia is entitled to non-discriminatory treatment in the markets of other WTO members, including most-favoured nation treatment, whereby no country may discriminate between its trading partners,” he added.
In 2024, Malaysia’s total trade with Iran was valued at RM2.6bil, up 24.6% from the previous year, with exports largely consisting of palm oil and imports mainly Iranian oil and gas products.
On Monday, US President Donald Trump said any country that trades with Iran will face an additional tariff rate of 25%.
