Malaysia Commits to Global Leadership in Sustainable Palm Oil Industry

Malaysia is committed to becoming a global leader in sustainable agrocommodities, particularly in the palm oil industry, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. He made the statement during his keynote address at the 12th Singapore Dialogue on Sustainable World Resources, organized by the Singapore Institute of International Affairs.

In his speech, titled “Reinventing Commodities: Malaysia’s Competitiveness in Global Trade,” Johari outlined the transformation of the country’s palm oil sector through a circular economy model that embraces sustainability, innovation, and value creation across the entire supply chain. “Every part of the palm oil tree now creates value—from biodiesel and sustainable aviation fuel to biomass and biogas. We are moving beyond linear growth to build a regenerative model that supports economic resilience, energy security, and climate action,” he noted.

Johari also highlighted that waste materials, previously discarded, such as empty fruit bunches, mesocarp fiber, palm kernel shells, and palm oil mill effluent, are now being repurposed into renewable energy and value-added products. “Malaysia is encouraging all mill operators to transition to renewable energy systems within the next decade,” the minister added. He expressed concern over the European Union’s recent Deforestation Regulation (EUDR), which classified Malaysia as a “standard risk” country based on outdated 2020 FAO data. Johari stressed that Malaysia has implemented strict no-deforestation policies and developed its own certification system—the Malaysian Sustainable Palm Oil standard—ensuring traceability, compliance, and inclusivity for smallholders.

The minister reaffirmed Malaysia’s commitment to working with the EU Commission to secure fair recognition of the country’s progress by providing updated, science-based evidence to support its request for “low risk” status. Malaysia is also actively participating in international sustainability efforts, including commitments to net-zero emissions by 2050, methane reduction, and maintaining over 50% forest cover, a pledge dating back to the 1992 Rio Earth Summit.

As Chair of the Council of Palm Oil Producing Countries (CPOPC) and Co-Chair of the Forest, Agriculture, and Commodity Trade (FACT) Dialogue, Malaysia is championing science-based narratives and equitable global trade frameworks that do not leave producing nations behind. “Palm oil is not just an edible oil; it is a strategic asset. Its unparalleled yield efficiency makes it the most land-efficient crop to meet global edible oil demands without further deforestation,” Johari concluded, calling for deeper global collaboration to redefine the value of commodities based on their environmental, social, and governance (ESG) impact.

Tags: Malaysia, palm oil