Malaysia eyes Japanese market with sustainable palm-based products under MSPO 2.0

Malaysia aims to expand the reach of its downstream and value-added palm-based products to Japan, particularly specialty fats, tocotrienols, red palm oil, and palm biomass-based medium-density fibreboard for housing and furniture applications.

In a statement on Friday, the Ministry of Investment, Trade and Industry (Miti) said Malaysia is accelerating its position as a global leader in sustainable commodity certification through the implementation of Malaysian Sustainable Palm Oil (MSPO) 2.0, a strengthened standard under the MSPO certification scheme.

Recently spotlighted at Expo 2025 Osaka during the Ministry of Plantation and Commodities’ (KPK) promotional programme, Miti said MSPO 2.0 underscores Malaysia’s commitment to positioning sustainable agriculture as a core pillar of future trade and economic diplomacy.

KPK Minister Datuk Seri Johari Abdul Ghani said MSPO 2.0 represents Malaysia’s firm declaration to the world that the country is serious about transforming its commodity sector, in line with global sustainability standards.

“We are embedding sustainability at every level, from smallholder farms to export shelves, and raising the integrity of our entire ecosystem. Not only that, we aim for the MSPO model to be replicated across all commodities,” he added.

During KPK Week at Expo 2025 Osaka, five strategic memoranda of understanding (MOUs) were signed across key commodity sectors — from palm-based biomass to sustainable pepper, kenaf innovation, and cacao exports — reflecting Malaysia’s multi-sectoral push for sustainable, high-value commodity development.

Miti added that Malaysia’s export credibility received a further boost this week through a newly formalised collaboration between MSPO and AEON Japan, representing a clear step towards enhancing certified product visibility in consumer-facing retail, with MSPO-labelled palm-based products already gaining shelf presence.

Meanwhile, Miti said the Malaysian Palm Oil Board (MPOB) — a research and development, as well as licensing agency under KPK — has also inked agreements and explored business opportunities for the oil palm agri-commodity sector at the expo, to advance trade development in Japan and the wider Asian region.

Currently, 86% of Malaysia’s palm oil cultivation is MSPO-certified, with the country targeting 95% certification by the end of 2025.

Under Budget 2025, RM50 million has been allocated to support MSPO implementation nationwide, including technical assistance, audit support, and traceability tools to help independent smallholders adapt more effectively.

Malaysia’s participation at Expo 2025 — led by Miti and involving MSPO, alongside over 21 ministries and 70 agencies under a unified national narrative — will see the Malaysia Pavilion hosting forums, product showcases, business matching sessions, and MOU signings throughout the 26-week event, positioning the country as a future-ready trade and investment partner.

To date, Malaysia has achieved 68% of its RM13 billion target in trade and investment leads for Expo 2025.