Malaysia: Government urges closer industry ties with MPOB to boost palm oil R&D

The government is inviting industry players to collaborate closely with the Malaysian Palm Oil Board (MPOB) to advance research and development (R&D) in strategic areas of the palm oil industry.

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said enhanced collaboration with MPOB would lead to the commercialisation of more innovations, benefiting both entrepreneurs and the agency.

“When entrepreneurs are confident in their R&D, about 70 per cent of it can be commercialised,” he told reporters at the MPOB Palm Oil Technology Transfer Programme (TOT) 2025, here on June 19, 2025.

“When that happens, they benefit, and so does MPOB, which can earn royalties for endorsing these innovations,” he added.

In his speech, Johari said one of MPOB’s initiatives is to collaborate with Kuala Lumpur Kepong Bhd’s subsidiary KL-Kepong Industrial Holdings Sdn Bhd, SALCRA in Sarawak and the Johor State Agriculture Corp to commercialise animal feed technology.

He said this initiative has the potential to significantly reduce import dependency and ensure the resilience of the local supply chain.

Johari added that MPOB will explore research into developing eco-friendly palm-based products to replace conventional, non-sustainable alternatives.

He said palm-based transformer insulating oil is currently being considered by Tenaga Nasional Bhd as a replacement for petroleum-based transformer oil in the country’s power substation network.

“Palm-based transformer oil has market potential estimated to reach a value of US$287 million by 2030,” he said.

To date, the commercialisation of MPOB technologies has generated more than RM5.9 billion in market value, contributing to operational efficiency and product value enhancement across the palm oil sector.

“I am confident that the MPOB TOT Programme will benefit industry players and all attendees by providing an opportunity to interact with technology inventors and research officers.

“This will also allow them to exchange views and feedback on the direction of research in line with industry and market needs,” Johari said.

Tags: palm oil, Malaysian Palm Oil Board, research and development