Kuala Lumpur: The Ministry of Plantation Industries and Commodities (KPK) in Malaysia is setting its sights on achieving zero crude palm oil (CPO) exports in the future by enhancing the production of downstream products.
According to BERNAMA News Agency, Datuk Seri Johari Abdul Ghani, the minister of KPK, highlighted that out of the 19.3 million tonnes of CPO produced last year, only three million tonnes were exported, with the majority being processed into downstream products. The ministry’s plan is to ensure that all of the country’s CPO is processed locally, dedicating 80 percent to cooking oil and food products, while the remaining 20 percent will be used for industrial purposes.
Johari emphasized Malaysia’s robust ecosystem, noting the shift from exporting 80 percent of CPO output to processing it at 53 refining plants, 21 oleochemical factories, and 19 biodiesel plants. He urged industry players to consider establishing oleochemical plants in Sabah and Sarawak, as these states, which host 3.1 million hectares of palm oil plantations, currently lack such facilities. This represents a significant opportunity for downstream industry development.
On the topic of national replanting efforts, Johari pointed out the current replanting rate of 2.0 percent is below the required 4.0 percent. To address this, he mentioned the ministry’s readiness to request additional government allocations if necessary. The government has already allocated RM100 million for replanting initiatives to maintain competitive palm oil yields against soybean oil, which is priced lower.
For the rubber sector, Johari stated that KPK will continue supporting smallholders with various incentives to boost natural rubber production. Active smallholders, who contribute 348,000 tonnes of rubber, will benefit from incentives such as rubber and latex production bonuses and the introduction of new technology. Promoting good agricultural practices, including the use of quality fertilizers and seedlings, is also part of the strategy to enhance latex production.
Johari noted that the downstream industry demands 1.6 million tonnes of natural rubber, yet local smallholders produce only 350,000 tonnes. Consequently, Malaysia has been importing rubber from Vietnam, Thailand, and Ivory Coast to fulfill this demand. The Malaysian Rubber Board (MRB) is actively conducting research to develop high-performance rubber clones with strong disease resistance, which Johari believes will eventually reduce the need for imports.