Kuala lumpur: Malaysia is well positioned to leverage newly concluded trade agreements to promote its Malaysian Sustainable Palm Oil (MSPO) certification because sustainability standards are increasingly shaping global market access, said Deputy Prime Minister Datuk Seri Fadillah Yusof. He said sustainability requirements have become closely aligned with trade access worldwide.
According to BERNAMA News Agency, Fadillah emphasized that with strong MSPO certification and full traceability, Malaysia is poised to seize new opportunities. He stated that the MSPO certification remains the cornerstone of Malaysia’s credibility, embedding comprehensive environmental, sustainability, and governance principles across estates, mills, and smallholders. This was articulated during his keynote address at the Malaysian Palm Oil Board (MPOB) International Palm Oil Congress and Exhibition (PIPOC) 2025.
Fadillah highlighted that the Malaysia-European Free Trade Area Economic Partnership Agreement, signed in June 2025, marks a significant turning point. The agreement provides preferential access for MSPO palm oil, aligning sustainability with trade. Additionally, the Malaysia-United Arab Emirates Comprehensive Economic Partnership, effective October 1, 2025, expands Malaysia’s presence in the Middle East, a region increasingly important for downstream palm-based products.
He further noted the growth in regions such as Indonesia, Latin America, and Africa, indicating the unstoppable global momentum for palm oil driven by necessity, efficiency, and sustainability. Sub-Saharan Africa and ASEAN are also presenting rising demand.
Fadillah pointed out that palm oil accounted for 30% of global oils and fats, making it the most widely used vegetable oil in the world. Malaysia remains the second-largest producer, contributing 24% of global output in 2024 and 35% of global exports. On 5.6 million hectares, Malaysia produced 19.34 million tonnes of palm oil in 2024, showcasing world-leading productivity while enhancing its sustainability performance.
In 2024, Malaysia exported 16.9 million tonnes of palm oil to key markets including India, China, the European Union, Kenya, Trkiye, Japan, and the Philippines.