Kuala lumpur: Malaysia’s palm oil exports to the United States rose by 51.8 per cent, totaling 93,000 metric tonnes from January to May 2025, compared to 61,000 metric tonnes during the same period last year.

According to BERNAMA News Agency, the Ministry of Plantation and Commodities (KPK) highlighted that 65 per cent of these exports in 2024 consisted of certified sustainable products used in high-value goods, while 19 per cent comprised palm stearin, essential in the food and personal care industries.

Despite the US not being Malaysia’s primary market for palm oil, KPK acknowledged the impending 25 per cent tariff on Malaysian goods effective August 1, 2025. The ministry assured that efforts are being made to prevent any adverse effects on the country’s market position. ‘The ministry is always vigilant and proactive in monitoring developments in international trade policies to safeguard the country’s palm oil exports,’ KPK stated in a response on the Parliament’s website.

KPK was addressing concerns raised by Datuk Siti Aminah Aching (BN-Beaufort) regarding the tariff’s impact on Malaysian palm oil exports and global demand. The ministry, alongside the Ministry of Investment, Trade and Industry (MITI), is engaged in negotiations with the US to maintain fair and open trade relations.

Efforts are underway to ensure the sustainability of Malaysia’s palm oil exports through initiatives promoting high-tech downstream products like oleochemicals and biofuels. KPK is also enhancing the Malaysian Sustainable Palm Oil (MSPO) 2.0 certification to meet international standards, focusing on environmental, social, and governance (ESG) aspects. The Sawit Intelligent Management System (SIMS) has been introduced for traceability at the plantation level.

Additionally, the signing of new free trade agreements, including the Malaysia-UAE Comprehensive Economic Partnership Agreement and the Malaysia-EFTA Economic Partnership Agreement (MEEPA), aims to broaden market access, reduce tariffs, and encourage foreign investment in the commodity sector.

The comprehensive measures by KPK and related agencies are designed to keep Malaysia’s palm oil industry competitive, boost exports, and uphold the nation’s reputation as a sustainable and ethical palm oil producer, crucial for continued interest from developed countries like the US.