Palm Downstream Tribune Vol 4 No 4 by mapsglobe

PALM DOWNSTREAM TRIBUNE

Philippine’s Rising Demand for Palm Oil in a Dynamic Landscape

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FRONT COVER

5-9

Indonesia To Expand Biodiesel Capacity to Achieve B50 Target

e vote followed concerns about stakeholders’ readiness to comply, both globally and within the EU. While the European People’s Party (EPP) proposed extending the delay to two years and exempting traders from the regulation, these amendments were rejected. However, a "no risk" category for countries with minimal deforestation concerns was approved. Environmental groups have criticised the delay, arguing that it weakens the regulation and undermines e orts to protect global forests. WWF called for EU President Ursula von der Leyen to withdraw the delay, warning that it could derail the Green Deal’s objectives. On the other hand, some European companies, including Mars, Danone, and Nestlé, support the immediate implementation of the EUDR, having already invested in compliance measures. Following the vote, the legislation will undergo further negotiations before being nalised and entering into force.

ailand cuts palm oil

ailand's Ministry of Energy recently announced that it will reduce the palm oil content in its biofuel from 7% to 5% in response to rising palm oil prices. is decision, approved by the Energy Policy and Planning O ce (EPPO) last ursday, aims to alleviate the cost burden of biofuel production.

E ective from November 21, the move will shi the country's biofuel from the current B7 blend—7% palm oil-based biodiesel and 93% petroleum diesel—to B5, which consists of 5% palm oil-based biodiesel and 95% petroleum diesel. ai Deputy Prime Minister and Energy Minister, Pirapan Salirathavibhaga, assured the public that the change will not negatively a ect vehicle engine performance.

e price of biodiesel has risen in recent months, with the cost of crude palm oil pushing retail prices to at least 48 THB per liter. Since May 1, 2024, ailand discontinued B10 biodiesel, leaving B7 and B20 as the two main options on the market. e B7 biofuel will now simply be referred to as "biodiesel," while B20 will retain its name.

e Ministry has also informed the National Palm Oil Policy Committee about this adjustment, aiming to balance biofuel costs while maintaining vehicle engine performance standards.

As the world’s top palm oil producers, Indonesia and Malaysia account for 84% of global palm oil supply, but their production is increasingly scrutinized for environmental impact, particularly deforestation and emissions. e European Union’s Deforestation Regulation (EUDR) mandates traceability of deforestation and requires companies to ensure their supply chains are deforestation-free. is has placed signi cant pressure on palm oil producers to address Scope 3 emissions, which include indirect emissions from activities like transportation, waste management, and purchased goods throughout the supply chain.

Technology Key to Reducing Scope 3 Palm Oil Emissions in Malaysia

For Malaysia’s palm oil sector, including smallholders responsible for a large share of production, implementing digital solutions for real-time traceability is critical. e fragmented nature of the supply chain makes it di cult to track emissions e ectively, with traditional methods like satellite data proving insu cient for detailed reporting required by regulations. Leveraging digital transformation can help companies integrate their supply chains, making them more e cient and compliant with new sustainability standards.

Tools like MioTech’s so ware can support palm oil companies by providing insights into indirect emissions and helping them meet Science-Based Targets initiative (SBTi) goals. Similarly, platforms such as DIBIZ o er authenticated traceability to help smallholders meet regulatory requirements. While these solutions are essential for meeting immediate compliance, they also support long-term sustainability by improving emissions tracking and reducing environmental impact across the supply chain.

To successfully decarbonise, Malaysia’s palm oil industry must invest in digital tools that ensure traceability and reduce Scope 3 emissions, contributing to both regulatory compliance and broader sustainability goals.

Untapped Biomass of Oil Palm

(23 Oct 2024)

e Oils and Fats International Congress (OFIC) 2024, the brainchild of Tan Sri Augustine Ong, continues to highlight the vast, untapped potential of palm oil. Drawing 500 global participants, the 2024 international event featured leading scientists who reinforced palm oil’s critical role in diverse industries. Ong, a tireless advocate for palm oil, emphasized its economic prospects in sectors such as energy and pharmaceuticals.

Notably, Professor Loh Teck Peng from Singapore’s Nanyang Technological University presented compelling data on palm oil's future, particularly in biofuels and oleochemicals. Palm oil's applications in biodiesel and second-generation biofuels using by-products like empty fruit bunches could signi cantly reduce carbon emissions. Additionally, palm oil’s role in producing oleochemicals for products ranging from biodegradable plastics to personal care items o ers substantial economic growth potential.

Palm oil’s health bene ts were also spotlighted, with tocotrienols—an antioxidant form of vitamin E found in palm oil—being explored for their role in preventing chronic diseases. Innovations in using palm oil by-products for animal feed and bioenergy further enhance the industry's sustainability.

e congress also introduced P90, a blend of red palm oil and olive oil, aimed at the beauty and wellness markets. With continued research into its medicinal properties, red palm oil is poised to meet the growing demand for natural, sustainable ingredients in cosmetics and health products.

As Malaysia and Indonesia lead global palm oil production, they are encouraged to amplify communication about palm oil’s environmental and economic contributions, promoting its role in a sustainable future.

Bursa Malaysia Derivatives Exchange (BMD) is preparing to launch its new used cooking oil (UCO) futures contract as early as December 2024, pending nal regulatory approvals, according to Director Mohd Saleem Kader Bakas. Speaking at an oilseed conference in Dalian, China, he noted that the contract could also debut in the rst quarter of 2025 if approval processes extend.

Bursa Malaysia aims to launch used cooking oil (UCO) futures

e UCO futures will complement BMD's existing o erings, including the soybean oil futures launched in March 2024. Renowned for hosting the world’s most liquid crude palm oil futures market, BMD aims to position itself as a regional hub for edible oils. Used cooking oil plays a critical role in the production of renewable biofuels, a sector witnessing rapid growth driven by global sustainability e orts and biofuel mandates. Malaysia, as the second-largest global producer of palm oil, exported nearly 300,000 metric tons of biodiesel in 2023 while consuming approximately 1.1 million tons domestically.

"We are observing increasing demand for used cooking oil due to sustainability trends and regional biofuel policies," Mohd Saleem stated. He highlighted that the forthcoming UCO futures contract is speci cally tailored to the Southeast Asian market, aligning with regional industry needs and growth trends.

IOI oleochemical

business set for robust 1H25

IOI Corporation Bhd’s oleochemical division is projected to perform robustly in the rst half of FY2025, buoyed by improved selling prices and steady demand from Europe. According to AmInvestment Bank Research, European buyers have been stockpiling palm-based products since mid-2024, preparing for the European Union Deforestation Regulation (EUDR). is trend is expected to continue into early 2025, albeit at a slower pace compared to late 2024.

e average price of crude palm kernel oil (PKO), a key feedstock for fatty acids, rose by 27% year-on-year to RM4,989 per tonne in the rst nine months of 2024, re ecting heightened demand. Under the EUDR, palm products sourced from deforested areas post-December 31, 2020, are prohibited, with non-compliance penalties set at 4% of turnover. Despite the regulation's enforcement delay to December 2025, IOI has proactively ensured compliance.

AmInvestment Bank forecasts IOI's manufacturing segment, encompassing re ning and oleochemicals, will see its EBIT grow by 68.2% to RM303 million in FY2025, with an improved EBIT margin of 3%, up from 2% in FY2024. is follows a strong performance in FY2023, when EBIT peaked at RM660.6 million. In the upstream sector, IOI’s fresh fruit bunch output is expected to grow by 5% in FY2025, with CPO production costs reducing to RM2,230 per tonne from RM2,330 in FY2024. However, the research house revised IOI’s FY2025 and FY2026 net pro t forecasts down by 6% and 9%, respectively, citing potential in ationary pressures and a possible hike in Malaysia’s minimum wage.

Oct 2024)

Jakarta – Coordinating Minister for Economic A airs Airlangga Hartarto has con rmed that Indonesia’s mandatory B40 biodiesel programme, featuring 40 percent palm oil content, will launch as planned on 1 January 2025. Speaking at the 12th Ministerial Meeting of the Council of Palm Oil Producing Countries (CPOPC) in Jakarta, Hartarto emphasised that the government is committed to boosting palm oil production to meet B40 quotas. Hartarto noted that the B35 program has already helped Indonesia reduce CO2 emissions by about 32 million tons. With B40, the country aims to cut emissions by over 40 million tons, reinforcing its global climate action e orts.

Indonesia to Implement B40 Biodiesel Programme Starting

January 2025

Malaysian Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani praised Indonesia’s B40 initiative as a signi cant step toward reducing global carbon emissions. He highlighted the essential role of palm oil, stressing that biodiesel derived from it has e ectively reduced emissions in the energy sector. Eddy Abdurachman, President Director of the Palm Oil Plantation Fund Management Agency (BPDPKS), pointed out that the B40 program not only stabilises domestic palm oil prices but also strengthens the domestic market by utilising palm oil as a key biodiesel feedstock. is initiative supports Indonesia's downstream industry and sustainable market growth.

China's Palm Oil Players Encouraged to Invest in Malaysia

(18/12/2024)

Malaysia is encouraging Chinese palm oil companies to explore opportunities in its downstream sector, focusing on sustainability and modernisation. Speaking at the Malaysia-China Summit 2024, Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani highlighted three key areas for collaboration.

Firstly, Malaysia aims to expand its circular economy initiatives by converting palm oil waste into green energy through biomass and biogas. Johari noted that upgrading half the country’s mills with biomass and biogas technologies could generate up to 1,100 MW of energy at over 200 locations.

Secondly, sustainable aviation fuel (SAF) presents a promising opportunity, with Malaysia planning to make SAF mandatory for ights by 2027, starting with a 1.0% blending mandate.

irdly, investments in modernising palm oil mills are sought, particularly to integrate advanced technologies like arti cial intelligence, which can improve e ciency and reduce oil losses.

Malaysia’s long-standing relationship with China, supported by the Malaysian Palm Oil Board (MPOB), further enhances its attractiveness as a partner. PORTSIM, MPOB’s Shanghai-based research institute, celebrates 20 years of collaboration. With its robust infrastructure, sustainability certi cations, and focus on boosting yields without expanding land use, Malaysia o ers a competitive edge and potential for green energy innovations.

Genting Plantations Bhd is poised for a robust fourth quarter in 2024 (4Q24), driven by peak fresh fruit bunch (FFB) output and higher crude palm oil (CPO) prices. Analysts remain optimistic yet cautious, highlighting the challenging downstream landscape.

Maybank IB Research anticipates Genting Plantations' strongest quarterly earnings as Indonesia's crop recovery accelerates, though full-year FFB output may remain at year-on-year due to earlier setbacks. e research house upgraded its pro t forecasts for 2024-2026, raising the target price to RM6.96, while maintaining a "buy" call.

However, downstream operations face headwinds from Indonesian competition, policy changes, and re nery overcapacity, potentially impacting margins. Biodiesel pro tability o ers some respite, while upstream performance remains solid.

Genting Plantations Eyes Strong 4Q24 Amid Downstream Challenges

CGS International Research holds a "neutral" view, citing risks such as pricing competition and slower property development. Despite challenges, improved CPO sales and stronger upstream contributions underline a promising outlook for Genting Plantations.

Johor Plantations Group Awards

RM39.04 Million iSPOC Project to TLD

Johor Plantations Group Berhad (JPG) has awarded a RM39.04 million contract to Tg. Langsat Development Sdn Bhd (TLD) for its Integrated Sustainable Palm Oil Complex (iSPOC) in Pasir Logok Estate, Kota Tinggi. e contract, secured through a tender process, includes earthworks, infrastructure development, sewage treatment plant construction, and related works.

Scheduled for completion by the second half of 2026, iSPOC will integrate palm oil milling, specialty oils re ning, renewable energy generation, kernel crushing, and animal feed production into a single complex. is initiative aims to enhance e ciency, expand JPG’s value chain, and strengthen competitiveness in the industry. TLD, a subsidiary of TPM Technopark under Johor Corporation, brings extensive experience in infrastructure projects, including its ongoing work at Sedenak Technology Park. e iSPOC project is poised to drive economic growth, create jobs, and bolster Johor’s economic transformation e orts.

e Bene ts of Palm Oil for the Human Brain

Palm oil, derived from the fruit of the oil palm tree (Elaeis guineensis), has long been recognised for its versatility in food, cosmetics, and industrial applications. However, its nutritional pro le has sparked interest for its potential bene ts to human health, particularly for the brain. is article delves into how palm oil can support cognitive function and overall brain well-being.

Palm oil is a nutrient powerhouse with profound bene ts for brain health. Its bioactive compounds, including tocotrienols, palmitic acid, oleic acid, linoleic acid, medium-chain triglycerides (MCTs), and carotenoids, make it a valuable addition to a brain-boosting diet. Numerous preclinical and human studies have demonstrated palm oil's signi cant role in brain function, showcasing its ability to crossthe blood-brain barrier and positively in uence neural health.

e Brain and Oxidative Stress

e brain is highly vulnerable to oxidative stress due to its high oxygen demand, large amounts of delicate fats called polyunsaturated fatty acids (PUFAs), and relatively low natural antioxidant defences. Oxidative stress can damage neurons, which are less protected than other brain cells, triggering harmful chain reactions like lipid peroxidation. is process produces toxic by-products that contribute to cell death, particularly in injured brain tissue.

Palm Oil: A Nutrient Powerhouse for Brain Health

Knowledge Nugget

Tocotrienols: Palm Oil's Brain Protector

Vitamin E-rich tocotrienols have been found to protect the brain against damage caused by oxidative stress. Unlike other forms of vitamin E, tocotrienols from palm oil have unique properties that make them highly e ective. ey penetrate brain tissues more easily, prevent oxidative damage to fats, and block speci c harmful enzymes and pathways involved in brain injury.

Animal and human studies suggest that tocotrienols in palm oil may protect delicate polyunsaturated fats in the brain, slow dementia progression, reduce stroke risk, and prevent the growth of brain lesions. Beyond the brain, tocotrienols also show potential in addressing conditions like cancer and high cholesterol, underscoring palm oil’s wide-ranging health bene ts.

Palmitic Acid: Supporting Structural Integrity

Another critical nutrient found in palm oil is palmitic acid, a saturated fat essential for maintaining the structural integrity of brain cell membranes. It is esteri ed into the brain's membrane phospholipids, with signi cantly higher uptake in gray matter compared to white matter. Gray matter, the brain region responsible for processing information, memory, emotions, and motor control, is crucial for cognitive function and adaptability. Maintaining gray matter integrity is essential, as its decline is linked to conditions like Alzheimer's and schizophrenia. is process supports the structural integrity and uidity of neuronal membranes, which are vital for proper brain function.

Oleic Acid and Linoleic Acid: Essential Fats for Brain Development

Palm oil also contains signi cant amounts of oleic acid, a monounsaturated fat, and linoleic acid, an omega-6 fatty acid. ese essential fats are crucial for brain development and function. Oleic acid helps maintain the uidity of cell membranes, ensuring that neurons communicate e ectively. It is also associated with improved mood and reduced symptoms of depression. Linoleic acid, on the other hand, plays a pivotal role in neural signaling and cognitive growth, particularly during early development.

Medium-chain triglycerides (MCTs)

Medium-chain triglycerides (MCTs), derived from palm oil, provide a vital energy source for the brain, particularly in individuals with Alzheimer’s disease (AD). AD is characterised by reduced glucose metabolism in key brain regions due to cerebral insulin resistance, impaired glucose receptors, and abnormal glucose pathways. is hypometabolism, detectable in early stages, leads to cognitive decline.

MCTs serve as a source of ketones, an alternative energy substrate for the brain. Research shows that ketones are preferentially utilised over glucose and that the brain's ability to metabolise ketones remains relatively intact in AD patients. Clinical studies have demonstrated that consuming MCTs can elevate blood ketone levels, correlating with improved cognitive function in individuals with mild cognitive impairment (MCI) and AD. is positions palm oil as a promising dietary intervention to support energy metabolism and cognitive resilience in neurodegenerative conditions.

Carotenoids

Carotenoids, the pigments responsible for the vibrant red color of unre ned palm oil, also contribute to brain health. As powerful antioxidants, they neutralise free radicals and protect brain cells from oxidative damage. Carotenoids are precursors to vitamin A, which is essential for vision and cognitive function. eir role in maintaining long-term brain health cannot be overstated, as they help delay the onset of cognitive decline and enhance memory retention.

Palm oil’s rich nutrient pro le makes it a compelling dietary addition for supporting brain health. Its bioactive compounds—tocotrienols, palmitic acid, oleic acid, linoleic acid, MCTs, and carotenoids—address various aspects of cognitive function, from enhancing antioxidant defences and providing alternative energy sources to maintaining neuronal integrity and fostering brain development.

As research continues to unravel its bene ts, palm oil emerges as a natural ally in promoting cognitive resilience and overall brain health, particularly in ageing populations and individuals at risk of neurodegenerative conditions. Incorporating palm oil into a balanced diet could prove invaluable for maintaining long-term brain function and overall well-being.

Compiled by Zahidah Zahidi

Philippines’

Rising Demand for Palm Oil in a Dynamic Economic Landscape

e Philippines concluded 2023 on a high note, emerging as the fastest-growing economy in ASEAN with a growth rate of 5.6%. Looking ahead to 2024 and 2025, the Philippines is expected to continue its robust performance with a projected growth rate of 6.2%, showcasing its resilience amidst various global economic pressures.

Vietnam: Fastest Growing Economy in Asia (One IBC®)

e Philippines is the world’s largest coconut oil producer, responsible for 51% of global production. In 2023, the country produced 1.2 million tonnes of coconut oil, of which 90% was exported due to its premium prices, leaving limited quantities for domestic use. e country’s oils and fats consumption rely heavily on imports. Palm oil serves as a direct substitute due to its lower price, making it a vital import commodity. Palm and palm kernel oil were the most imported oils in the Philippines, totalling 939,000 tonnes in 2023 and making up 87% of the country’s total oils and fats imports.

Palm Oil Market Share in the Philippines

Malaysian palm oil had a market share of 40% to 50% over the past ve years, and Malaysia is gradually reclaiming market share a er the Covid-19 pandemic. According to MPOB export data, RBD Palm Olein, RBD Palm Oil, and Cooking Oil are the most imported products in the Philippines, accounting for 99% of Malaysia’s total palm oil exports to the country.

1.Key Sectors:

As the Philippine economy grew faster than other Southeast Asian economies in 2023, the market presents strong opportunities for Malaysian palm oil.

Food Industry:

Cooking Oil:

According to Euromonitor, the top three vegetable oil companies in the Philippines dominate 80% of the country’s cooking oil market.

Top 3 Cooking Oil Players in the Philippines (Source: Euromonitor)

Food Industry:

Noodle:

According to the World Instant Noodle Association, the Philippines ranked seventh in instant noodle consumption in 2023, with 4.39 billion servings consumed annually. In terms of market share for instant noodles, the top three companies dominate 88% of the market in the Philippines.

Food Industry:

Fast Food:

e top ve fast food brands by number of outlets in the Philippines are Jollibee, McDonald’s, Chowking, Mang Inasal, and Shakey’s Pizza. According to a market survey by the research rm Cint, 46% of Filipinos eat fast food one to three times a week on average. Fast food is also the most popular type of food ordered from delivery apps in the Philippines. Jollibee is the largest fast food chain in the country, holding a 29% market share according to Statista.

Major fast food chains are planning to expand their number of outlets to accommodate the growing urbanisation rate (48%) and rising population. For example, Jollibee aims to open 100 new stores in the Philippines in 2024, while McDonald’s plans to open 60 new stores across the country and an average of 50 new stores annually over the next few years. e demand for palm oil is expected to increase in tandem with the growth of the food service sector.

Top 3 Instant Noodle Players in the Philippines (Source: Euromonitor)

Top 5 Fast Food Chains in the Philippines by Number of Outlets in 2022 (Source: Statista)

2. Biofuels:

e Philippine government has been promoting biofuels as part of its energy diversi cation strategy. In June, the Philippines began allowing fuel retailers to blend gasoline with up to 20 percent ethanol (E20), making its biofuel policy one of the most progressive in the world. e Philippines' Department of Energy (DOE) has also issued a mandate to increase biodiesel blend from 2% to 3% starting in October 2024. Under the new guidelines, downstream oil companies are required to implement a 3% coco methyl ester (CME) blend in all diesel fuel sold across the Philippines. is blend will gradually increase to 4 percent by October 2025, and to 5 percent by October 2026. e government agencies with the National Biofuel Board (NBB) also created a Sustainable Aviation Fuels (SAF) committee to develop the SAF roadmap. One of the potential feedstock for SAF production is Used Cooking Oil (UCO). FPI chairman Jesus Arranza said the possible use of palm oil for biodiesel production was proposed amid skyrocketing fuel prices.

Anna Mikko G. Realo, OIC-Chief of the Biomass Energy Management Division at Department of Energy at the 11th “ e Everything Energy (TEE)” Forum conducted by the Philippine National Oil Company.

Challenges:

In 2023, the Philippines palm oil imports dropped by 21% to 939,000 tonnes from 1.1 million tonnes in 2022, as coconut oil prices were only slightly higher than palm oil prices from January to September 2023. Coconut oil prices further deteriorated and were on par with palm oil from October 2023 to March 2024. Palm oil imports in the Philippines are expected to rise by 105,000 tonnes, reaching 1.05 million tonnes in 2024. According to Oil World data, Malaysia and Indonesia combined palm oil exports to the Philippines increased by 4,100 tonnes (2%) in the rst quarter of 2024, totalling 206,000 tonnes.

Conclusion

e Philippines represents a viable market for expansion, with growing demand across multiple sectors. Philippines oils and fats consumption ranges between 1.5 to 1.7 million tonnes per annum, with palm oil constituting 77% of this total, indicating signi cant growth potential. Additionally, under the ASEAN Trade in Goods Agreement (ATIGA), the tari for crude and re ned palm oil is 0% (HS code: 151190).

Knowlegde Nugget

Tales from Food-Origin Wars

By Joseph Tek Choon Yee (josephtekcy@gmail.com)

During the lockdowns of Covid-19, my family and I stumbled upon the anime Shokugeki no Soma (Food Wars) – a series as dramatic as it is delicious. It follows 15-year-old Souma Yukihira, whose dream of running his family’s diner gets a major plot twist when his dad dares him to enrol in Tootsuki Culinary Academy, a cut-throat school where only 10% survive (academically, not literally!). Souma dives into the chaos of culinary battles, whipping up dishes so enticing they’ll have you drooling on your couch. Fair warning: don’t watch on an empty stomach!

And speaking of food wars, it’s the perfect appetiser for my next story on Food-Origin Wars.

e question of where a dish of food truly originates has always fascinated me. Is food simply a product of the land, or does it take on a life of its own, evolving through the hands of di erent people across time and space? It’s a curious thing - countries vying for the title of "creator" of iconic dishes, each one asserting a deep connection to its culinary heritage. But food doesn’t always stay con ned to borders. Sometimes, a dish starts in one place, then travels, adapting and morphing into something else entirely when it nds a new home.

I was reminded of this very idea during my days in Cambridge, where I rst encountered the Phaal, a curry so ery it le me questioning my own taste buds. at experience got me thinking about how food transcends borders and becomes a shared obsession. In that story, I re ected on how when the British le India a er colonisation, they didn’t just return with tales of tiger hunts or monsoons - they brought back a newfound love for curry. Over time, this love a air was transformed, creating what we now consider the British curry house staple. Which brings me to an intriguing question: Is Chicken Tikka Masala a good example of a “food war” between India and Britain?

is dish, consisting of roasted chicken chunks bathed in a spiced curry sauce, has become one of the most beloved meals in Britain. So much so, that in 2009, the UK government declared it “a true British national dish.” Yet, the origins of Chicken Tikka Masala remain shrouded in mystery. Some argue it hails from the Punjab region of India, while others insist it was created in Glasgow, Scotland. Ethnic-food historians speculate that the dish was likely invented in Britain, probably by a Bangladeshi chef. is then led me down a rabbit hole, desk-top searching for other famous food-origin wars. And, to my surprise, there are more than I ever imagined. All around the world, beloved dishes are involved in epic culinary battles, each claiming supremacy, o en with no clear winner in sight.

1.Meatballs – Swedish vs Turkey

Now, if you ever nd yourself wandering into the Ikea store in Damansara - or anywhere, really - you may notice something curious: it’s not the furniture that has the longest lines. Nope, it’s the Swedish meatballs. Yes, those little balls of joy are as iconic as at-packed shelving units and "easy-to-assemble" instructions. But, as the shocked Swedes discovered, their beloved meatballs - dear to their national identity - are, in fact, Turkish. "Say what?" you might ask.

at’s right. Swedish meatballs, which are proudly considered Sweden’s national dish, actually trace their origins back to King Charles XII, who allegedly brought the recipe home from Turkey in the early 18th century. It turns out that the king, who spent years in the Ottoman Empire, tucked a meatball recipe into his luggage on his way back to Sweden. So, as it turns out, meatballs, much like at-pack furniture, have international roots! is shocking revelation didn’t go unnoticed.

e Swedes took to Twitter, expressing disbelief and a touch of culinary heartbreak, as the national dish was unravelled like a poorly assembled bookshelf. A er all, it’s one thing to discover your furniture has a complex assembly process - but your meatballs? at’s a whole di erent level of betrayal.

2. Spaghetti – Italy vs China

Ah, pasta. e very soul of Italian cuisine. No true Italian would dare suggest that spaghetti - a dish that brings a tear to the eye of every nonna - could have come from anywhere but Italy. Yet, some claim that the Italian explorer Marco Polo brought spaghetti back to Venice from China. Imagine the horror on every Italian face at this suggestion! According to this theory, Polo saw noodles made of wheat or rice our during his travels and thought, “Hmm, this could work in Italy,” thus introducing the humble noodle to the boot-shaped nation. But Italians are having none of it. Spaghetti, as they see it, was already being made in ancient Rome. So, did the Chinese invent noodles rst? Perhaps. But spaghetti? at’s strictly Italian.

3. Kimchi – Korea vs Japan

Ah, kimchi, the spicy, fermented pride of Korea. It’s got garlic, chili, and fermented cabbage—what’s not to love? But in 1996, a culinary feud erupted when Japan started pushing for their version of kimchi to be internationally recognised as kimuchi. is, of course, sparked outrage in South Korea, which felt that their fermented vegetable dish was being hijacked. In a bid to assert their kimchi supremacy, South Korea launched a full-on “gastrodiplomacy” campaign, trying to get the World Health Organization to o cially endorse Korean kimchi. e kimchi spat got so heated that it even went to the United Nations. Now, whenever I think of kimchi, I imagine a war room lled with hot peppers and cabbage leaves—both countries clinging to their respective pots with ery determination.

4. Hummus – Lebanon vs Israel

e Middle East, with its rich tapestry of cultures and culinary traditions, is home to one of the most heated food-origin disputes over a simple dish: hummus. Made from mashed chickpeas, tahini, olive oil, and a sprinkle of garlic, hummus is a beloved dish across the region. But ask any Lebanese or Israeli, and they’ll tell you that the humble dip belongs to them. In 2008, Lebanon went so far as to le a lawsuit against Israel, claiming that hummus was a stolen treasure and that Israel was infringing on Lebanese food rights. is con ict escalated further, with Lebanon pushing the European Union to recognise hummus as a uniquely Lebanese dish. It’s a savoury, garlicky battle for the ages - one that’s far from being settled amid the ongoing tensions, but certainly avourful.

5. “Food Wars” - Malaysia vs Singapore

Now, let’s dive closer to home into the delightful, o en spicy, food ghts that spark more than just ery appetites - between Malaysia and Singapore. e rivalry over which country owns the best local dishes has become as iconic as the dishes themselves. Both sides battle it out like gladiators (BTW: e Ridley Scott’s movie Gladiator II is showing now) wielding chopsticks and spoons, ghting tooth and nail (or should I say, tooth and sambal) over everything from nasi lemak to chili crab. It’s not just about food, folks; it’s about national pride served on a plate.

I still remember back in 2009, when the “Great Food War” was in full swing, and former Malaysian tourism minister Datuk Seri Dr. Ng Yen Yen declared that Malaysia could no longer stand by and let other countries (yes, mainly Singapore) “hijack” its food. She called for a bold claim on Malaysia’s national dishes like chili crab, Hainanese chicken rice, laksa and of course, nasi lemak. Cue the dramatic music.

Nasi Lemak: e Coconut Saga

is beloved dish, o en touted as Malaysia’s national food, has been a source of ongoing culinary tension. For many Malaysians, nasi lemak is the essence of their nation: fragrant coconut rice, crispy anchovies, spicy sambal, and a hard-boiled egg. But in 2017, when McDonald’s launched a nasi lemak burger in Singapore, Malaysians went into full “battle mode.” For them, this was a national the ! But hold on. Is nasi lemak truly a Malaysian original? It’s a complicated web. e dish shares a resemblance to Indonesia’s nasi uduk, and food historians suggest that the dish’s roots go deep into the Malay Archipelago’s history, likely originating on the west coast of the Malay Peninsula. So, if the dish can be traced back to the SEA region, should it belong to one country or both? We might as well throw a sambal-scented towel into the ring and call it a regional treasure!

Bak Kut Teh: Meat or Tea?

When it comes to bak kut teh, it’s not just about pork bones and herbal broth –it’s about bragging rights. While Malaysia boasts the Hokkien-style bak kut teh, rich with dark soy sauce and a hearty herbal concoction, Singapore claims the lighter, peppery Teochew-style. But hold your chopsticks, the plot thickens. Subsequent adaptations and innovations, we now have dry Bak Kut Teh, Chik Kut Teh using chicken meat and in Sabah, we can enjoy Seafood Bak Kut Teh, yummy to the core)

In Klang, Malaysia, they swear by their bak kut teh, claiming it was named a er a local vendor whose surname was “Teh.” (Note: Many Hokkien Chinese have surnames of Teh, Tee, Tay and like my surname, it was erroneously changed to Tek from Tee). But Singapore’s Chinatown also has its own bak kut teh heritage, with tea merchants supplying vendors since the 1920s. So, who’s the rightful owner? It’s a toss-up. Perhaps the only fair solution is to agree that bak kut teh belongs to both countries – and maybe, just maybe, a side of char kway teow can seal the deal. Opps… another dish thrown into the ring!

Chili Crab: Crabs in a Sauce of Pride.

Ah, chili crab – the dish that was invented in a shack but ended having both Malaysians and Singaporeans claiming to be the rst to add the chili. is ery, tangy seafood creation has divided families and friends over the years. I read that Singapore credits Cher Yam Tian, who allegedly invented the dish in the 1950s when her husband caught crabs and she decided to spice things up with chili and tomato sauce. A legend is born!

But wait – Malaysia’s Langkawi claims its own history with chili crab, asserting that the dish dates back to 1950s too, even earlier than Singapore’s origin story. Malaysian chef Keh Pooi Ling says her family restaurant created the sauce, and her family served chili crab long before the rest of the world caught on. So, who gets the crown? Perhaps both countries should consider sharing the recipe and agree to throw in a few extra crabs for good measure.

Cendol: A Sweet Battle of Origin.

Cendol, an icy sweet dessert of pandan jelly, red beans and coconut milk, laced with palm sugar. Cendol should be the dessert that unites Malaysia and Singapore – but instead, it’s another cause for culinary warfare.

Six years ago, CNN listed Singaporean cendol as one of the world’s 50 best desserts, prompting a urry of Malaysian netizens to cry foul. “Not in our backyard!” they exclaimed. But hold your ice cubes! Cendol isn’t just a Malaysian or Singaporean invention – it may well has its origin from Indonesia, speci cally Java, where it is known as ‘Dawet’. is palm sugar-based dessert has been around for centuries, rst mentioned in a Javanese manuscript from the 12th century.

Still, both Malaysia and Singapore have embraced the dessert, each adding their own local twist. So, should cendol be a South East Asian regional gem that we can all claim a piece of, or is it an Indonesian treasure that Malaysia and Singapore are lucky to share?

Palm Oil: Unsung Hero in Asian Food Delights

As the food wars simmer on between Malaysia and Singapore, one humble yet powerful ingredient stands as the unsung hero in countless dishes— - natural palm oil. Its high smoking point makes it the go-to choice for frying, perfect for crispy treats and robust avours in Asian delights like sambal, nasi lemak, and Indian curries. But palm oil’s appeal doesn’t stop at Malaysian cuisine. In Indian cooking, it’s o en blended with other oils to create rich, aromatic curries, while its versatility in other global dishes is equally notable. While some dishes, like delicate tempura, may call for lighter oils, experts agree that palm oil’s versatility ensures it plays a vital role across diverse cuisines when used appropriately. Whether it’s sambal in Malaysia, curries in India, or even innovative uses in fusion cooking, palm oil remains a trusted, sustainable ingredient.From enhancing everyday meals to elevating gourmet creations, palm oil’s adaptability shines.

Nutritionally, palm oil stands out as a powerhouse. Naturally trans-fat-free, non-GMO, and balanced with almost equal amounts of saturated and unsaturated fats, it’s a healthy addition to the kitchen. Rich in vitamin E tocotrienols, a potent antioxidant, palm oil supports protection against chronic diseases and even slows the aging process—a bonus for health-conscious food lovers.

Food Fights and Flavour Bridges

Why does the origin of food matter? For some, it’s about preserving national identity and heritage - keeping traditions alive, one bite at a time. For others, it’s a way to attract tourists, or perhaps the work of opportunists in the tourism and restaurant F&B outlets, eager to stake their claim on a beloved dish for marketing purposes using their respective national badge. But no matter the reason, one thing is undeniable: food has an incredible way of bringing people together.

ese food feuds might seem trivial, but they highlight just how deeply food is tied to national identity and pride. It’s not just about what’s on the plate - it’s the history, the culture, and the stories each dish carries. From Sweden’s meatball mix-up to the ever-smouldering hummus battle, one thing is clear: food is never just food - it’s a passport to a country’s soul. And sometimes, the wars over who made it rst are just as delicious as the dishes themselves.

Although there is the saying that goes, “seeing is believing,” and when it comes to food, maybe we should say “eating is believing.” So, take a bite in Malaysia, take a bite in Singapore, and let your taste buds be the nal judge. Is it nasi lemak, or is it nasi le-‘meh’? Is it chili crab, or are you just crabby over who gets the bragging rights? A er all, there’s no better way to settle this than with a classic, old-fashioned food ght - spicy, saucy and full of avour!

And when the dust settles, one thing is crystal clear: beyond the playful jabs and ery exchanges, the bond between Malaysia and Singapore remains as strong as ever – and must be further forti ed. What better way to unite than a little friendly rivalry over food? A er all, these culinary battles are the tastiest form of diplomacy, and they have built a bridge of friendship that makes both countries feel “shiok” – rather than “shiok-sendiri”.

Let’s agree on one thing: food is a bridge, not a battleground. Let’s eat, share and celebrate the rich, delicious tapestry of the world’s cuisine - whether it’s Turkish meatballs, Italian spaghetti, or, yes, Singaporean and Malaysian delights. Because in the end, it’s the avour that matters most. And, let's not forget, many out there still go hungry. So, let’s also be mindful of the privilege of having food on our plates, and do what we can to help those who don’t.

As the food-origin debates may rage on, let’s not forget that behind every dish that delights our taste buds is an ingredient that enhances both avour and nutrition. Palm oil –Malaysian secret culinary weapon - is perfect for uniting us in the joy of great food, no matter where it originates!

Bon appétit -or, as we always say in Malaysia, Jemput Makan!

Malaysia’s biofuel industry holds signi cant importance for reducing greenhouse gas emissions and bolstering the domestic palm oil sector. With 17 biodiesel re neries strategically located nationwide and a combined production capacity of 2.7 billion litres, the biofuel industry has cemented itself as a major player in both local consumption and global exports. ese exports are primarily directed to prominent markets such as the European Union, Singapore, and China. However, while biodiesel exports remain a vital part of the industry, Malaysia’s policy framework has placed greater emphasis on domestic biofuel usage, particularly for the transportation sector. e development of this sector has been guided by several key policies and mandates, each contributing to Malaysia’s progress in utilising biodiesel as a viable and sustainable energy source. e challenges faced by the industry, including infrastructure limitations, high production costs, and regulatory hurdles, have been met with strategic adjustments in policy, alongside collaborative e orts from government agencies, private companies, and the Malaysian Palm Oil Board (MPOB).

e Role of Policy in Driving Biofuel Development

e National Biofuel Policy (NBP) was introduced in 2006 with the dual objectives of reducing Malaysia’s dependency on fossil fuels and promoting downstream palm oil products, including biodiesel. Additionally, the policy aligns with Malaysia’s commitment to achieving a 45% reduction in greenhouse gas emissions intensity by 2030, as outlined in the Paris Agreement.

e policy serves as the foundation for Malaysia’s biofuel mandates, which include a series of regulations aimed at ensuring the sustainability and competitiveness of the industry. ese regulations are legislated under the Biofuel Industry Act 2007, providing a framework for biodiesel blending, licensing, and enforcement mechanisms. Notable regulatory provisions include:

Malaysian Biofuel Industry (Licensing) regulations 2008 PU(A) 404: ese stipulate the requirements for licensing biodiesel production facilities and ensuring adherence to quality and environmental standards.

Malaysian Biofuel Industry (Blending Percentage and Mandatory Use) Regulations 2019-PU(A) 129: ese regulations mandate the blending of biodiesel into petroleum-based fuels at speci c percentages, such as B10 for the transportation sector and B7 for the industrial sector.

Malaysian Biofuel Industry (Compounding of O ences) Regulations 2021-PU(A) 13: is provision establishes penalties for non-compliance with blending and quality regulations.

e enforcement of these policies is overseen by the Malaysian Palm Oil Board (MPOB), which works closely with the Ministry of Plantation and Commodities (MPC). is collaborative e ort ensures that biofuel mandates are e ectively implemented and monitored across all relevant sectors.

Malaysia: Current Buzz

Malaysia’s biodiesel programme has been rolled out in phases over the years.

e B5 mandate was introduced as a key component of the NBP in 2006. Implementation began regionally in 2011 and achieved nationwide coverage by 2014. is mandate created signi cant demand for palm oil-derived biodiesel and stabilising prices in the process.

e B7 mandate marked the next step, with an initial rollout in 2015. By 2017, it was fully implemented across Peninsular Malaysia and extended to Borneo in 2019, making it nationwide. e mandate positively impacted the palm oil industry by stabilising palm prices, increasing demand by 700–800 thousand metric tons (TMT) annually, and reducing greenhouse gas (GHG) emissions by 2 million tons per year.

Announced in 2018, the B10 mandate aimed to further Malaysia’s renewable energy goals. It was implemented in Peninsular Malaysia in February 2019 and extended nationwide by September 2019. e government is also exploring the possibility of expanding the mandate to the industrial sector.

e B20 mandate, announced in 2020, faced delays due to the COVID-19 pandemic, high palm oil prices, and inadequate blending infrastructure. As a result, it has yet to achieve nationwide coverage and remains limited to select areas, including Sarawak, Langkawi, and Labuan.

Initially proposed for implementation by 2025, the B30 mandate has been postponed. Under the second phase of the National Energy Transition Roadmap (NETR) announced in August 2023, the target date has been revised to 2030.

Financial Supports for Biodiesel Production

e Government of Malaysia (GoM) ensures the nancial viability of its biofuel program through an Automatic Pricing Mechanism (APM) to determine biodiesel prices. However, the formula for this calculation remains unpublished. While credible studies have analysed the B7 blend pricing mechanism, it is unclear if the formula has been revised for higher blends such as B10 and beyond.

To support the palm oil industry's development, the GoM imposes the CESS levy, authorised under the Malaysian Palm Oil Board Act 1998 (Act 582). O en referred to as the "windfall levy," it has increased nominally from RM11 ($2.47) per ton of Crude Palm Oil (CPO) in 2000 to RM16 ($3.60) in 2021. Of the levy collected, 80% is allocated to research, regulatory, and promotional activities, 15% to replanting and biodiesel subsidies, and 5% to environmental initiatives. In 2023, the CESS levy raised an estimated RM331 million ($76 million).

To prepare for a future B30 biodiesel mandate, ve petroleum companies—Petronas, Shell, Petron Malaysia Re ning, Chevron Malaysia, and Boustead Petroleum Marketing—committed to upgrading 35 petroleum blending facilities nationwide starting in 2020. By 2023, 15 of these facilities had been upgraded.

Challenges and Opportunities in the Energy Transition

e National Energy Transition Roadmap (NETR), launched in 2023, outlines Malaysia’s strategy for achieving net-zero emissions by 2050. Within this context, the biodiesel industry is expected to play a pivotal role in reducing reliance on fossil fuels and supporting the transition to renewable energy sources.

One key challenge facing the industry is the underutilisation of alternative feedstocks, such as used cooking oil (UCO), for biodiesel production. While UCO is a viable and sustainable feedstock, it is o en exported to markets o ering higher prices, such as the European Union. e lack of domestic incentives for UCO collection and utilisation further exacerbates this issue.

Encouragingly, petroleum companies such as Petronas have launched pilot programmes for UCO collection as part of their broader strategy to produce Sustainable Aviation Fuel (SAF) by 2028. is development aligns with Malaysia’s ambition to diversify its biofuel feedstocks and tap into the growing global market for SAF.

Malaysia: Current Buzz

Global Market Dynamics and Export Strategies

Malaysia’s biodiesel exports are projected to reach 810 million litres in 2024, an increase of 8 million litres compared to 2023. However, the industry faces growing challenges in its export markets, particularly in the European Union, where the Renewable Energy Directive (REDII) has imposed stricter sustainability criteria on biofuels derived from palm oil.

To mitigate the impact of these regulatory barriers, Malaysia is focusing on strengthening domestic consumption and exploring new export markets. Additionally, the government has proposed higher export taxes on crude palm oil (CPO) in the 2025 Malaysian Budget, aimed at incentivising value-added production, including biodiesel. is measure is expected to enhance Malaysia’s position in the global biofuel market while ensuring a stable domestic supply of CPO for biodiesel production.

Malaysia’s biofuel industry has made remarkable strides in achieving sustainability and energy security, driven by robust policies and mandates under the National Biofuel Policy. While challenges such as infrastructure limitations and high production costs persist, initiatives like the NETR and collaborations with petroleum companies provide a promising pathway for future growth. By addressing these challenges and leveraging its strengths, Malaysia is well-positioned to become a global leader in sustainable biofuel production.

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KEY PALM OIL MID & DOWNSTREAM STAKEHOLDERS:

MINISTRY, ITS AGENCIES AND RELATED ASSOCIATIONS

MALAYSIA

Ministry of Plantation and Commodities (KPK) www.kpk.gov.my

Malaysian Palm Oil Green Conservation Foundation (MPOGCF) www.mpogcf.org

Malaysian Oleochemical Manufaturers' Group (MOMG) www.momg.org.my

Badan Pengelola Dana Perkebunan Kelapa Sawit (BPDPKS) Indonesian Palm Oil Plantation Fund Management Agency https://www.bpdp.or.id/

Asosiasi Produsen Oleochemical Indonesia (APOLIN) Indonesian Oleochemical Producers Association https://apolin.org/

Malaysian Palm Oil Board (MPOB) www.mpob.org.my

Malaysian Palm Oil Association (MPOA) www.mpoa.org.my

Malaysian Biodiesel Association (MBA) www.mybiodiesel.org.my

Malaysian Palm Oil Council (MPOC) www.mpoc.org.my

Malaysian Sustainable Palm Oil (MSPO) www.mspo.org.my

The Federation of Palm Oil Millers Association of Malaysia (POMA)

Malayan Edible Oil Manufacturers' Association (MEOMA) meoma.org.my/v1

INDONESIA

Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI) Indonesian Palm Oil Association https://gapki.id/en/

Asosiasi Produsen Biofuel Indonesia (APROBI) Indonesian Biofuel Producers Association https://www.aprobi.or.id/

Indonesian Oil Palm Research Institute (IOPRI) Pusat Penelitian Kelapa Sawit (PPKS) https://iopri.co.id/

Gabungan Industri Minyak Nabati Indonesia (GIMNI) Indonesian Vegetable Oil Industry Association https://gimni.org/

Palm Oil Re ners Association of Malaysia www.poram.org.my

Malaysian Oil Scientists' and Technologists' Association (MOSTA) mosta.org.my

Palm Oil Agribusiness Strategic Policy Institute (PASPI) https://palmoilina.asia/

Indonesian Biomass Energy Masyarakat Energi Biomassa Indonesia (MEBI) https://mebi.or.id/

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