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e Sarawak government is reviewing existing legal provisions to unlock the economic potential of palm oil waste by converting it into green energy and high-value downstream products.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg announced that Minister for Food Industry, Commodity and Regional Development, Datuk Seri Dr Stephen Rundi Utom, has been tasked to work with the State Attorney-General on possible legal amendments.
“Our goal is to treat palm oil waste not as a burden but as a valuable resource that can generate income through biofuel and green energy,” Abang Johari said a er o ciating the launch of SALCRA’s new kernel crushing plant in Lubok Antu.
Sarawak currently operates 85 palm oil mills. e Premier proposed centralising waste collection from these mills to feed a dedicated biofuel processing facility.
Sarawak Reviews Laws to Turn Palm
Oil Waste into Green Energy and Revenue
“ is initiative could position Sarawak as a major producer of sustainable aviation fuel (SAF) in the region, boosting our revenue and advancing our green economy agenda,” he added.
Indonesia Attracts Nearly US$1 Billion in Q1 2025 Palm Oil
Downstream Investments
Indonesia, the world’s largest palm oil producer, reported that it secured Rp15.26 trillion (approximately US$916 million) in realised investments for palm oil processing in the rst quarter of 2025. e investments are part of the country’s broader push to develop downstream industries and add value to its top commodity exports.
Investment Minister Rosan Roeslani announced the gures during a press conference, stating that Indonesia remains committed to expanding its re ning and manufacturing capabilities across resource sectors. e country continues to welcome both foreign and domestic investors to support its strategy of moving up the value chain.
While the palm oil sector saw strong interest, it still trails Indonesia’s agship downstream initiative in nickel processing, which recorded Rp47.82 trillion (US$2.9 billion) in investments over the same period. Nonetheless, e orts are underway to replicate the success of nickel in other commodities, including palm oil, to diversify and strengthen the nation’s industrial base.
Joseph Tek in his column for the Borneo Post, argues that health isn't about chasing dietary trends or demonising foods - it’s about balance. He re ects on Ancel Keys’ in uential yet awed 1950s Seven Countries Study, which linked saturated fat to heart disease and shaped decades of dietary policy. However, Keys ignored outliers like France, where high saturated fat intake coexists with low heart disease - a phenomenon dubbed the “French Paradox.” Similarly, Israel’s “Mediterranean” diet hasn’t prevented high heart disease rates, creating the “Israeli Paradox.”
ese paradoxes suggest the real culprits may be ultra-processed foods (UPFs), stress and lifestyle -not saturated fats alone. France’s fresh, minimally processed cuisine contrasts with Israel’s higher UPF intake, highlighting food quality as key.
Food Paradoxes: When oils battle for nutrition and health
(30 March 2025)
Today’s shi ing diet narratives - vilifying butter, praising seed oils, then reversing course—have le many confused. While seed oils aren’t inherently harmful, overconsumption via UPFs and poor omega-6 to omega-3 ratios contribute to chronic in ammation. Red palm oil emerges as a balanced, nutrient-rich, heat-stable option. Sustainably grown, it o ers better yields and fewer trans fats than seed oils.
e takeaway? Balance is vital. Prioritise fresh, whole foods, embrace oil diversity, and limit processed fare. Health isn’t about food fads - it’s about quality, moderation and lifestyle.
Malaysia, China ink deal to boost palm oil supply chain in western China
(25 May 2025)
Malaysia and China have signed a strategic pact to strengthen palm oil trade and green industry cooperation, focusing on western China.
e memorandum of understanding, between the Malaysian Palm Oil Board and New Land-Sea Corridor Operation Co Ltd, will enhance palm oil logistics and trade via the Qinzhou Port–Chongqing route, linking Malaysia to inland provinces like Sichuan, Guizhou, and Shaanxi.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said the agreement supports a more e cient and sustainable palm oil supply chain. Malaysia aims to leverage its Malaysian Sustainable Palm Oil (MSPO) certi cation to deepen collaboration with China in carbon labelling, biofuels, and green materials. Chan led Malaysia’s delegation at the China-Malaysia Industry Cooperation Dialogue, held during the 7th Western China International Fair for Investment and Trade. Over 40 Chinese rms from food processing, personal care, and oil re ning attended for targeted business discussions.
Malaysia is also partnering with Chongqing Jiaotong University to develop palm-based polyurethane acrylate for anticorrosive coatings, part of a broader push to expand palm-derived chemicals in industrial uses.
Other initiatives include promoting red palm oil, palm stearin, and palm-based ice cream powder, with joint R&D underway to integrate these into hotpot bases, snacks, and eco-friendly personal care products.
Malaysia’s footprint in China’s high-value palm oil market has been signi cantly strengthened by the work of the Palm Oil Research and Technical Service Institute of Malaysia (PORTSIM) in Shanghai.
Celebrating its 20th anniversary, PORTSIM was praised by Deputy Plantation and Commodities Minister Datuk Chan Foong Hin for driving science-based economic diplomacy and boosting Malaysia’s export value through research, development and commercialisation (R&D&C).
“In 2024 alone, R&D&C activities by PORTSIM contributed RM357.98 million in export earnings and reinforced Malaysian palm oil’s image as a premium, reliable input,” Chan said during the anniversary event in Shanghai.
PORTSIM Strengthens Malaysia’s Position in China’s High-Value Palm Oil Market
(19 May 2025)
Since its founding in 2005, PORTSIM has played a pivotal role in innovating palm-based products tailored to Chinese needs - ranging from food and oleochemicals to animal feed and cosmetics. Its collaborations with Chinese universities and industries have helped expand palm oil use in key segments like fast food, bakery, soaps and pet food.
Malaysia exported RM10.6 billion worth of palm oil products to China in 2024, over half of its total agri-commodity exports to the country. PORTSIM's work continues to position Malaysian palm oil as a trusted, high-value ingredient in one of the world’s largest markets.
Malaysia Charts Future of Palm Oil at POC 2025
(8 April 2025)
Over 2,000 participants from 50 countries gathered at the 36th Palm & Lauric Oils Price Outlook Conference & Exhibition (POC 2025) to assess the edible oils market. Hosted by Bursa Malaysia Derivatives, the event spotlighted trade trends, price volatility, and sustainability challenges.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani announced a strong 2024 for Malaysia’s palm oil sector, with crude palm oil (CPO) prices up 9.7% and exports rising 12% to US$26 billion. CPO output reached 19.3 million tonnes, the highest in six years. However, replanting fell to 114,000ha—far below the 285,000ha needed annually—raising long-term productivity concerns.
Johari welcomed the EU’s delay of the deforestation law to end-2025 but rea rmed Malaysia’s sustainability commitment through MSPO 2.0 and nationwide support for smallholders. Technological innovations, including AI in mills and renewable energy integration, were highlighted as key productivity drivers.
e conference also addressed Malaysia’s lagging biodiesel mandate—B10 for transport versus Indonesia’s B40. Malaysian Biodiesel Association president UR Unnithan warned that without policy reform, Malaysia risks falling behind. While Malaysia exports 85–90% of its palm oil, Indonesia’s large domestic market sustains its biodiesel push. Unnithan stressed leveraging blockchain tech and data tools to support smallholders and comply with new EU rules. He and FGV Holdings CEO Fakhrunniam Othman noted biodiesel’s potential to strengthen energy security, stabilise palm oil prices, and reduce fuel imports.
e industry urged bold action to remain competitive amid shi ing global biofuel trends. “ e future hinges on our ability to adapt,” said Unnithan. “We must seize opportunities in sustainability, technology, and biofuel adoption to secure Malaysia’s leadership in the palm oil sector.”
e Indonesian government has outlined a four-stage strategy to accelerate palm oil downstreaming, aiming to add value to its top commodity and enhance sustainable growth, according to National Development Planning Minister Rachmat Pambudy.
e stages include: (1) strengthening the industrialization ecosystem, (2) boosting production capacity for domestic needs, (3) enhancing global competitiveness, and (4) achieving net export status.
ese steps are part of the 2025–2045 National Long-Term Development Plan.
Speaking at an IPB University seminar, Rachmat said downstreaming is crucial as Indonesia produces 68.7% of the world’s crude palm oil (CPO). Demand is also expected to rise with the government’s B35 biofuel mandate and free nutritious meals program.
Indonesia Unveils Four-Stage Plan for Palm Oil Downstreaming
(11 March 2025)
Rachmat emphasized that palm oil could contribute to energy security through biofuel and biomass, while supporting food self-su ciency via intercropping and cattle-oil palm integration (SISKA).
He highlighted palm oil’s role in advancing a circular economy and low-carbon development, calling for sustainable practices, peatland conservation, and regenerative agriculture.
“E ective palm oil management can support environmental goals and raise farmer incomes,” he said.
Malaysia Deepens Palm Oil Ties with Kenya for Regional Growth
(9 May 2025)
Malaysia aims to strengthen palm oil trade with Kenya, positioning the East African nation as a gateway to wider regional markets, according to the Malaysian Palm Oil Council (MPOC).
MPOC CEO Belvinder Sron said Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani’s recent visit to Kenya rea rms Malaysia’s commitment to delivering a stable supply of high-quality, sustainable palm oil to the region.
"Kenya is more than just a market — it o ers long-term potential with its rising demand for edible oils, growing manufacturing base, and improving logistics," Belvinder noted.
Palm oil exports from Malaysia to Kenya surged from 520,758 tonnes in 2020 to 1.26 million tonnes in 2024, reinforcing Malaysia’s role as a reliable supplier. During his visit, Johari met Kenyan o cials and industry leaders, chaired a roundtable with key players in the oils and fats sector, and discussed ways to improve trade, overcome access barriers, and position Kenya as a regional distribution hub.
MPOC continues to expand its African footprint through trade missions and market engagement, aligning with its strategy to diversify exports beyond traditional markets in response to Africa’s growing economic potential.
CPTPP: First Malaysian Palm Oil Shipment Enters UK
Tari -Free
Malaysia’s rst consignment of palm oil under the Comprehensive and Progressive Agreement for Trans-Paci c Partnership (CPTPP) entered the Port of Liverpool on 5 April 2025. e shipment of 8,000 tonnes from Sabah arrived tari -free, marking a milestone in Malaysia-UK trade relations.
Malaysian High Commissioner to the UK, Datuk Zakri Jaafar, highlighted that CPTPP enables both countries to expand markets and strengthen bilateral trade. e UK became the rst European nation to join CPTPP in December 2024, while Malaysia has been a member since November 2022.
At a dinner hosted for Deputy Prime Minister Datuk Seri Fadillah Yusof, key industry and government leaders emphasized the growing cooperation, including Malaysia’s advancements in renewable energy. Malaysia’s TNB subsidiary recently launched two high-capacity solar farms in the UK with a combined capacity of 102 MW, showcasing Malaysia’s expertise in sustainable energy.
Malaysia remains the UK’s fourth-largest trading partner in Southeast Asia, with total trade reaching RM15.3 billion in 2024. Malaysian investments in the UK hit £19 billion (RM110.63 billion) that same year, re ecting strong and growing economic ties.
Malaysia Aims for Global Leadership in Sustainable Palm Oil
(28 May 2025)
(26 April 2025)
Malaysia is positioning itself as a global leader in sustainable agro-commodities, especially palm oil, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani at the 12th Singapore Dialogue on Sustainable World Resources.
He outlined the sector’s shi to a circular economy, where every part of the oil palm is repurposed—from biodiesel and aviation fuel to biomass and biogas. “We're moving beyond linear growth to a regenerative model that supports resilience, energy security, and climate action,” Johari said. Previously discarded materials like empty fruit bunches and palm oil mill e uent are now used in renewable energy and downstream products. He urged all mills to adopt renewable systems within a decade.
Addressing the EU’s classi cation of Malaysia as a “standard risk” country under the Deforestation Regulation, Johari criticised the use of outdated FAO data. He rea rmed Malaysia’s no-deforestation policy and its
Malaysian Sustainable Palm Oil certi cation standard. Johari stressed Malaysia’s global commitments—net-zero emissions by 2050, methane cuts, and over 50% forest cover—while championing fair, science-based trade rules as Chair of CPOPC and Co-Chair of the FACT Dialogue. “Palm oil is a strategic asset,” he said, “the most land-e cient edible oil. Replacing it would worsen global land use and environmental impact.”
Starting July 1, Malaysia’s oleochemical industry is expected to face higher input costs as palm kernel oil (PKO) and related derivatives, previously exempt will now be subject to a 5% sales and service tax (SST). According to CIMB Securities, the revised tax applies to re ned, bleached and deodorised (RBD) PKO and palm kernel shell, following their reclassi cation under an expanded SST framework that a ects 4,800 Harmonised System Codes.
e move raises concerns over cost competitiveness, as PKO is a key feedstock in oleochemical production. CIMB warns that the added tax burden could erode Malaysia’s edge in the global oleochemical market, though some players may o set the impact by passing the additional costs on to buyers. It remains uncertain whether industry players will lobby for exemptions. While rising international prices may help cushion the blow, Malaysia’s downstream sector must now navigate both rising raw material costs and shi ing global trade dynamics.
US Raises Biofuel Mandates for 2026–2027, Boosting Edible Oil Demand
(14 June 2025)
On June 13, the Trump administration proposed higher U.S. biofuel blending mandates for 2026 and On June 13, the Trump administration proposed higher biofuel blending mandates for 2026 and 2027, setting targets at 24.02 and 24.46 billion gallons, respectively up from 22.33 billion gallons in 2025. is move, led by the Environmental Protection Agency (EPA), is expected to li demand for edible oils used in biodiesel production, providing support to crude palm oil (CPO) prices. Under the Renewable Fuel Standard (RFS), re ners must blend biofuels or purchase compliance credits known as Renewable Identi cation Numbers (RINs). For 2026, the EPA aims for 7.12 billion biomass-based diesel RINs, equivalent to 5.61 billion gallons of biodiesel, which exceeds industry expectations. However, RIN yields have been revised down to 1.27 for 2026 and 1.28 for 2027, from 1.6 previously, meaning more physical feedstock is required per unit of credit.
CIMB Securities noted this proposal could drive stronger feedstock demand, higher prices, and improved downstream margins. With U.S. biodiesel production at 16 million tonnes in 2024, meeting the 2026 target would require 19.2 million tonnes. e nal RFS ruling is expected by end-2025.
3rd T-POMI Technology & Talent Palm Oil Mill
Indonesia 2025
Holiday Inn Bandung Pasteur, West Java, Indonesia
8 - 10 July
17th National Seminar (NATSEM) 2025
Berjaya Waterfront Hotel, Johor Bahru, Johor, Malaysia
14 - 16 July
11th Indonesia International Palm Oil Machinery & Processing Technology Exhibition 2025 (INAPALM ASIA 2025)
Jakarta International Expo (JIEXPO), Kemayoran, Jakarta, Indonesia
29 - 31 July
Asia Palm Oil Thailand 2024 CO-OP Exhibition Centre, SuratthanI, Thailand
7 - 8 August
3rd Sawit Indonesia Expo (SIEXPO) 2025 Pekanbaru Convention & Exhibition Riau, Indonesia
7 - 9 August
MOSTA Oil Palm Best Practices Workshop
2025 EVENTS
8th Malaysia International Agriculture Technology Exhibition MITEC Kuala Lumpur, Malaysia
11 - 13 September
PALMEX Medan 2025
Santika Premiere Dyandra Hotel & Convention, Medan, Indonesia
7 - 9 October
21st Indonesian Palm Oil Conference (IPOC) and 2026 Price Outlook
Bali International Convention Centre (BICC), Bali, Nusa Dua, Indonesia
Early
November
MPOB International Palm Oil Congress and Exhibition (PIPOC) 2025
Kuala Lumpur Convention Centre, Kuala Lumpur, Malaysia
18 - 20 November
2nd Unlocking Revenue and Sustainability: Exploring Carbon Credit Opportunities in the Palm Oil Industry 2025 (Biomass Edition)Kuala
Palm Oil Rebranding: Shi ing the Narrative
By Joseph Tek Choon Yee
Picture this: golden olive groves stretching across Mediterranean hills, their ancient trees whispering tales of heritage and purity. Now picture oil palm –o en associated with deforestation, exploitation and corporate greed. e contrast is stark, and deeply unfair.
is perception isn’t due to oil palm’s lack of merit, but perhaps our failure to tell its powerful story. It’s time to recognise the true value of this remarkable tropical crop.
Imagine oil palm estates standing proudly beside olive groves as global icons of sustainability and community pride of agriculture.
Rebranding palm oil isn’t just desirable - it’s essential. We've talked about it long enough. Scienti c and environmental studies, as well as over a century of commercial cultivation, a rm its enduring value. It’s time to rebrand oil palm and its main products: palm oil and palm kernel oil.
e olive oil industry turned its product into a symbol of health and indulgence - "liquid gold" from the Mediterranean. Can palm oil do the same? I believe it can.
A brighter future for palm oil is within reach. But it demands mindset shi s, investments, collaboration, a compelling narrative, and the will to share it with the world. Let’s rede ne the story, strengthen our facts, and present palm oil as the true gem of the tropics it is - ready for its rightful place on the global stage.
Palm oil and palm kernel oil are more than commoditiesthey’re natural powerhouses. Highly nutritious, incredibly versatile and integral to countless products, they also stand as the world’s most e cient edible oil crops.
Palm oil sustains billions and has li ed millions out of poverty. Yet, its image remains tarnished - criticised for the misdeeds of a few. It’s like a whiteboard with scattered black dots - we xate on the blemishes, not the clean expanse.
By contrast, olive oil enjoys glowing narratives of purity, wellness and cultural pride. Yet both crops aim to produce edible oils sustainably and pro tably. e key di erence? e story we tell. While olive oil’s bene ts are celebrated, palm oil’s unmatched productivity, quality, impact on livelihoods and its vast potential for continued improvements are o en overlooked or misunderstood.
No industry is perfect, and imperfection drives improvement.
e palm oil sector is evolving. Good players deserve recognition, laggards must be urged forward, and wrongdoers held accountable. e focus must shi to the bigger picture: a future where palm oil shines as a model of sustainability, progress and community upli ment.
e world needs all edible oils - including palm oil. It's time to reshape and share palm oil’s good stories, counter the misinformation and build understanding and respect for an industry that nourishes humanity and drives global development.
Olive groves are more than farms - they are immersive experiences. rough their “olive-tourism”, visitors can explore their rich history, taste their products and connect with a culture deeply rooted in the land. is fusion of agriculture, heritage and tourism has created a lasting legacy across the Mediterranean.
Can oil palm estates o er something similar?
Imagine “palm-tourism” with palm homestays where guests wake to sweeping vistas of lush, orderly landscapes. ey learn about the journey from seed to oil, discover sustainable practices, and hear the stories. Picture guided walks through nearby conservation areas, conversations with growers and insight into the lives shaped by this industry.
Such experiences could reveal the human side of palm oiltransforming perceptions and showcasing a deeper truth: that palm oil is not just about production, but about people, ecosystems with shared and responsible stewardship of the land.
At IJM Plantations-then, we launched the “Walk with CEO” programme - an immersive weekend experience showcasing the social, environmental and economic dimensions of oil palm cultivation. Participants included NGOs, journalists, academics, diplomats and families. ey explored estates, mills, R&D centre, workers’ homes, schools and conservation initiatives –and we strengthened dialogues to learn from each other.
is initiative o ered rsthand insights into the industry’s full spectrum and real-world impact. Similar programmes elsewhere present opportunities for deeper engagement and broader understanding.
ese visits weren’t just educational – they built trust and opened meaningful dialogue. As guests witnessed sustainable practices rsthand and met the people behind palm oil, scepticism o en gave way to understanding and appreciation. We lived by the Malay saying, “Tak kenal, maka tak cinta” – “If you don’t know, you can’t love.” And we embraced the principle of “agreeing to disagree without being disagreeable,” keeping conversations civil and respectful amid di erences in perceptions and opinions.
e impact was never one-sided. For our sta , these encounters sharpened their storytelling, boosted their con dence, and deepened their pride in the work they do. To truly shi global perceptions, we must nurture a new generation of passionate oil palm “ambassadors”. In the end, authentic connections and honest, engaging conversations remain our most powerful tools – reshaping the narrative with truth, heart and conviction.
For years, planters have questioned - half-seriously, half in jest - why we still call it “crude palm oil” (CPO), while olive oil enjoys the cachet of terms like “virgin” and “extra virgin.”
e word “crude” suggests something raw, dirty, and un nished - not tting for an edible oil that’s naturally nutrient-rich and extracted with just heat and pressure. Worse, it echoes “crude petroleum,” reinforcing negative stereotypes.
Palm oil deserves better.
Unlike other major edible oils - soybean, canola, sun ower, peanut - extracted with chemical solvents like hexane, palm oil is truly natural. It requires no chemicals, only mechanical pressing. It’s rich in carotenoids, tocotrienols and antioxidants. Why then cling to a label that undervalues its purity?
It’s time to move beyond “crude.” While “virgin” may not yet be the right t, terms like Natural Palm Oil (NPO), Pure Palm Oil (PPO) or Fruit Palm Oil (FPO) may be better to re ect its clean and chemical-free extraction and wholesome character. ese names instantly set it apart from chemically processed oils, tapping into consumer demand for clean, natural and sustainable products.
ough red palm oil has gained traction in niche health markets, a broader rebranding is overdue. Repositioning palm oil as a premium, naturally extracted oil will reshape global perceptions and reclaim its rightful place among the world’s best.
Palm oil isn’t just extraordinary - it’s deliberately unre ned at origin, a choice that honours its purity. From mill to kitchen, it’s a tropical treasure ready to be celebrated - not for what it’s called today, but for what it truly is.
Rebranding palm oil must do more than polish its image - it should inspire a renewed commitment to excellence across the entire value chain. is isn’t just marketing; it’s a movement. It begins upstream with owners, planters, workers and communities who dedicate themselves to building a sustainable and resilient industry.
Palm oil’s ripple e ects in rural economies are profoundcreating jobs, supporting local enterprises and driving growth in regions with few alternatives. ese stories of transformation, environmental stewardship and social progress deserve the spotlight.
Palm-tourism can help tell this story. Estates rich in history, biodiversity and sustainability could become destinations where guests experience the beauty and harmony of oil palms within nature.
Downstream players - marketers, retailers, policymakers - must embrace this new narrative. ey must highlight palm oil’s health bene ts, environmental contributions, versatility and its vital role in global food security.
Annual reports from plantation companies show immense progress in best practices and sustainability. Yet these achievements o en seem technical and remote to the public. Carefully curated images and personal stories can bridge that gap - bringing to life the human e ort and passion behind palm
e oil palm is extraordinary - not only for its unmatched productivity, but for its resilience, ease of cultivation and power to drive global progress vis a vis other annual edible crops. E orts to exclude it from supply chains are misguided and ignore both scienti c evidence and socio-economic realities.
Today, palm oil makes up 36% of global vegetable oil production, and demand is only growing. Exclusionary policies threaten to destabilise food systems, disrupt millions of livelihood and weaken sustainability e orts, especially in developing nations.
For too long, the industry has been on the defensiveresponding to campaigns and regulations like ILUC, RED and EUDR. While these responses matter, it’s time to lead. We must tell the true story of oil palm’s environmental strengths, social value and economic importance - con dently and consistently –with room for further improvements. “Rome was nt built overnight”.
We need to make these stories clear and accessible, especially in an era focused on sustainability, climate action and achieving the United Nations’ SDGs.
Perhaps the question isn’t whether palm oil should be rebranded - it’s whether we have the courage and will to lead that transformation. Will we take charge of the narrative or continue
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From Certi cation to Shelf: Palm Oil’s
Sustainability Potential in Japan
In 2024, Japan imported palm oil worth approximately USD 673M, making it the country's 186th most imported product out of 1,215, according to OEC World. e bulk of these imports came from Malaysia (USD 571M) and Indonesia (USD 101M), with smaller volumes from Colombia (USD 0.82M), Singapore (USD 0.44M), and Mexico (USD 0.05M). (1 USD = ¥147)
Tokyo (Photo: Jackyenjoyphotography/Getty Images)
e Japan palm oil market size reached USD 3.38B in 2024. IMARC Group expects the market to reach USD 4.81B by 2033, at a growth rate (CAGR) of 4.00% from 2025 to 2033.
Key Market Driver
Sustainability Shi
Japan’s palm oil market is undergoing a quiet transformation. Driven by sustainability concerns and ethical consumerism, Japanese companies are shi ing toward certi ed sustainable palm oil (CSPO). Certi cations like RSPO and MSPO are increasingly adopted, with brands streamlining their supply chains to enhance traceability.
Policy Support – Strategy MIDORI
e Japanese government has also stepped in, integrating palm oil into its Sustainable Food Systems Strategy, also known as Strategy MIDORI, which encourages importers and manufacturers to source certi ed sustainable raw materials, including palm oil by 2030.
Sector Applications: Where Palm Oil Power Japan’s Industries
Industrial Use
Palm oil is used as palm olein in hygiene products, pharmaceuticals, and lubricants, and palm stearin oil and palm kernel shells (PKS) serve as bioenergy feedstock in power generation.
However, palm stearin usage has declined due to price surge since MY 2020/21, rendering the Japan’s feed-in tari (FIT) of 24 yen/kWh unpro table unless prices fall below ¥90,000/MT.
PKS usage remains steady, and since 2024, the Ministry of Economy, Trade and Industry (METI) mandates stricter third-party environmental certi cation for PKS under its Feed-in Tari (FIT) scheme.
FAS/Tokyo forecasts that palm oil industrial usage will decrease to 90,000 MT in the next two years.
Feed Use
As of March 2025, still relies on limited used cooking oil (UCO) for biodiesel or sustainable aviation fuel (SAF) production. Still, progress is underway. Cosmo Energy Holdings completed Japan’s rst SAF production facility in Sakai, Osaka, targeting 30 million litres of hydrotreated esters and fatty acids (HEFA) SAF annually from locally sourced UCO starting April 2025.
Japan produces about 500,000 MT of UCO annually. With most UCO already allocated, palm oil could substitute in non-fuel industrial applications.
Japan needs about 380,000 MT of fats and oils for compound feed production, but local UCO only ful ls 180,000 MT. To ll the gap, manufacturers need to procure around 200,000 MT of oils and animal fats, including around 5,000 MT of palm oil.
If palm oil prices remain high, cheaper alternatives like soybean oil are preferred. Some millers are substituting oil-rich corn with rice and wheat. Since 2021, UCO shortages have persisted. UCO Japan estimates that 0.37 MMT of UCO is discarded via sewage, though 0.19 MMT may be potentially recoverable.
Food Use
FAS/Tokyo expects that food use of palm oil will remain at 0.55 MMT in MY 2024/25 and drop to 0.54 MMT in MY 2025/26, if palm oil prices stay high.
Fried foods like tempura, tonkatsu, and karaage are staples of Japanese cuisine, driving demand for cooking oil across restaurants, street vendors, and households. e rise of pre-fried, ready-to-eat has also boosted palm oil usage in food processing. Palm stearin serves as a cost-e ective substitute for cocoa butter in snacks and confectionery.
However, since autumn 2024, rising prices have prompt shi s to alternatives like soybean oil and e ciency strategies like using oil ltration systems, long-life oils, and shrink ation strategies.
J-Beauty & Cosmetic
Japan's beauty and personal care market is embracing the concept of 'J-beauty,' focusing on traditional ingredients, ethical sourcing and holistic approaches to skincare. According to Statista, the market is projected to generate USD 49.40B in 2025, with a CAGR of 2.68% through 2030. Skincare giants like Shiseido, are proactively adopting NDPE-compliant palm oil derivatives as part of their ESG-driven product innovation strategies.
Malaysian exports of palm-based oleochemicals to Japan have risen notably. Key exports include glycerin, the most widely used ingredient in skincare; palm kernel oil fatty acid (PKOFA), stearic acid, and lauryl alcohol.
Outlook & Future Direction
Malaysia-Japan Trade Momentum
Malaysia is strengthening its position as a supplier of value-added and sustainable palm products, including specialty fats, tocotrienols, red palm oil, and palm-based medium-density breboard.
MSPO-certi ed products are gaining shelf presence in AEON Japan. A recent MoU between MSPO and Japan’s Global Alliance for Sustainable Supply Chain (ASSC) places MSPO at the centre of Japan’s procurement ecosystem, enhancing stability and market access. It follows a 2023 human rights impact assessment (HRIA) by Ajinomoto Co Inc and ASSC.
Opportunities Ahead: Enhancing Visibility
awareness through campaigns, education, industrial engagement and partnerships. in R&D to develop high-value derivatives or products, tailored to market trends. Invest high-quality, sustainable and ethical production through strict standard. Ensure
Due to consistently high palm oil prices, FAS/Tokyo forecasts palm oil imports to stay at 0.645 MMT in MY 2024/25, followed by a slight dip to 0.635 MMT in MY 2025/26.
sustainability, commitment to biodiversity and social responsibility via branding.
Prepared by: Zahidah Zahidi
Source: MPOC, MPOB
Oilseeds and Products Annual Report 2025, FAS/Tokyo, USDA
Hedging, Diversi cation and Downstream Growth in Malaysia’s Palm Oil Sector
High palm oil prices generally re ect strong global demand and bene t both smallholders and plantation companies. However, sharp and sudden increases can disrupt importers’ purchasing plans.
Recently, Indian re ners cancelled 65,000 metric tonnes of crude palm oil (CPO) orders for July to September delivery, amounting to 17.9% of Malaysia’s total palm oil exports. e cancellations highlight the risks of overreliance on a single major buyer, especially amid growing market volatility.
Hedging Strategy
Dr Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, said derivatives are a key tool for managing price risk. By using the Bursa Malaysia futures market, producers can lock in selling prices, reduce exposure to volatility, and improve nancial predictability. He noted that such instruments are not speculative, but essential for protecting margins and ensuring operational stability.
Diversifying the Export Base
Over-reliance on a few key markets poses a strategic vulnerability. To build resilience, Malaysia must diversify its palm oil exports and tap into underutilised destinations.
China (8.2%), the EU (7.7%), Kenya (7.5%), and Turkiye (5.4%) are considered accessible “low-hanging fruit” where Malaysia can deepen trade ties and expand its market footprint.
Expanding Downstream
Dr Afzanizam also urged greater investment in downstream activities such as oleochemicals, biodiesel, and other palm-based industrial products. ese sectors o er more stable demand and help stabilise earnings during upstream
Improving supply chain resilience requires collaboration among producers, re ners, and government agencies through shared digital platforms that provide real-time supply and demand data. is supports more e ective inventory and logistics planning, including optimised replanting timelines. Structured, data-driven replanting strategies can help regulate future supply and minimise price volatility.
Looking Ahead
e current situation is likely temporary, with prices expected to return to a more sustainable range, leading to a stabilisation in demand, according to Associate Professor Dr Amirul A f Muhamat of UiTM.
Government bodies including MPOB, MPOC, MITI, and the Ministry of Plantation and Commodities are actively pursuing new export opportunities. Countries such as Uzbekistan and several in the Middle East have shown strong interest in Malaysian palm oil.
With diversi ed markets, stronger downstream integration, and the right strategic tools, Malaysia’s palm oil sector is well-positioned to manage future disruptions and ensure long-term market resilience.
Edited by: Zahidah Zahidi
Adapted from: Palm oil players should hedge, diversify downstream, BERNAMA
A er my talk, I approached Tun Lim’s VVIP table. With a warm smile, he said, “Splendid, young man… good show. Palm oil has a future with you.” en, with a twinkle, he added, “I like the Michelle Yeoh idea. Do you know she’s my niece?”
at moment wasn’t just a milestone - it’s a treasured memory. His later speech combined pride in his niece with strong support for the industry, delivered with unmatched charisma.
Tun LKY’s journey from the small town of Tapah, Perak, to becoming one of Malaysia’s most respected national gures is a story of resilience, intellect and humility. Born in 1939, he faced a profound loss at the age of 12 with the passing of his mother, an event that ignited his lifelong passion for serving others,
At 19, he le for Northern Ireland to study medicine and returned in 1964 as a young doctor. Known for treating patients with kindness and o en without charging them, he earned the a ectionate Cantonese nickname "sor chai yee sang," meaning "silly doctor," for his sel ess ways.
In 1986, Tun Lim was appointed Minister of Primary Industries. He quickly immersed himself in the complex dynamics of Malaysia’s commodity sectors. Armed with a formidable elephant memory and a strategic mind, he made it a point to engage all stakeholders - from smallholders to industry giants. His leadership became especially crucial during the 1987 American Soybean Association (ASA) anti-palm oil campaign, where he stood rm in defense of Malaysia’s interests.
Under his stewardship, the oil palm industry expanded its global reach, with breakthrough access into major markets like China and India. He was not afraid to think outside the box, negotiating barter trade agreements to overcome nancial limitations and encouraging Malaysian companies to invest in Indonesia to secure regional growth.
Tun LKY passed away on 22 December 2012, leaving behind a legacy marked by visionary leadership, fearless advocacy and an unmistakable human touch. He was conferred national honours and remains fondly remembered not only for what he achieved, but how he did it - with heart.
Tun Lim’s charisma and earthy humour belied a sharp mind, evident during the de ning “War of Oils.” Early in his tenure as Minister, the ASA launched an aggressive anti-palm oil campaign, backing the Tropical Oils Labelling Bill in the U.S. ough the American market made up only 2% of exports, Tun saw the real danger: a trade war disguised as a health concern with global implications.
Drawing inspiration from Sun Tze’s Art of War and his Mahjong strategies, he launched a bold three-pronged counterattack: diplomatic outreach led by himself, scienti c rebuttal by Tan Sri Prof. Dr. Augustine Ong, and industry funding via the late Tan Sri Bek-Nielsen through the Palm Oil Promotion Fund. is combination of leadership, science and nancial repower was game-changing.
By 1987, Malaysia's counter-o ensive was in full swing. Ong’s team hosted U.S. seminars debunking ASA’s claims, and the Fund was rolled out. At a key 1989 convention in Tucson, Arizona, Tun hinted at his “Hydrogen Bomb” - exposing health risks of hydrogenated soybean oil and trans fats. e blu worked. ASA backed down by July 1989.
is was more than a trade win. It showcased Tun Lim’s masterclass in leadership, combining political will, science and funding. A timeless lesson in advocacy: with the right mix of brawn, brains, and budget, even the biggest battles can be won.
What’s this hydrogen ‘bomb’ in the oil world, and why does it make palm oil a standout? It refers to hydrogenation - a process turning liquid oils like soybean into solids, but with a nasty side e ect: trans fatty acids (TFAs). ese fats are cholesterol-wrecking culprits linked to heart disease.
Enter Tun Lim, a master at blending science and humour. With his trademark grin, he’d warn, “If ASA doesn’t back down, I’ll drop the hydrogen ‘bomb’ on them!” While ASA smeared palm oil for being high in saturated fats, Tun turned the tables with charm and wit. “I’m a real doctor, you know,” he’d joke. “Studied medicine at Queen’s in Belfast!”- always delivered with a twinkle and a punch.
Once at the MDEX (now POC) conference, Tun teased the crowd, “ASA? Are you here? Don’t underestimate me - I trained with the IRA!” Gasps followed. en came his grin: “And I’ve got a hydrogen ‘bomb’ up my sleeve!”
e bomb? Hard science: hydrogenated oils can spawn harmful TFAs. Palm oil, by contrast, needs no such process. It’s naturally stable, versatile and boasts built-in stearin and olein fractions, t for both solid and liquid uses.
While other oils scrambled to x TFA issues, palm oil stood proud. Tun’s message was clear: palm oil doesn’t need a gimmick - it’s already a star. “Why play small,” he’d say, “when you’re born to shine?”
Palm oil’s story is a hidden gem. Tun gave us the blueprint - now it’s our turn to unearth, share, sustain and improve on its brilliance for the world.
If Tun Lim was the mastermind behind palm oil’s battle with the ASA, then the late Tan Sri Bek Nielsen and Tan Sri Prof Augustine Ong were his trusty sidekicks, each with their own style.
Bek, the ery ‘Voice’ of palm oil, thrived on a good showdown. When ASA attacked at an international press event, Bek sprang up like a seasoned boxer: “I thought there was free speech here (in USA)!” he declared, rattling ASA and making sure palm oil had a loud defender. His knack for “agreeing to disagree without being disagreeable” kept things both sharp and civil.
Ong was the scienti c powerhouse. He didn’t just talk - he fought with facts. Advising the FDA and countering media spin, Ong’s research, especially his ‘sn-2 hypothesis’, helped shi the narrative. He proved palm oil wasn’t just healthy - it was exceptional.
Together, they were the perfect team: Bek with the re, Ong with the facts. With Tun Lim leading, they formed a formidable trio of wit, science and passion.
Tun Lim Keng Yaik’s speeches were legendary - insightful, ery, and o en... moist!. “Don’t mind my spit when I talk about palm oil - I’m just so passionate!” he’d declare, as front-row attendees braced for impact.
Known a ectionately as the “Umbrella Minister,” Tun’s animated delivery came with such gusto that journalists joked he o ered a “free facial” with every speech. Newcomers quickly learned: sit close, expect a splash.
But behind the humour and theatrics, was deep conviction. Tun didn’t mind the spit - only that his message landed. Palm oil wasn’t just business; it was his mission.
Tun Lim Keng Yaik had his own “Vision 2020” for palm oil: Vision 25:35 - 25% oil extraction rate (OER) and 35 tonnes of FFB per hectare by 2020. His message was blunt: “If you can’t compete in this business, then get out of it!.”
Today, we’re closer to a disappointing 20:17, far from his bold goal.
Tun wasn’t just about targets - he knew how to make them stick. He urged plant breeders to use the rich collected germplasm to boost fruit size, once joking with cupped hands that he wanted fruitlets “the size of Dolly Parton’s.”
Behind the humour was a serious message: RAISE THE BAR. It’s time we revisited his challenge, more frequently and intensity - with less theatrics, but the same urgency.
Tun LKY was a master of persuasion –someone who could make people listen, laugh, and think all at once. As my esteemed professor, Prof Dr. Zuriati Zakaria, once recalled, he even turned a serious palm oil mission to the Arab world into a masterclass in diplomacy and humour.
Facing a room of high-ranking o cials, Tun broke the ice with this line: “Would you rather buy halal Muslim palm oil or ka r soybean oil?” e stunned silence that followed quickly gave way to laughter – and then, re ection.
His humour wasn’t careless; it was calculated. With wit as his scalpel, Tun cut through cultural barriers and got people thinking. His jokes weren’t just entertaining – they disarmed, engaged and persuaded.
Tun had a rare gi : blending levity with strategy. He knew that laughter opens minds – and with open minds, real conversations could begin.
In 2004, when Mr MR Chandran approached Tun Lim for MPOA to become a Founding Member of the Roundtable on Sustainable Palm Oil (RSPO), Tun Lim raised an eyebrow and quipped, “So, you’re venturing to sleep with the NGOs, eh?”
Chandran, always up for a challenge, grinned and replied, “YB, we’ll be sharing the same bed, but chasing di erent dreams.” Without missing a beat, Tun Lim shot back, “Remember, it’s your neck!” In other words, if things went south, it was Chandran’s responsibility, not his!
at was Tun Lim’s style - straight to the point, with a touch of humour to keep things real. He wasn’t afraid to push you into the deep end, knowing his advice was always there, if you needed it.
Tun LKY had a gi for adding humour to even the driest discussions. During tense debates on estate productivity and wages, he’d lighten the mood with one of his cheeky classics:
“When the generator goes o and the estate goes dark, I wonder what the workers get up to. By day, they chase each other around the rubber trees - but what happens behind them? Funny how blackout nights o en lead to baby booms!”
With a trademark grin, he’d add, “In estates, the real power doesn’t come from the generators - it comes from the people.”
For Tun, these quips weren’t just jokesthey were reminders that plantations are about people, not just crops.
In a world increasingly divided, voices like his aren’t just missed — they’re needed more than ever.
To those who knew him, Tun Lim Keng Yaik remains unforgettable.
Sadly, many young in the industry today never witnessed his brilliance. His speeches were masterclasses - rich in wisdom, laced with humour and always inspiring. If recordings of his legendary addresses exist, sharing them would be a tting tribute.
As my former R&D director, Dr Ho Chai Yee related to me, “He stood head and shoulders above all ministers in the plantation industry. His intellect and passion helped him master palm oil and rubber with remarkable speed and depth”.
Tun Lim was more than a leader - he was a force of nature and the industry’s greatest champion. His humour brought people together and his vision still guides us. ough he is no longer with us, his legacy lives on.
Rest in peace, Tun. You are deeply missed.
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
