Palm Downstream Tribune Vol 7 No 7

Page 1


P A L M DOW NSTR EA M TRI BU

N E

From Lab to Life:

Forging a Malaysian R&D Ecosystem That Delivers Market

Balancing Demand and Policy: Opportunities for Malaysia in Sri Lanka’s Palm Oil Market

Next Chapter Media

Next Chapter Media

DISCLAIMER:

Next Chapter Media's editorial team strives to provide accurate and reliable information. However, we recommend that readers independently verify the claims and information presented in our publications. Next Chapter Media is not responsible for the accuracy of the content and encourages readers to use their own judgment when evaluating the information.

FRONT COVER

13-14 Innovation From Lab to Life: Forging a Malaysian R&D Ecosystem That Delivers

16 Nutrition Corner

Red Palm Oil: A Natural Protector of the Heart

17-20 Market Highlight

Balancing Demand and Policy: Opportunities for Malaysia in Sri Lanka’s Palm Oil Market

Muar Ban Lee Group Berhad 1-2, 22

MPOB International Palm Oil Congress (PIPOC) 2025 Palm Oil Industry Networking Dinner 2025

Malaysian Palm Oil Key Mid & Nutrition Satellite Symposium In Conjuction With PIPOC 2025

23-28

Nugget Getting Our Palms Straight: Sawit, Semantics and Spectres

Unlocking Revenue and Sustainability: Exploring Carbon Credit Opportunities in the Palm Oil Industry

e United States’ 19% export tari on Malaysian commodities, including palm oil, remains competitive compared to other Asean countries, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. He noted that Indonesia, the world’s top palm oil producer, faces the same rate, ensuring a “fair ght” between the two largest exporters. e revised tari , down from 25%, follows an executive order by US President Donald Trump on July 31, 2025, reportedly a er a phone discussion with Prime Minister Datuk Seri Anwar Ibrahim.

Speaking a er o ciating the Pasir Gudang Umno Division Delegates Conference, Johari said Malaysia’s commodity exports continue to perform well despite the tari .

“I don’t see any problems so far with the 19% tari . We can still compete e ectively in the global market,” he said.

Johari: US’ 19% Tari on Malaysian Palm Oil Still Competitive

(2 August 2025)

Nearly 90% of Malaysia’s Oil Palm Plantations MSPO-Certi ed

As of June 30, 5.03 million hectares, or 89.6% of Malaysia’s oil palm plantation area, are certi ed under the Malaysian Sustainable Palm Oil (MSPO) scheme, said Deputy Plantation and Commodities Minister Datuk Chan Fong Hin.

He said MSPO certi cation enforces strict standards, including compliance with the Employment Act 1955, ensuring no forced labour. Over 75% of the sector’s 280,000 workers are foreigners, mainly from Indonesia, followed by Bangladesh, India and Nepal.

Chan warned that heavy reliance on foreign labour carries risks of exploitation and potential trade restrictions from markets like the US.

Speaking at the launch of the ‘Know Your Rights, Do It Right’ Programme, he said such initiatives aim to address labour issues and protect Malaysia’s global market position by ensuring the palm oil sector operates ethically and sustainably.

Indonesia’s crude palm oil (CPO) and derivative exports surged 24.81% year-on-year in the rst half of 2025 to US$11.43bn, driven by improved market access to the EU, according to BPS data. Export volumes rose 2.69% to around 11M tonnes, while average prices climbed 22.21% to US$1,053.03/tonne from US$861.65 in 2024. In June alone, exports hit US$2.53bn, up 36.95% from May. Animal and vegetable fats and oils, including CPO, contributed US$15.74bn to Indonesia’s US$28.31bn non-oil and gas trade surplus.

e growth follows the EU’s agreement to remove tari s on up to 1M tonnes/year of Indonesian CPO under the forthcoming Comprehensive Economic Partnership Agreement (CEPA), expected to take e ect by end-2026. Exports beyond the quota may face a 3% tari , with palm kernel oil (PKO) quotas linked to prior-year shipments. e move marks a signi cant shi despite ongoing EU deforestation concerns.

Indonesia Sees Strong Palm Oil Export Growth in H1 2025

(12 August 2025)

US Biofuel Plan Would Reallocate Half or Less of Waived Blending Quotas

(11 September 2025)

e White House is considering a plan that would require large oil re neries to cover around half or less of the biofuel blending requirements recently waived for smaller facilities, according to three sources familiar with the matter.

e proposal submitted by the Environmental Protection Agency and now under review by the White House would require large re ners to cover a range of about 50% or less of the 1.1 billion gallons of the renewable fuel exempted last month for small plants, according to the sources.

e plan, if adopted, would likely frustrate biofuel producers and farm-state lawmakers who want full restoration of lost demand caused by small re nery exemptions. Palm oil, as a biodiesel feedstock, may see indirect e ects through shi s in the broader vegetable oil market.

Indonesia’s proposed B50 biodiesel mandate could raise domestic palm oil use by about three million tonnes, or 6.2% of its estimated 2024 crude palm oil (CPO) output of 48.2 million tonnes, CIMB Securities said. e additional demand could support CPO prices in 2026, o setting higher US import tari s on Indonesian (19%) and Malaysian (25%) palm oil from August 2025.

Indonesia’s B50 Mandate Could Li Palm Oil Demand by 3M Tonnes

(18 July 2025)

Eniya Listiani Dewi, director general of new and renewable energy at Indonesia's Ministry of Energy and Mineral Resources, said the government is evaluating the feasibility of raising the biodiesel blend to 50 per cent under the B50 programme. Five new biodiesel plants required—three under construction. Under current B40 targets for 2025, domestic palm oil consumption is set to rise by two million tonnes, with 15.62 million kilolitres (kls) allocated. Nearly half (7.55 million kls) is fully subsidised for public service sectors, while the rest is sold at market prices.

B50 could li annual biodiesel demand to around 19–19.7 million kls, requiring added capacity beyond the current 19.6 million kls. CIMB maintains its 2025 average CPO price forecast at RM4,200 per tonne, citing potential near-term support from higher Malaysian export tax and increased US import duties.

Sustainability Gone Sideways: When

Rats, Cobras, Palm Oil

(2 July 2025)

In this opinion piece, the author contends that a well-meaning RM2 bounty on rats in Kota Kinabalu risks triggering the “Cobra E ect” — when incentives encourage the very problem they aim to solve. History warns us: colonial Hanoi’s rat-tail payments spurred rat farming; Delhi’s cobra bounty led to snake breeding. Without safeguards, similar outcomes are possible. is dynamic extends beyond pests. Boycotts of palm oil, though well-intentioned, o en shi demand to crops like soybean or rapeseed, which require far more land and cause greater deforestation. In trying to “save” the planet, such actions can increase environmental harm.

In biofuels, policies rewarding used cooking oil (UCO) have driven demand so high that in some regions oil is changed early for pro t rather than hygiene. e result is market distortion and questionable “recycling” practices. e lesson is clear: incentives without guardrails risk back ring. Sustainable policies must be grounded in practical realities, shaped through engagement with industry and communities, and supported by transparent monitoring. Without this, even the best-intentioned plans may end up breeding more problems than they solve.

Indonesia’s new state-owned company, Agrinas Palma Nusantara, has received a major boost a er the government’s forestry task force transferred a massive 612,000 hectares of seized plantations to its control. e land was con scated from more than 230 companies found operating illegally in designated forest areas, Reuters reported. e government has not disclosed the names of the rms.

Formed in January under President Prabowo Subianto through the restructuring of an infrastructure services rm, Agrinas is rapidly emerging as a major force in the palm oil sector. Before the latest handover, it managed 221,000 hectares; with the new additions, its land bank now exceeds 833,000 hectares. e company currently produces about 6,000 tonnes of raw material daily.

Agrinas

Set to Become One of the World’s Largest Oil Palm Producers (10 July 25)

(10 July 2025)

Defense Minister Sjafri Sjamsoeddine, who leads the forestry task force, said over 2 million hectares of illegal plantations have been seized to date, with a target of 3 million hectares by August. e land will either be preserved for plantations or reforested. e development comes amid concerns that Indonesian palm oil exports to the United States may decline if a proposed 32% US tari is imposed.

Indonesia Secures EU Recognition for Sustainable Palm Oil in Trade

(4

August 2025)

Indonesia has secured European Union recognition of its crude palm oil (CPO) as sustainable under the Indonesia–EU Comprehensive Economic Partnership Agreement (IEU-CEPA). Trade Ministry o cial Djatmiko B. Witjaksono said the deal includes a rst-ever special protocol on CPO in any CEPA, acknowledging its sustainability for food and energy use.

Under the agreement, Indonesian CPO products will be exempt from EU import duties by 2027, with tari s on derivatives — now 5% to 12.8% — removed sooner. However, exports must still meet strict sustainability standards, including traceability and certi cation, to comply with the EU Deforestation Regulation (EUDR) taking e ect next year.

e EU currently recognises both the Indonesian Sustainable Palm Oil (ISPO) and Roundtable on Sustainable Palm Oil (RSPO) schemes, but nal accepted certi cations will be decided during ongoing negotiations. Industry leaders welcomed the tari removal but warned the EUDR’s deforestation-free requirements could limit bene ts. GAPKI chairman Eddy Martono said products must pass compliance checks before entering Europe, which may o set gains. Despite continuing WTO disputes over biodiesel and fatty acids, the pact could boost Indonesia’s palm oil access to Europe — though its long-term impact will depend on meeting EUDR rules.

Sulzer to provide BioFlux™ technology for SEDC Energy sustainable aviation fuel plant (2 July 2025)

SEDCE Partners with Sulzer Chemtech on SAF Pilot Plant in Sarawak

SEDC Energy (SEDCE) is collaborating with Sulzer Chemtech to deploy its BioFlux technology at Sarawak’s upcoming sustainable aviation fuel (SAF) pilot plant. e facility will convert locally sourced HEFA feedstocks – including algae oil, palm oil mill e uent (POME), animal fats, and used cooking oil (UCO) – into SAF.

Sulzer will provide process design, modular plant supply, and commissioning support, with BioFlux’s advanced reactor design expected to boost yield, extend catalyst life, and lower costs. e project marks a milestone in Sarawak’s strategy to build a greener energy ecosystem and strengthen its global standing in emerging downstream sectors.

Accompanying image: from le to right: Ilja Mikenberg, Global Head Process Solutions, Sulzer Chemtech, Robert Hardin, CEO of SEDCE, Tan Sri Datuk Amar (Dr) Haji Abdul Aziz bin Dato Haji

Hipni, Deputy Minister MEESty (Ministry of

Pertamina accelerates energy transition with biofuels, SAF

(15 September 2025)

Pertamina is accelerating Indonesia’s transport energy transition through biofuels, sustainable aviation fuel (SAF), and green hydrogen. A Pelita Air Service test ight from Jakarta to Bali on August 20 using Pertamina’s SAF showed up to 85% lower emissions than conventional fuel. e company is also preparing to support the B40 biodiesel mandate in 2025 with new green re neries producing hydrotreated vegetable oil (HVO). Further plans include hydrogen refueling stations in Jakarta (2026) and West Java (2028), alongside EV and battery ecosystem development via the Indonesia Battery Corporation.

Husain, Chairman of SEDC, Datuk Dr. Haji Hazland bin Haji Abang

Australian SAF developer Jet Zero welcomed the federal government’s new A$1.1bn investment to accelerate sustainable aviation fuel, calling it a “step-change” for its projects in North Queensland. Its agship Project Ulysses in Townsville is advancing with A$75m in engineering and early works, targeting 113ML per year of SAF and renewable diesel production by 2028. e company is also progressing Project Mandala (HEFA SAF) and Project Silvo Plus, which trials pongamia and agave as novel feedstocks. With Australia currently importing 91% of its jet fuel, Jet Zero says SAF development will strengthen fuel security, support agriculture, and align the country with global moves toward SAF mandates.

Jet Zero Australia welcomes funding to boost SAF

(17 September 2025)

Altalto secures UK Government funding for waste-to- SAF project

(18 September 2025)

Velocys-owned Altalto (Immingham) has secured UK Department for Transport funding to complete Basic Engineering Design for its agship waste-to-SAF plant. e project will integrate NEXTCHEM’s NX Circular™ gasi cation and NX CPO™ with Velocys’ MicroFTL™ technology, targeting 30m litres of SAF annually from municipal solid waste.

With FEED expected to start in early 2026, Altalto is positioned as the UK’s rst commercial-scale waste-to-SAF facility, capable of cutting over 100,000 tonnes of CO2e per year. Backed by strong government support and technology partners, the Humber-based project aims to be operational by 2030, supporting the UK’s SAF mandate of 10% by 2030.

19 November 2025 Malaysian Petroleum Club Floor 42, Tower 2 , KLCC

A pre-event networking dinner of 2nd Unlocking Revenue & Sustainability: Exploring Carbon Credit Opportunities in the Palm Oil Industry

Carbon credits to strengthen sustainability, MSPO, and ESG alignment

How millers & smallholders can turn carbon credits into real income

2,000 smallholder families in Thailand are in the process of qualifying for carbon credits.

ASEAN biomass in focus: Business-driven discussion on key strategies for monetisation and impact�

Scan QR to view the event brochure

Enjoy an exclusive skyline dining experience with industry peers while engaging in a short, high-impact forum on carbon credit opportunities in Malaysia’s palm oil sector.

Connect with plantation owners, millers, traders, and policymakers

Gain insider knowledge to prepare your business for carbon markets

Position your company at the forefront of ESG & sustainability strategies�

IISDS,

Adjunct Professor

UAC, University

From Lab to Life: Forging a Malaysian R&D Ecosystem at Delivers

For decades, Malaysia has aspired to transform from a manufacturing hub into a knowledge-driven, innovation-led economy. We have invested in gleaming science parks, established numerous public universities and research institutes, and produced a steady stream of graduates in STEM elds. Yet, a persistent question lingers: why has this considerable investment so o en failed to translate into the tangible economic impact and societal advancements we crave? A recent roundtable initiated by the PTD Alumni attracted much discussion on the state of the public service in the country. And would do well if transformed.

e issue of R&D came up for mention. e diagnosis is not a lack of talent or ambition, but a fractured ecosystem.

Our R&D

e orts o en operate in silos, trapped in a "valley of death" where brilliant ideas from laboratories never reach the commercial

To bridge this chasm, we must move beyond merely funding research and deliberately architect an ecosystem that is mission-driven, industry-obsessed, and ruthlessly focused on outcomes. A truly e ective R&D ecosystem is not a collection of independent parts, but a synergistic network. Malaysia should build upon the right pillars to invigorate a robust ecosystem.

Much of our public R&D is geared towards academic publications—a valuable currency for career advancement, but o en disconnected from national needs. We must pivot to a "mission-oriented" approach. Instead of asking researchers to simply pursue their interests, the government, in close consultation with industry, should de ne clear, grand challenges: "Achieve net-zero energy for SMEs by 2035," "Become a global leader in halal pharmaceutical standards," or "Revolutionise urban farming to achieve 50% food self-su ciency." is focuses intellectual repower on problems whose solutions will directly bene t the nation.

e private sector must be woven into the fabric of R&D from the very beginning. e current model, where academia researches rst and then hopes to nd an industry partner, is backwards. We need to foster deeper collaboration through: Mandating industry partnerships may do the trick: A signi cant portion of public research grants, especially for applied sciences, should require a letter of commitment from an industry partner who will co-fund and guide the project. Provide small and medium-sized enterprises (SMEs) with government-funded vouchers to "purchase" R&D expertise from public universities, lowering the barrier for engagement. And encourage sabbaticals for professors in companies and for industry experts to teach and co-supervise students in universities. is cross-pollination of ideas is invaluable.

e government’s role must evolve from a passive funder to an active "venture builder." is means creating pathways for ideas to become businesses. One idea is to use stage-gated funding: Instead of a large upfront grant, provide funding in stages tied to speci c commercial milestones (prototype development, securing a rst customer, achieving a certain revenue target). is instills nancial discipline and market awareness. We have labs for discovery, but we lack nationally accessible, a ordable facilities for pilot production and scaling. Investing in shared "maker labs" and pilot plants is crucial to de-risking the journey from prototype to product. And simplify the o en-byzantine process of IP ownership and licensing. Establish clear, standardised frameworks for universities and researchers that incentivise commercialisation while protecting their rights.

Our education and workplace cultures o en prioritise conformity over creative problem-solving. We must celebrate intelligent failure: Not every R&D project will succeed. We need to destigmatise failure as a learning step, not a career-ender. is encourages the high-risk, high-reward research that leads to breakthroughs. And incentivise mobility: Create attractive career paths for researchers outside of academia. A researcher should be able to move seamlessly between a university, a government lab, and a corporate R&D centre without penalty, bringing diverse experiences with them.

Building this ecosystem requires a "grand bargain" between all stakeholders. e government must provide strategic direction and patient capital. Academia must embrace impact and collaboration with industry as key performance indicators, alongside publications. Industry must invest its resources and market knowledge proactively, viewing R&D not as a cost but as the bedrock of future competitiveness. e pieces of the puzzle are all here in Malaysia. We have the brains, the infrastructure, and the desire. What we need now is the deliberate will to connect them into a coherent, dynamic, and purposeful whole. It is time to shi our focus from the number of papers published to the number of problems solved, companies created, and industries transformed. Only then will our investments in R&D truly deliver the Malaysia we envision.

Red Palm Oil: A Natural Protector of the Heart

Cardiovascular disease (CVD) remains the world’s leading cause of death. Nutrition plays a vital role not only in risk but also in prevention. Among natural foods, red palm oil (RPO), with its vivid red hue from carotenoids and rich supply of vitamin E tocotrienols, stands out for its unique cardioprotective properties.

How Red Palm Oil Guards the Heart

Coronary Heart Disease (CHD)

Antioxidants and tocotrienols reduce oxidative stress, keep arteries exible, and protect against ischaemia-reperfusion injury (damage caused by restoring blood ow a er a blockage)

Atherogenic Dyslipidaemia

RPO signi cantly improves the lipid pro le, lowering harmful LDL cholesterol and triglycerides while raising bene cial HDL. e tocotrienols speci cally inhibit cholesterol synthesis, operating much like a natural statin.

Hypertension

RPO enhances nitric oxide activity, which helps blood vessels relax. is action, combined with reduced vessel sti ness and calmed in ammation, helps to regulate blood pressure.

Heart Recovery

It supports recovery in heart failure, reduces tissue damage following ischaemic injury, and actively slows the progression of atherosclerosis (hardening of the arteries).

“Red palm oil is more than a cooking ingredient. It is a natural ally for a healthier heart.”

Nutrient Snapshot

(Per 1 tablespoon / 13 g)

Vitamin E (Tocotrienols): 10.5 mg

Carotenoids (Vitamin A precursors): 8.7 mg

Vitamin A: 0.9 mg

Phytosterols: 4.2 mg

Coenzyme Q10: 0.3 mg

Key Bene ts of Red Palm Oil for the Heart

Improves cholesterol pro le

Protects arteries

Supports healthy blood pressure

Aids recovery a er cardiac injury

Balancing Demand and Policy: Opportunities for Malaysia in Sri Lanka’s Palm Oil Market

A Market in Transition

Sri Lanka is once again at the centre of a debate on palm oil. On one side lies an economy that is hungry for a ordable, versatile edible oils in its food and industrial sectors. On the other hand, a government tries to balance trade, environmental, and domestic industry concerns through policy intervention.

For Malaysian exporters, this intersection presents both opportunity and risk. Malaysia has long been Sri Lanka’s most trusted supplier of palm oil, and despite recent turbulence, its role as a strategic partner is deepening. Yet challenges—ranging from shi ing regulations to consumer sensitivities—demand agility.

With Sri Lanka’s economy projected to expand by 3.3% in 2025 and over 4% in 2026, the demand for fats and oils will only increase. But local production cannot keep pace. As such, palm oil remains a cornerstone of Sri Lanka’s edible oil basket.

Sri Lanka’s Demand: A Structural De cit

Sri Lanka’s edible oil market has long been characterised by a mismatch between production and consumption. Data from the Household Income and Expenditure Survey (HIES) 2019 shows that an average household consumes about 1.8 litres of fats and oils per month, while industrial demand is even larger. Together, total national demand in that year reached approximately 275,000 tonnes.

Domestic production contributes less than one-third of that volume. Even at peak output, coconut oil production contributes about 108,000 tonnes, while crude palm oil and palm kernel oil add another 29,000 MT according to the Coconut Development Authority (CDA). is means that nearly 74% of Sri Lanka’s edible oil requirement had to be met through imports.

is de cit is structural. Even with the expansion of coconut plantations or incremental improvements in palm oil yields, Sri Lanka cannot self-su ciently meet its demand. Imports will remain critical for decades to come.

Policy Shi s and eir Ripple E ects

In April 2021, the government announced a ban on palm oil imports and a directive to phase out oil palm cultivation in favour of rubber. is drastic move, justi ed on environmental grounds, disrupted a market where palm oil accounted for up to 75% of edible oil consumption.

e ban quickly exposed vulnerabilities. Food processors, bakeries, and the confectionery sector, heavily reliant on palm-based inputs, faced severe shortages and rising costs. e Lanka Confectionery Manufacturers Association (LCMA) warned that thousands of jobs were at risk, as substitutes such as coconut oil were not only more expensive but also unable to replicate palm oil’s unique functional properties.

Financially, the shi proved costly. Replacing crude palm oil imports with expensive re ned coconut oil widened the price gap to around US$1,500 per tonne, translating into losses of US$15–20 million per month, or up to US$200 million annually. is out ow strained Sri Lanka’s already fragile foreign exchange reserves.

Although subsequent policy adjustments allowed some imports to resume, the legacy of the 2021 ban lingers. Today, re ners and manufacturers remain wary of sudden regulatory changes that can alter cost structures overnight.

Malaysia’s Established Position

Despite turbulence, Malaysian palm oil has maintained, and even strengthened, its dominance in Sri Lanka’s market.

Between January and July 2025, Malaysia exported 78,488 metric tonnes of palm oil and related products to Sri Lanka, almost double the 39,275 tonnes recorded during the same period in 2024. is surge re ects both recovering demand and Malaysia’s trusted position as a stable supplier.

e competitive advantages of Malaysian palm oil: Consistent quality and supply, established relationships with re ners and downstream industries and recognised sustainability certi cation under the Malaysian Sustainable Palm Oil (MSPO) standard. ese factors have allowed Malaysia to secure a long-term role in Sri Lanka’s edible oil equation.

Consumer and Industry Trends

Sri Lanka’s food landscape is undergoing a rapid transformation, shaped by rising urbanization and shi ing lifestyles. Several key trends stand out with strong annual growth between 2025 and 2028:

Challenges for Exporters

8%

Convenience food market

USD 2.64 billion

16%

Online food delivery

USD 1.07 billion

Palm oil sits at the heart of these shi s. Its cost-e ectiveness, versatility, and functionality make it di cult to replace at scale. From frying oils in fast-food outlets to margarine in bakeries, palm oil is interwoven with Sri Lanka’s changing consumption habits.

For Malaysia, this opens avenues not just in bulk oil exports, but also in value-added solutions—specialty fats, shortenings, and customised blends for industrial clients.

Outlook: Balancing Policy, Demand, and Partnership

Policy unpredictability

Sudden bans and licensing restrictions undermine con dence.

Taxation distortions

VAT and social security contributions have paralysed parts of the re ning sector.

Competition from substitutes

Sun ower, soybean, and coconut oil compete in niche applications.

Macroeconomic risks

Infrastructure constraints can delay shipments and increase costs.

Logistical bottlenecks

Infrastructure constraints can delay shipments and increase costs.

Sri Lanka’s palm oil demand is expected to remain steady, supported by population growth, urbanisation, and an expanding food sector. Palm oil’s cost-e ectiveness and versatility mean large-scale substitution is unlikely.

For Malaysia, the opportunity lies in moving beyond bulk shipments towards higher-value o erings such as specialty fats, bakery applications, and sustainability-certi ed products. Active engagement with policymakers and industry players will be essential to navigate evolving regulations.

Ultimately, Sri Lanka’s market highlights a wider global challenge: meeting rising demand while addressing sustainability and policy pressures. Malaysia’s role extends beyond supplying palm oil to shaping long-term, strategic partnerships.

Getting Our Palms Straight: Sawit, Semantics and Spectres

SAWIT: A Word with Deep Roots, Wild Shoots and a Few Surprising Twigs

Everyone in Malaysia and Indonesia knows oil palm as sawit - a word so familiar it rolls o the tongue like hot CPO on a re nery pipe. But have you ever paused mid-harvest, mid-article or mid-co ee and thought: Where on earth did this little syllable come from?

Fuelled by curiosity and a suspiciously strong kopi-o, I went digging. What I found was an etymological jungle - tangled, spiky, and oddly charming. Much like the oil palm itself.

Let’s start with a sturdy theory: Sawit may have sprouted from the old Javanese phrase sak wit, meaning “one tree trunk.” Fitting, isn’t it? A lone trunk, upright and unbothered, just like that mature Elaeis guineensis standing proud in the estate. And legend has it, somewhere in Central Java, a village stood beneath the shadow of a majestic tree so iconic, they named the place Sawit. Now that’s branding with bark and soul.

Next, things get unexpectedly stylish. According to Indonesian dictionaries, sawitan means “matching out ts” - same design, same colour, like a Raya family photo gone viral. Coincidence? Perhaps not. ink of those oil palm fruitlets - uniform in colour, tightly clustered in reddish-black (nigrescens) or bright orange (virescens) bunches. Haute couture, plantation-style.

But wait, it gets poetic. In ancient Javanese, sawit was also associated with threads, ropes, and necklaces - items worn over the shoulder. A metaphor, perhaps, for how this crop winds through the shoulders of nations, stringing together the lives of smallholders, planters, scientists, traders and everyone in between. A living, yielding garland of economy and ecology.

Now, here’s where the tale takes a cheeky detour to the Philippines. In Tagalog, sawit means… non-stop chatter. Yes, the kind of talk that makes you miss your turn on the highway. Speech diarrhoea, if you will. Could it be an omen of the endless debates surrounding palm oil - carbon footprints, EUDR, sustainability standards, regenerative agriculture, tax regimes, or simply why the fruit bunch didn’t ripen evenly this week? Either way, sawit certainly isn’t short on conversation starters.

And just when you think the word couldn’t wear more hats, along come the acronyms. In tech circles, SAWiT proudly stands for South Asian Women in Technology - a celebration of women making waves in the digital world. In South Africa, it represents the South African Wine Industry Trust. Imagine that: a single word linking oil, algorithms and alcohol. Talk about range!

From Salak to Sawit: e Prickly Bondthat Oiled the World

Did you know the oil palm is called Kelapa Bali in parts of Indonesia? Why? Beats me. Maybe because like Bali, it’s hot, exotic, and the center of many heated debates. Even Google threw in the towel on this one.

But hold onto your parang - things get even more entertaining in the Sundanese corner of Indonesia, where oil palm goes by the delightful alias salak minyak. No, not salah minyak (“wrong oil”) - though admittedly, we’ve all had those culinary disasters. is nickname might just be the most visually accurate metaphor in the edible oil world.

Picture this: an oil palm fresh fruit bunch - spiky, reddish, and tightly packed with oil-laden fruitlets. Now think of salak, also known as snake fruit. It’s as if salak hit the gym, got bu ed up, put on a thorny jacket, and rebranded itself as the alpha of the palm family. Add minyak (oil) to the name, and boom—you’ve got salak minyak, the heavyweight champ of edible oils.

But salak isn’t just a quirky fruit name. In Sundanese, it also means silver, a poetic nod to the shiny, scaly skin of the fruit. Talk about nature’s bling! Both oil palm and salak look like they came out of the same spiky, armoured fruit fashion showforti ed on the outside, and full of value within.

Let’s give salak its own moment in the sun. Native to Indonesia and Malaysia, this palm cousin stuns with its reptilian skin and delivers a avour bomb underneath - sweet, tangy, sometimes astringent and absolutely unforgettable. Just watch your teeth: those seeds are less fruit and more medieval weaponry.

I still remember my rst taste of salak in the 1990s, at a roadside stall in Mile 32, Sandakan. Curious, I brought some back to KL, and it became an instant conversation starter. “What is this? Is it edible? Is it safe?” All the right questions for any fruit worth knowing.

Years later, in Sumatra for a conference, I encountered Salak Madu - bigger, juicier and so sweet it could moonlight as dessert. Turns out, snake fruit had undergone its own gourmet evolution. Who knew?

e parallels between oil palm and salak are uncanny: both are tough on the outside, generous on the inside. One gives us golden oil for the world’s kitchens and cosmetics; the other, a bite-sized tropical treat with enough bite to match its bark. Salak minyak isn't just a clever name - it’s a tribute to the palm family’s secret superpowers: resilience, utility and versatility.

But the salak saga doesn’t end in the plantation or the fruit bowl - it’s gone global! In Malaysia alone, Salak is basically a postcode celebrity. ere’s Salak Tinggi, Salak South, Pasir Salak, Kg Salak, and even the Salak Expressway - your fast lane to snake fruit fame.

Zoom out a little and it gets wilder. ere’s Mount Salak in West Java, a town called Salak in North Sumatra, another Salak in Iran, and yet another in northern Cameroon. What started as a humble fruit now has a global fanbase - and a surprisingly busy travel itinerary.

So the next time you’re under an oil palm tree or biting into a scaly snake fruit, remember: these spiky twins aren’t just prickly oddballs. ey’re botanical powerhouses with a shared legacy. Who knew that between all the thorns, there was such a sweet story?

Projek SAWIT: A Golden Idea Waiting to Sprout in Sandakan

Once upon a time in Sandakan - where orangutans swing and tourists swarm - a seed of an idea was planted. No, not another oil palm seedling, but something bolder: an Oil Palm Park & Information Centre (OPPIC). e dream? To turn palm oil into a story worth telling, not defending.

It was the early 2000s, and the Sandakan Municipal Council (MPS) had a vision as rich as crude palm oil itself. ey wanted to build a one-stop hub - a vibrant, living museum that showcased palm oil’s journey from wild African origins to Sabah’s golden elds. OPPIC wasn’t just another photo op for passing tourists; it was a bold answer to a thorny question: Can we celebrate the palm oil industry and care about orangutans?

e plan was elegant. Tourists headed to Sepilok could detour into OPPIC to learn how the same region feeding global supply chains also houses pioneering R&D, sustainable practices and more palm oil derivatives than you can count on two hands. Students could wander through exhibits of tissue culture labs and harvesting tools. Locals, too, could nd a fresh sense of pride in their most famous crop.

OPPIC was meant to be more than bricks and brochures - it was Sabah’s chance to tell its own story, ipping the script from controversy to clarity, from demonised monoculture to nuanced economic lifeline.

And here’s where I entered the plot.

When I rst joined IJM Plantations, one of my earliest tasks was to develop a concept paper for this ambitious vision. But, as every dreamer quickly learns, visions require vaults - and vaults need funds. OPPIC needed millions. So, we needed a spark. Enter: Projek SAWIT.

Inspired by the Badminton Association of Malaysia’s BAMbee license plate fundraising coup (remember those ashy BAM 1 to BAM 9999 plates?), I proposed something similar, with plantation air. Imagine it: SAWIT 1 to SAWIT 9999, rolling proudly across Malaysia on trucks, Toyota Hi luxes, and even Bentleys - each plate a tribute to the industry that oils our economy.

Companies, agencies, even planters could bid for these exclusive plates. e proceeds? Channelled into a revolving trust to fund and sustain OPPIC. Functional, visible and slightly cheeky. I thought it was brilliant. Problem was, I was still “hijau”—fresh, eager, but tak cukup makan garam, as they say. Not salty enough with experience to turn vision into motion. Because here’s the hard truth: even the ripest ideas need champions. Not just believers, but movers. People in power who can grease the gears, sign the cheques and turn concept papers into concrete.

Still, sawit has always had a way of taking root.

From Bukit Sawit in Kalimantan to Sawit Seberang in Sumatra, and from Kampung Sawit to Nasi Lemak Sawit at plantation canteens, the name is more than a crop - it’s a cultural icon. Plantation companies name their estates a er it. Cafés serve it. Towns grow around it. Across Malaysia and Indonesia, “sawit” has become more than a label. It’s a legacy.

So maybe Projek SAWIT didn’t sprout then. But ideas, take time. With the right hands, it can still grow tall - anchored in purpose, branching into knowledge and bearing the fruits of understanding. Because let’s face it: if we don’t tell our sawit story, someone else will. And they might just get it all salah minyak. Hoping some people with power and purpose reads this!

Kelapa Sawit: Where Ghosts

Lurk Among the Palms

e name sawit has a way of popping up like mushrooms a er rain - not just in plantations, but on maps. One curious case? e quaint little town of Kelapa Sawit in Johor. Tucked just o the Jalan Kulai–Air Hitam Road, postcode 81000, this sleepy settlement is a postcard-perfect mix of heritage, horticulture and hauntings.

Established during the turbulent 1950s Malayan Emergency, Kelapa Sawit was one of the many New Villages birthed by British colonial strategy - part military containment, part social experiment. ousands of ethnic Chinese were resettled here, surrounded by perimeter fencing, curfews, and the thick, watchful eyes of history.

Fast-forward to today, and this once-isolated hamlet has blossomed into a peaceful Hakka enclave, still humming with dialect chatter and old-school warmth. On weekends, Kelapa Sawit turns into a low-key tourist magnet - especially for Singaporeans craving heritage, handicra s and Hakka food. Instagrammers now roam where tin-roofed shops and rubber slippers once reigned.

But linger too long, and you might notice something else in the air - something... unsettled.

Because just beneath this town’s rustic charm lies a tale that would make even seasoned ghost hunters clutch their EMF meters.

Back in the 1990s, during one of my plant breeding visits to the oil palm trials in Kulai, near Kelapa Sawit, I was warned - casually, half-jokingly, but with that look - to avoid spending too much time near the local police station.

“Why?” I asked. “Because the dead don’t clock out.” Cue nervous laughter, awkward silence... and the slow dawning of a story best told a er dark.

According to planters and locals, this wasn’t just a police lockup. It was a paranormal hotspot, a place where ghosts allegedly do more patrolling than the constables. And no, this wasn’t part of the town’s tourism pitch. is was whispered folklore mixed with a heavy dose of "you didn’t hear it from me."

e tale? Detainees would enter with swagger and leave shaken, pale and speechless - if they even stayed the full night. Some spoke of being watched. Others described whispers in unknown tongues, icy dra s in sealed rooms, or worse - dark shapes lurking just outside the barred windows. e truly unlucky, it was said, came out having lost more than their sleep, and occasionally, their bladder control.

eories swirled. Perhaps wartime spirits from the Japanese occupation? Victims of colonial-era interrogations? Or simply souls too disturbed to move on from a place that had once caged them in both body and spirit? Whatever the truth, the reputation stuck. Among certain old-timers, the Kelapa Sawit police station is still whispered about as Malaysia’s most haunted lockup.

And honestly—who needs escape rooms when you can have a “Sleep One Night If You Dare” paranormal challenge? With the right marketing (and a bomoh or two on speed dial), Kelapa Sawit could become the next haunted heritage hub - where ghost tours meet agro-tourism, and oil palm meets “ e Others”.

But the spookiness doesn’t stop at Kelapa Sawit. It tells of a places shaped by toil and tappers, by settlers and spirits. It says: we planted here, we stayed, and even the ghosts did too. So next time you pass through a place named SAWIT, whether it’s a sleepy kampung or a shiny estate, look twice. You may nd history in its soil, heritage in its people… and perhaps, just perhaps, a whisper from the other side of the palms.

Fronds vs. Fats: Untangling the Palm-y Confusion

Confession time. is one might ru e a few leaves - especially among my dear friends in the media who cover the oil palm industry (yes, I said oil palm). at’s your rst clue something’s about to get - semantic.

You see, I have a pet peeve. A frond- ipping, brow-raising, sigh-inducing trigger. And it’s this: when people - well-meaning journalists, bloggers or even policy wonks - casually mix up oil palm and palm oil as if they’re the same thing. Like calling a cow “beef” or a vineyard “merlot.” Harmless? Maybe. Accurate? Not quite. Let’s straighten this out before someone writes another headline that makes planters grind their molars.

If you’re talking about the tree, the crop, the estates, the machete-wielding workers, the smallholders squinting at fruit bunches under the equatorial sun - that, my friends, is the oil palm industry. It’s muddy boots, calloused hands, eldwork, and patience that stretches from seed to spikelet. It’s upstream. It’s the source.

Now, when you glide into the glossier bits - where shiny bottles of cooking oil are bottled, fats become soaps, and oleochemical derivatives nd their way into everything from lipstick to lubricants - you’ve crossed into the palm oil industry. at’s downstream. e territory of processors, packers, formulators, and supply chain specialists who wear cleaner shoes (usually).

And what about the humble palm oil mill - the unsung middle sibling in this botanical drama? It doesn’t grow the fruit, nor bottle the oil, but it does the heavy li ing in between. It processes the fresh fruit bunches (FFB) into crude palm oil (CPO), bridging upstream sweat with downstream sparkle. Is it upstream? Downstream? Or… midstream - a mystical realm only logistics experts dare de ne? Let’s leave that philosophical debate for a rainy day under a gazebo in the estate.

Now, here’s the billion-ringgit question: when we refer to the whole enchilada - from seedling to supermarket shelf - what should we call it?

My vote: oil palm industry.

Why? Because everything begins in the dirt. Without the upstream - without that stubborn seedling surviving oods, pests, and sustainability audits - there’s no palm oil. No cooking oil. No shampoo. No biofuel. No cookies. No revenue. Upstream is the root of the tree, both literally and economically. It feeds the entire supply chain.

In fact, in Bahasa Malaysia, we have this split baked into the vocabulary: industri kelapa sawit (the tree and eld stu ) versus industri minyak sawit (the oil and products stu ). But rather than stress over it, may I suggest a friendlier middle ground? In BM, just call it industri sawit – no kelapa, no minyak. Solved!

It’s short, sweet and keeps everyone from getting their fronds in a twist. Whether you’re upstream, downstream, or somewhere oating in the supply chain stratosphere, sawit unites us all.

So, next time you pen an article, dra a report, or argue with a know-it-all over co ee, remember: palm oil comes from oil palm - but they’re not twins, just close cousins. Let’s give credit where it’s due. Start at the seed. Speak for the tree.

Fronds Gone Wrong: Getting Our Palms Straight

And now, for one nal rant -er, gentle reminder - to wrap this whole palm-powered saga with a bow of botanical truth. Let’s talk about a cardinal sin in oil palm reporting: misidentifying the tree itself.

You’re midway through an article about the oil palm industry - CPO prices, sustainability battles, maybe even planters’ heroics - and what greets your eye? A glorious, golden-hued photo of... a date palm. Or worse, a coconut tree basking dreamily on some beach in Bora Bora. It’s the botanical equivalent of writing about elephants and slapping in a photo of a woolly mammoth.

In my former life managing corporate and industry comms, I had the regular pleasure (and occasional exasperation) of picking up the phone or tapping out WhatsApps that began with: “Hi, sorry to trouble you, but that’s not an oil palm tree. at’s a date palm.” Cue polite confusion, frantic photo swaps and one or two humble apologies.

Now, for those who skipped Botany 101, here’s a cheat sheet. e Arecaceae family - yes, palms - has around 2,600 species. Some crawl. Some climb. Some look like they came from Jurassic Park. But Elaeis guineensis, the African oil palm, is our MVP (most valuable player). It thrives in the tropics and produces more oil per hectare than any of its palm cousins. Date palms and coconuts? Lovely to look at. But productivity-wise, they’re bringing a spoon to a bu et.

Next, we enter the age of AI-generated images - and we’re in a whole new palm mess.

Have you seen what AI thinks an oil palm estate looks like? It’s like someone fed the bot a bu et of cartoon fruits. What comes out is o en a bizarre mishmash of rubber trees, coconut trunks, and surreal fruit bunches that look like they belong in a Pokémon game. Estate workers gliding around like they're in a Tesla showroom? Nope. AI clearly hasn’t met tropical heat, uneven terrain, or a stubborn harvester who’s many hours behind quota.

is is why media outreach must level up. We need to get the visuals and the vocabulary right. If we want global audiences, policymakers and even our own citizens, especially our youths to understand and appreciate the oil palm sector, it starts with getting the basics correct. An Oil Palm 101 for journalists wouldn’t hurt. Neither would a few eld trips to let media folks meet the real stars of the show - muddy boots, FFBs, mills and all.

Because when you mislabel a photo, you don’t just mislead, you dilute the narrative. You unintentionally erase the people, the processes, and the purpose behind one of the most impactful agricultural industries in the world.

So, the next time you spot a coconut tree pretending to be an oil palm, or a pristine date grove moonlighting in a palm oil feature - raise your eyebrow. Someone’s mixed up their monocots.

And remember: oil palm products don’t just grow on trees - they grow on knowledge, labour and livelihoods. Let’s honour them with the right words, the right pictures, and a whole lot more respect.

Because in the end, getting it right isn’t just good journalism - it’s good stewardship.

KEY PALM OIL MID & DOWNSTREAM STAKEHOLDERS:

MINISTRIES, 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/

(Conference and Exhibition)

(FOR MALAYSIANS)

(Peatland management & fertiliser optimisation)

(Agricultural waste-to-energy, POME conversion to biofertilisers, biogas-to-energy, biochar and biomass

(Carbon Capture and Storage of re ning process, biofuel

(Precision agriculture, biofertiliser, biogas, biochar and biomass,

Carbon Market

Seminar

• International and ASEAN Carbon Market Authorities & Experts

• Malaysian Carbon Policy Leaders and Decision-Makers

• Financial Institutions

• Corporate Net-Zero Pledges

• ESG and Carbon Consulting Experts

• Carbon Project Developers

• Technology Experts & Providers

• International Carbon Compliance Standards/Certi cation Protocols, Validation & Veri cation Bodies (VVBs), Carbon Rating Experts

• Compliance and Voluntary Market`s Buyers & Traders, and Carbon Exchange Platforms

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.