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Malaysia is ramping up e orts to expand its palm oil footprint in China through a high-level trade mission led by Deputy Plantation and Commodities Minister Chan Foong Hin.
e delegation - including Ministry secretary-general Datuk Yusran Shah Yusof and Malaysian Palm Oil Board (MPOB) director-general Datuk Dr Ahmad Parveez Ghulam Kadir - will begin in Shanghai, marking the 20th anniversary of MPOB’s Palm Oil Research and Technical Service Institute (PORTSIM). e institute supports R&D, technology transfer and product innovation for the Chinese market.
Malaysia Eyes Growth in China’s Palm Oil Market with Strategic
(18 May 2025)
e delegation will then head to Chengdu and Chongqing to meet government o cials, local enterprises and state-owned rms. Discussions will focus on expanding palm oil use, especially in regional cuisines like mala hotpot, and strengthening trade and investment links. “Western China is an emerging market with rising demand for sustainable raw materials. We aim to deepen Malaysia’s presence here,” the ministry said.
China is Malaysia’s third-largest palm oil importer, accounting for 10% of export value in 2024. Exports to China grew 5.1% to RM10.57 billion in 2023, with Malaysia holding a 26.7% market share. e visit underscores Malaysia’s commitment to diversifying markets amid shi ing global trade dynamics.
China could turn to palm oil
amid trade tensions
(17 April 2025)
Rising US-China trade tensions may boost China’s demand for palm oil as a substitute for soybean, according to Hong Leong Investment Bank (HLIB) Research.
With the US imposing a 145% tari on Chinese goods and China retaliating with a 125% tari , trade ows within the global vegetable oil market are shi ing. China is expected to reduce reliance on US soybean imports, turning instead to South America or replacing soybean with palm oil.
HLIB cited 2018 as an example: China's 25% tari on US soybeans led to a 57% drop in imports from the US, while imports from Brazil surged by 41%. at same year, China’s palm oil imports rose by 5% to 5.3 million metric tonnes. However, HLIB cautioned that global demand uncertainty - driven by volatile US policies and falling crude oil prices - may limit the positive impact on palm oil. In 2024, the US imported 1.8 million metric tonnes of palm oil, mostly from Indonesia. us, US tari s are expected to have minimal direct impact on Malaysian palm oil exports.
HLIB maintains its crude palm oil (CPO) price forecasts at RM4,000/mt for 2025 and RM3,800/mt for 2026, noting that recovering supply will likely cap price gains.
Malaysia is deepening its foothold in East Africa’s edible oils market following a high-level trade mission to Kenya led by Minister of Plantation and Commodities, Datuk Seri Johari Abdul Ghani. e visit aimed to enhance cooperation and boost sustainable palm oil exports to the region.
Kenya has emerged as Malaysia’s top Sub-Saharan African importer, taking in 1.3 million metric tonnes out of the 3.7 million tonnes exported to the continent in 2024. Johari chaired a roundtable with 19 major players from Kenya’s oils and fats sector, focusing on trade expansion, downstream processing, and Kenya’s potential as a re-export hub to markets like the European Union. He rea rmed Malaysia’s commitment to sustainable practices, noting that all palm oil exports are certi ed under the Malaysian Sustainable Palm Oil (MSPO) standard.
Malaysia Strengthens Palm Oil Trade with Kenya, East Africa’s
Gateway
(9 May 2025)
Malaysian Palm Oil Council (MPOC) CEO Belvinder Sron highlighted exports to Kenya more than doubled in ve years, driven by growing edible oil demand and a robust manufacturing sector. e mission re ects Malaysia’s broader strategy to diversify markets and build lasting, mutually bene cial trade ties in high-growth regions.
When Will We Take Process Safety Seriously in Palm Oil Mills?
(23 May 2025)
Columnist Hong Wai Onn highlighted of another steam boiler explosion at a palm oil mill recently that injured four workers - yet another avoidable incident in a string of pressure vessel accidents. is includes past fatalities, such as four lives lost from a steriliser blast. ese are not freak accidents. ey re ect a systemic failure in how process safety is managed across the palm oil sector. Risk assessments are o en shallow, maintenance practices inconsistent and engineering modi cations poorly controlled or undocumented.
While Malaysia’s Department of Occupational Safety and Health (DOSH) calls for adherence to procedures, what’s urgently needed are transparent, technically robust investigations. Lessons must be shared, not buried. A UK-style approach - where detailed accident reports drive training, policy, and practice - should be emulated.
Current hazard assessments like HIRARC are insu cient for complex systems. High-risk equipment demands structured methods like HAZOP, standard in oil and gas but still rare in palm oil. e root problem? e 3Cs: poor equipment Condition, inadequate Competency, and weak Commitment. Without addressing these, safety remains elusive. Regulators must shi from enforcers to enablers—mandating proper reviews, publishing data, and promoting a learning culture. It’s time we took process safety seriously - before the next tragedy strikes.
Malaysian palm oil producers have criticised the European Union Deforestation Regulation (EUDR) for unfairly classifying Malaysia as a “standard risk” country, potentially limiting access to the EU market.
Malaysian Palm Oil Council chairman Datuk Carl Bek-Nielsen called the decision “unjust and very unfortunate,” noting Malaysia’s signi cant progress in reducing deforestation and improving sustainability. “It’s like being ned for speeding when you’ve stayed below the limit,” he said, pointing out that oil palm area has declined for the rst time in over a century.
Industry’s green e orts red- agged
(25 May 2025)
Malaysian Palm Oil Association CEO Roslin Azmy Hassan warned that the EUDR risks becoming a non-tari barrier, particularly harming smallholders despite their compliance with the Malaysian Sustainable Palm Oil (MSPO) certi cation. “ e classi cation undermines livelihoods and contradicts Malaysia’s pledge to retain at least 50% forest cover - made at the 1992 Rio Earth Summit and still upheld,” Roslin said. He questioned the fairness of labelling Malaysia “standard risk” while some EU countries with deforestation histories were deemed “low risk,” calling the benchmarking process opaque and biased. Despite Malaysia’s participation in joint dialogues with the EU, Roslin said results have been disappointing, raising concerns about the credibility and intent behind the EUDR framework.
Sarawak now Malaysia’s top palm oil producing state
(24 May 2025)
Sarawak has overtaken Sabah to become Malaysia’s largest palm oil producer by plantation area, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
Citing the Department of Statistics, he said Sarawak exported RM14.3 billion worth of palm oil in 2023, making it the state’s top export commodity. With over 1.6 million hectares under cultivation, Sarawak’s palm oil sector continues to expand rapidly.
Speaking at the launch of SALCRA’s new Kernel Crushing Plant, Abang Johari attributed this success to landowners, SALCRA participants, and the adoption of modern technologies. "E cient systems like conveyor-based panels have improved productivity, reduced costs and minimised environmental impact,” he said. He emphasised the importance of expanding downstream activities to further increase revenue, including biofuel, animal feed, and clean energy production. “Palm oil processing can even produce hydrogen, which can power public transport and generate electricity,” he noted. He called for greater investment in downstream industries to enhance Sarawak’s competitiveness and position as a key player in the national palm oil sector. “Strengthening these initiatives will enable Sarawak to surpass RM14 billion in exports and drive sustainable economic growth,” he added.
Malaysia’s palm oil waste has the potential to generate up to 1,000 megawatts (MW) of renewable energy, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. Speaking a er a visit to Gas Malaysia Bhd’s new biomethane injection station in Kluang, Johari highlighted the untapped value of palm oil mill e uent (POME) from the country’s 450 mills. “With an average of 60 tonnes per hour per mill, the waste can yield nearly 1,000MW,” he said.
He called the biomethane sector a key component in achieving Malaysia’s net-zero emissions and circular economy goals. e Kluang facility, set to be fully operational in late 2025, will inject biomethane into the national gas grid. Malaysia aims to cut methane emissions by 30% by 2030. Johari stressed that this strategy not only supports sustainability commitments but also improves the palm oil sector’s global image.
Malaysia’s Palm Oil Waste Can Power 1,000MW of Renewable Energy, Says Minister
(20 May 2025)
He reiterated a rm stance on forest conservation, warning industry players against planting on deforested land. “No forest, no certi cation,” he said, reinforcing the importance of the Malaysian Sustainable Palm Oil (MSPO) standard. He also urged yield improvements through better practices and planting materials, not land expansion.
China Eyes US$9.1 Billion Green Investment in Indonesia’s
Palm Oil Sector
(20 May 2025)
Chinese investors are eyeing up to US$9.1 billion (Rp149 trillion) in Indonesia’s palm oil sector, focusing on modern, low-emission processing technology, according to the Indonesian Palm Oil Board (DMSI).
DMSI Chairman Sahat Sinaga said investors have shown strong interest in building facilities to process fresh fruit bunches (FFB) using greener, more e cient machinery. e proposed seven-year investment plan, starting in 2026, aims to replace outdated technologies that contribute to high carbon emissions. Sahat emphasised the potential for farmers to bene t not only from higher processing yields but also from carbon credit revenue—pending government approval for international carbon trading. “We want farmers to become subjects, not just objects,” he said. “With proper technology, even palm bunch bers have value.” DMSI also plans to rebrand crude palm oil (CPO) as degummed palm mesocarp oil (DPMO) and shi from steam-based to hot air processing to further cut emissions.
Although Indonesia’s palm oil exports dipped 3.55% in March 2025 from the previous month, they rose 40.85% year-on-year. If approved, this investment could modernise Indonesia’s palm oil industry, boost sustainability and upli rural livelihoods.
resilience of wildlife and the importance of environmental stewardship.
Egrets in Oil Palm Plantations: A
Every time I step into an oil palm plantation in Sabah, my attention is immediately stolennot by the rustling of fronds or the towering trees, but by the elegant, snow-white silhouettes of egrets. ese tall, graceful birds glide e ortlessly through the landscape, their white plumage gleaming like oating silk in the tropical sun. It’s a beautiful, almost poetic sight - a living testament to how wildlife and agriculture can coexist in
What makes egrets so fascinating is their adaptability. ey’ve turned oil palm plantations into a bu et and a playground. You’ll nd them everywhere: perched atop fronds, poking around replanting sites, loitering near e uent ponds, and even stationed on the palm oil mill ramps as if supervising operations. ey stalk drainage ditches and ooded elds with the focus of seasoned hunters, waiting for the slightest twitch of a frog or rustle of
And then there’s the bu alo connection - a delightful, almost whimsical partnership. In plantations that still use water bu aloes, egrets o en hitch a ride, perched nonchalantly on the animals’ backs like royalty surveying their domain. As the bu aloes graze and stir up the soil, out come the insects and critters - an e ortless feast for the opportunistic egret. It’s mutualism at its most charming: the bu alo gets a bug-free back, the egret gets dinner on
Even the oil palm trees themselves, hardly ideal perches, are cleverly repurposed by egrets. ey perch on ripened fruit bunches or nestle among the fronds, using them as lookouts to spot prey or simply rest. It’s a subtle but impressive display of behavioural exibility - proof that even in a man-made environment, nature doesn’t just adapt; it thrives.
eir presence adds an unexpected layer of ecological richness to the plantations. Egrets are more than just beautiful birds - they’re part of a living system that includes insects, water, bu aloes and even humans. rough their foraging, perching and symbiotic behaviour, they remind us that biodiversity is not just about untouched wilderness. It can also be found in the heart of a plantation, where the wild and the cultivated overlap.
Egret Plumes: A Dark Chapter in Fashion History
e name egret comes from the French word aigrette - a term that once referred not just to the bird itself, but also to the elegant, wispy plumes that adorn it during breeding season. ese feathers, so as silk and delicate as lace, once crowned more than just birds - they became high fashion, adorning everything from extravagant hats to evening gowns. But behind the glamour was a story as tragic as it was beautiful.
As I watch egrets grace the oil palm plantations of Sabah - gliding across irrigation canals or perched like white re ies on ripening fruit bunches - I can’t help but re ect on the origins of the idiom, “birds of a feather ock together.” It’s a phrase rooted in nature, a celebration of kinship, safety in numbers, and social bonding. e ancient Greeks noticed it, too - how the like-minded or like-bodied naturally gather. But for egrets, this natural instinct once turned deadly.
In the late 19th and early 20th centuries, as feathered fashion reached its frivolous peak in Europe and America, egret colonies became targets. eir fatal aw? Flocking together - especially during breeding season when their prized plumes were at their most extravagant. Entire rookeries were wiped out in a single day, not for food, not for survival, but for fashion.
Plume hunting in the Mat Salleh world was a booming, brutal industry. Feathers were worth more than gold, and hunters followed the money. ey didn’t take a feather or two - they took lives. ousands of birds were slaughtered, o en leaving nests full of chicks to starve. e very beauty that evolution had sculpted over millennia to impress mates and inspire awe became the cause of their near extinction. e egret’s elegance became its curse. ankfully, this dark chapter didn’t end in silence. It ignited a spark. Outrage over plume hunting led to the birth of modern conservation. Laws were passed, sanctuaries created and slowly, the skies began to ll with white wings again.
A Funny Encounter: "Why Are ere Statues on the Oil Palm Bunches?"
During one of my past ‘Walk With CEO’ stakeholder engagement visits to the plantation, I had the pleasure of guiding a group of visitors who were enthusiastic - but let’s just say, not exactly seasoned in the ways of palm oil. It was one of those hot, humid days where even the trees seem to be sweating, and we found ourselves at the palm oil mill ramp, admiring the massive piles of fresh fruit bunches stacked like nature’s version of treasure chestsbristling with crimson, orange, and gold.
As we took in the scene, one visitor suddenly pointed and furrowed their brow. “Wait... why do you guys put bird statues on the fruit bunches? Is it, like, some kind of agricultural feng shui?”
I blinked, then looked up - and burst into laughter. ere they were: several large, ghost-white egrets, perfectly poised atop the ripest bunches, standing so still they could’ve easily passed for hand-carved porcelain sculptures. Not a feather out of place. Not even a blink. I couldn’t blame our guest - they looked like something you’d order from a high-end garden catalogue titled “Avian Elegance for Industrial Settings.”
Trying to compose myself, I replied with as much seriousness as I could muster: “Actually, those aren’t statues. ey’re real egrets. ey’re just incredibly committed to their art of not moving.”
You could practically see the gears turning in the visitor’s head, trying to reconcile the living with the lifeless. And then, as if on cue, one of the “statues” gave a subtle ru e of its snowy feathers before settling right back into its stoic vigil. e visitor’s jaw dropped. We all stood there for a moment, sharing the delight of discovering that the mill ramp had a few feathered freeloaders moonlighting as performance artists.
It was the perfect segue into a conversation about just how remarkably adaptable these birds are. Egrets have turned our plantations into their personal bu et and observation deck. Perched atop fruit bunches or loitering near mill ramps, they use their statuesque stillness as a hunting strategywaiting for the vibrations, heat, and activity of the mill to stir up insects, small reptiles and other tasty yummies.
ese birds aren’t lost. ey’re strategic. ey're opportunists in white coats - nature’s version of patient entrepreneurs - calmly waiting for the perfect investment (or insect) to emerge.
at unexpected moment gave our visitors a deeper appreciation of the plantation’s hidden biodiversity. It was a reminder that even in a place dominated by machines, metal and monoculture, nature nds its way - not just to survive, but to thrive, blend in and even crack a joke now and then.
So yes, next time you’re at a mill and see a white bird frozen like a statue on a fruit bunch, don’t ask about feng shui. Just smile, nod in respect, and know you’re in the presence of one of the plantation’s most serene, skilled (and unintentionally hilarious) hunters.
Egrets in the Plantation: Guardians of Balance, Beauty and Resilience
e presence of egrets in oil palm plantations brings a surprising touch of grace and ecological harmony to the structured plantation landscape. With sharp eyes and poised patience, these elegant birds serve as nature’s pest control—gracefully reducing insect populations without charging a fee.
But their role goes beyond function. Egrets add beauty and biodiversity, turning rows of palms and busy mill ramps into unlikely sanctuaries. Alongside other adaptable species, they’ve made themselves at home, reminding us that nature doesn’t need perfect conditions - just a foothold.
You’ll nd them everywhere: perched like sculptures on fresh fruit bunches, stalking through wet elds, or catching a ride on a bu alo like feathered aristocrats. eir adaptability is a quiet marvel - a lesson in how wildlife can ourish even in cultivated spaces.
So next time you see a still, white gure atop a palm bunch, don’t wonder why someone’s decorating the fruit. at’s no statue - it’s a silent, striking partner in the plantation’s ecosystem. In their stillness, they bring balance.
In their presence, a reminder: even in the plantation, the wild endures.
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Voices of Vision
As arti cial intelligence reshapes industries across the globe, the palm oil sector is beginning to witness its own quiet revolution. Leading the charge is AIREI, a homegrown tech innovator whose AI solutions are rede ning how palm oil mills operate, starting with the transformation of a 42-year-old facility into a smart mill.
Surendran Kuranadan Chief Executive Officer
Q: Can you walk us through your journey of implementing AI in a palm oil mill?
e mill we upgraded is 42 years old mill with a standard capacity of 45 tonnes. Upgrading such facility with AI was a big challenge and it’s not something which is easily done. It took us about nine months to complete the project. What sets our work apart is how we’ve moved beyond traditional automation. Many mills already use sensors, PLCs, and SCADA systems. But even with that setup, operation still rely heavily on human intervention. For example, SCADA might alert you that the temperature is high, but someone still need to manually open or close valves.
Our AI engine works like a human brain – it receives real-time sensor data, processes it and acts automatically. e AI engine sends the signal back to the control system, and the system auto-regulates the parameters like temperature and pressure. So, you no longer need a supervisor or worker to physically go to get it recti ed.
Q: What impact has this had on your mill?
When we started, the mill had 66 workers. By the time we completed the project, the number had been reduced to 44 workers, and that was only up to December last year. In the rst three months of 2025, we further reduced the number to just 38 workers. at’s a 45% reduction in manpower.
And this is what we want, as the government, ministry, and other palm oil-related bodies have consistently advocated that we need to bring down the dependency of labour, particularly on foreign labour. Fair enough, we are proud to say that we have achieved that goal.
Q: Would you say the implementation of this system directly contributes to cost savings?
De nitely. Cost saving. I would say that is a very tangible bene t you can see immediately. Right a er implementing this system, you can see a reduction in manpower. at alone has resulted in about RM 1.1 million in savings. Why? Because with the rising minimum wages and need to ensure worker’s welfare, putting all that into consideration, you are saving signi cantly.
Q: How do you address concerns about job losses due to automation?
I would say about half of the workforce is now gone. ings are getting better in the mill. Our goal is to reduce reliance on foreign workers. For local workers, we are repositioning them into more technical roles so that they can elevate themselves beyond just opening the valve, closing the levers – those are basic tasks. ose with basic SPM level, they experienced in learning. So, we are pushing them further to operate from control room, interpret sensor data and more advanced tasks.
Q: So essentially, there’s a plan to reskill and retrain them?
Yes, we’re doing that. Instead of having them come in just to carry out manual routines, we put them in positions where they feel more valued – “I'm so needed now. And I think I can learn much better things”. We train them to understand and control the ow of the process, a complete process control.
Q: Doesn’t AI implementation require hiring high-cost technical personnel? How does that a ect your overheads?
at’s actually a common misconception. When we implement AI and high-tech systems in the mill, the intention is to create a sustainable setup. It shouldn’t reduce one side and increase on the other. If it balances out, then it’s not really a saving. We’re not bringing in professionals. Our team provides the setup and guidance. And it’s a simple operation where the AI engine handles all decision-making. In the current mill, we don’t have many engineers or high-tech sta . Running a palm oil mill is very easy if you follow the procedures. I think every miller would agree that human error is the biggest issue, and that’s exactly what we’re removing.
AIREI: Adoption and Expansion
Q: Is your AI system exclusive to Minsawi Palm Oil Mill?
Being a palm oil miller, we have always engaged with machineries, so our mindset has always been physical: we want to see it, touch it and feel it. Okay, this is working, I can see it, I can feel it, there’s more oil coming out, there’s more kernel coming out. We wanted to make Minsawi as a showcase site. is is the same setup of what you have in your place. It’s the same size, same capacity. We are also processing the same thing. Come and have a look for yourself. We implemented the system there, proved that it works, and had the Honourable Minister come and launch it. We presented the results to him that this is a workable project, including the revenue generated. And now, we are open to anybody who wants to adopt that technology.
Q: How do you ensure data security, especially with so much data being processed?
It is the fact that everybody will have that fear of their data being breached. Cuber security is very important when we do this. For our project, we only deal with local service. AI systems require large volumes of real-time and historical data. For example, we use CCTV images to detect if someone is working inside a machine area before it starts up. ose images are constantly captured and processed within the engine. So much data, we cannot host it on cloud. e data belongs to the mill and remain secured within the mill.
Q:With emerging competitors like DeepSeek positioning themselves against ChatGPT, how do you protect your system from being copied?
is is a very interesting question. People always come and ask us, “Hey, you’ve got a nice technology, did you patent it?” Now, my answer to that is de nitely a big no.Why? Because this is like a wave in the sea. Can you go and patent one wave and say, “ is wave is special”. No. You keep on getting waves. And this is an industry that keeps evolving.
What we need to do is constant innovation. If I have done Phase One, I must already start thinking about Two, ree, Four, and Five. I need to keep evolving. Rather than patenting my Version One and just waiting, I will die.
Q: How does a mill start the process if they want to adopt your system?
We begin with due diligence. Our team visits the site to assess the mill’s capacity, existing systems, and infrastructure. DO they have SCADA or PLCs? A report will be prepared.
Our system is exible and customisable We don’t tell you to scrap your equipment, use ours. Instead, we integrate with what they have, including the so ware. is way, you don't have to spend so much.
Q: Are you working on any new innovations?
Yes, we have Smart Mill Version 2 coming up. We focus on automated, unmanned grading of fresh fruit bunches (FFB). is is especially important in Malaysia, Indonesia, and even Latin America. It’s challenging because di erent regions have di erent clones and grading standards. We’re also working on the upstream side by developing a robot for harvesting. It’s still in the preliminary stages. We are trying to push further and aiming to have something workable by next year. And it’s not easy because it requires a lot of data.
Q: You have a partnership with Fine Instrument Technology (FIT), a startup company from Brazil, can you explain more about it, and is there any opportunity for expansion in Latin America?
Yes, we partnered with FIT whose machine is called SPECFIT. is collaboration allows us to gather data much faster than traditional practices. Measuring oil losses from various points of mill takes six to eight hours. With this device, it is shortened to two minutes. e more sample and data I get, the more helpful for my AI model to process. It’s a two-way partnership. We buy their systems, and they adopt ours - a kind of cross-marketing approach. ey are doing quite well in Brazil, Colombia, Ecuador, and Guatemala.
We have quite a few businesses running in Brazil and we are also trying to penetrate Colombia. Mill operations are the same across the world, the same process, the same crop. So, if AI adds value in Malaysia, likewise, other countries producing palm oil needs AI too. And I'm quite surprised with the reception from the Latin Americans and the Africans. ey are very aggressively looking for new technologies. And the expansion is in play for us.
Final Thought: A Yes or No
Q:What do you say to millers who are sceptical about AI?
I o en use the washing machine analogy. When the machine was rst introduced, many laughed at the idea. Eventually, it started o . e next generation are looking ways to simplify things. Whatever we do now is cut short by ChatGPT, DeepSeek. So why is the palm oil mill le behind? ese are ways to attract younger generations to continue their legacy in the palm oil industry.
Q: As a nal thought, if a mill owner is on the fence with adopting AI, what’s one key message you would leave them with?
If you are on the fence, you will be sitting on the fence forever. It’s yes or no, it’s a do or die. In tech industry, especially AI, it’s evolving every hour. If you are not the early adopters of the systems, you are de nitely going to be le behind. It is moving too fast that if you don't replace your old practises with new practises, it is going to be a game by itself.
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
Circular Economy to Realise Economic Value of Malaysia’s Biomass
Tan Sri Omar Centre for STI Policy IISDS, UCSI University
e potential economic value of biomass to Malaysia is signi cant, given the country’s abundant agricultural and forestry resources. Biomass can be transformed into energy, bio-based materials, and high-value products, providing multiple economic bene ts across various sectors.
Biomass, including palm oil residues, rice husk, and forestry waste, can be converted into bioenergy, providing Malaysia with a renewable energy source. e country has set renewable energy targets under the Renewable Energy Act 2011, and biomass can play a crucial role in helping Malaysia reduce its dependence on fossil fuels and meet its climate goals.
Bioenergy can help lower fuel imports, reduce energy costs, and generate local employment in rural areas. Additionally, developing biomass power plants can attract foreign investments and open up opportunities for local entrepreneurs to provide energy to o -grid communities.
By utilizing biomass for energy production, Malaysia can earn carbon credits under the Clean Development Mechanism (CDM* or voluntary carbon markets, adding another revenue stream for companies and local industries involved in bioenergy production.
Malaysia’s palm oil industry produces large amounts of biomass waste, including empty fruit bunches (EFB), palm kernel shells, and palm oil mill e uent (POME). Typically considered waste, these materials can be monetized as raw materials for bioenergy, bio-based products, and compost, reducing waste management costs for plantations.
Smallholders and farmers can earn additional income by selling agricultural residues to bioenergy companies or bio-based product manufacturers, boosting rural economies.
Biomass residues can be processed into biofertilizers, reducing the need for chemical fertilizers and lowering input costs for farmers. is can also improve soil health and boost agricultural productivity in the long term, bene ting Malaysia's food security and export potential.
e development of biomass industries, such as bioenergy plants, bio-re neries, and waste collection networks, can create signi cant employment opportunities, especially in rural areas where most of the biomass is produced. Jobs will be created in harvesting, transportation, processing, and energy generation.
e biomass sector can stimulate the demand for skilled labour in areas such as bioenergy technology, advanced materials processing, and sustainable agricultural practices. It can also create opportunities for entrepreneurship and innovation, particularly in small and medium-sized enterprises (SMEs) engaged in bio-based product development.
By transforming biomass waste into valuable products, Malaysia can signi cantly reduce the costs associated with waste disposal, including land lling and incineration. is is particularly important for the palm oil and timber industries, which generate large quantities of organic waste.
Recycling biomass waste into bioenergy or bio-based materials can result in signi cant cost savings for companies in terms of waste management, reducing the need for expensive land ll sites or waste treatment facilities.
Biomass can be converted into various high-value products, such as bioplastics, biochemicals, biochar,** and bio-composites, which have applications in industries ranging from agriculture to packaging and construction. ese products can replace petroleum-based materials, reducing reliance on imports and fostering a domestic bio-economy.
As global demand for sustainable products rises, Malaysia can position itself as a leading exporter of bio-based products. By leveraging its agricultural and forestry waste streams, Malaysia could become a major supplier of bio-based packaging, renewable chemicals, and eco-friendly building materials in the region.
Embracing a circular economy for biomass can reduce waste and improve resource e ciency. Industries can collaborate in symbiotic ecosystems, where waste from one sector becomes a resource for another.
Malaysia currently also imports fossil fuels, and biomass could help reduce this dependency by providing a local and renewable energy source. Biomass, when converted into biofuels like biodiesel and bioethanol, can be used in the transportation sector to lower reliance on imported oil.
e diversi cation of energy sources through bioenergy can help stabilise energy prices in the country, making the economy less vulnerable to global oil price uctuations. Local bioenergy production can also help rural communities, particularly in o -grid areas, gain access to reliable and clean energy.
7
Boosting Research, Development, and Innovation
e growth of the biomass sector will incentivise investment in research and development (R&D) to discover new technologies for e cient biomass conversion, improved bio-based products, and enhanced energy production techniques. is will promote technological advancements and innovation in Malaysia’s bio-economy.
Collaborations between universities, research institutes, and industry players can drive innovation in areas like second-generation biofuels, carbon capture from biomass, and the development of advanced materials from agricultural residues.
Biomass, particularly when used to create biochar or in sustainable farming practices, can sequester carbon, helping Malaysia reduce its greenhouse gas (GHG) emissions and meet its climate goals under the Paris Agreement. Bioenergy also produces lower GHG emissions compared to fossil fuels, contributing to Malaysia’s transition to a low-carbon economy.
As the global market increasingly demands sustainable products, Malaysia’s biomass sector can leverage certi cations like MSPO (Malaysian Sustainable Palm Oil) and Forest Stewardship Council (FSC) to ensure its products meet international sustainability standards. Certi ed bio-products can fetch higher prices in both domestic and export markets.
Malaysia's biomass potential can attract foreign direct investment (FDI) in bioenergy and bio-based products. International investors and multinational companies looking for renewable energy sources or sustainable materials are increasingly seeking countries with abundant biomass resources, advanced technologies, and supportive policies.
e government can leverage the biomass sector to establish public-private partnerships (PPPs) that drive investments in infrastructure, technology, and innovation. ese partnerships can foster industry growth, create jobs, and increase Malaysia’s competitiveness in the global bio-economy.
Climate Mitigation and
Foreign Direct Investment (FDI)
Photo credit: IOI Group
MPOB Laboratory in Bangi (Photo Credit: New Straits Times)
POMEVap Technology
A sustainable way of treating Palm Oil Mill Effluent (POME)
Summary
How the POMEVap System Benefits Palm Oil Mills and the Environment
Assists mills to tackle the POME problem.
Enables mills to operate in a sustainable and profitable way.
Recovers oil and produces solid by-products, which can be sold as organic fertiliser or animal feed. This generates additional income for the mill.
The condensate can be further treated and reused as process water in the mill.
Reduces land usage for POME treatment, allowing land to be used for other purposes.
Mitigates methane (GHG) emissions into the atmosphere.
One of the major challenges faced by palm oil millers is the treatment of palm oil mill effluent (POME), which is generated mainly from the palm fruit sterilisation and palm oil clarification processes. POME is a thick, brownish, colloidal mixture of water, oil, and fine suspended solids, and it is characterised by a very high biological oxygen demand (BOD). Owing to the high pollution load (high BOD) in POME, an efficient POME treatment method has become a pre-requisite for sustainable and successful operation of palm oil mills.
Traditional POME treatment involves pumping wastewater into a system of huge ponds, spanning an area of multiple football pitches. This method has several disadvantages: it requires a large area of land; methane (GHGgreenhouse gas) is produced and emitted to the atmosphere; and POME contains approximately 1% of palm oil, which goes to waste. Most existing methods of POME treatment are also unable to remove color effectively from the treated POME.
To address these challenges faced by mills, Alfa Laval has developed POMEVap technology to effectively manage the POME challenges. The POMEVap technology is based on Alfa Laval’s proven and reliable separation technologies consisting of Evaporator and Decanter.
AlfaFLash Evaporator in Operation for food industry
KEY PALM OIL MID & DOWNSTREAM STAKEHOLDERS: MINISTRY, ITS AGENCIES AND RELATED ASSOCIATIONS
MALAYSIA
Ministry of Plantation and Commodities (KPK) www.kpk.gov.my
Malaysia Biomass Industries Confederation (MBIC) http://www.biomass.org.my
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
