By Danni Haizal Danial Donald
KUALA LUMPUR, Sept 9 (Bernama) — The 13th Malaysia Plan (13MP) offers a vital platform to accelerate Malaysia’s transition towards a climate-resilient, innovation-driven future, securing the country’s position as a global leader in sustainable palm oil production, says the Malaysian Palm Oil Board (MPOB)
Viewing the five-year road map as comprehensive and forward-looking, its director general Datuk Dr Ahmad Parveez Ghulam Kadir said it aligns closely with the board’s mission to build a resilient, sustainable and competitive palm oil industry.
“We welcome the 13MP’s strong commitment to revitalising and modernising Malaysia’s palm oil sector and is committed to collaborate closely with the government, smallholders and industry stakeholders to ensure the successful implementation of these initiatives,” he told Bernama recently.
Ahmad Parveez said the board also lauded the government as it emphasises modernisation through mechanisation, automation as well as research and development (R&D).
“The focus on advanced technologies such as artificial intelligence (AI), robotics, the Internet of Things (IoT), and precision farming is crucial to boosting yields, improving operational efficiency, and transitioning the sector from labour-intensive to capital-intensive.
“These initiatives will help alleviate labour shortages, reduce dependency on foreign workers and strengthen Malaysia’s global competitiveness,” he said.
Strengthening MSPO Certification
The Malaysian Sustainable Palm Oil (MSPO) certification standard has made significant progress, but to remain relevant and competitive globally, it must continue evolving.
Ahmad Parveez said key priorities for improvement include aligning MSPO with the world’s most stringent sustainability requirements, such as deforestation-free supply chains, full traceability, ethical labour practices and biodiversity protection.
“The enhanced MSPO 2.0 aligned with international benchmarks, positions Malaysian palm oil as a high-quality, sustainable and ethical product.
“Strengthening traceability is also crucial, through MSPO eTrace 2.0, alongside Sawit Intelligent Management System (SIMS) and GeoSawit, which offer end-to-end supply chain tracking and geo-mapping, reinforcing transparency and appealing to ESG-conscious buyers,” he said.
Moreover, to ensure the certification’s longevity and effectiveness, continuous alignment with evolving market demands is essential, as this could be achieved by leveraging advanced technologies such as the IoT, blockchain, and big data analytics to enhance monitoring and verification, said Ahmad Parveez.
“Equally important is increasing smallholder participation by simplifying compliance, providing training and embedding stronger environmental, social and governance (ESG) principles throughout the supply chain.
“Regular reviews and active promotion of MSPO in international markets, coupled with strong industry commitment and enforcement, will further safeguard Malaysia’s reputation as a responsible palm oil producer and ensure the certification remains effective in the long term,” he said.
Replanting Programme as Game Changer
Replanting rates in Malaysia have remained relatively low, averaging around 2.1 per cent, which is below the optimal target of four per cent, with replanting rates among independent smallholders being particularly low at 0.5 per cent between 2020 and 2024.
Therefore, Ahmad Parveez said the government’s RM1.4 billion allocation over five years, specifically aimed at independent smallholders, is a game changer for the palm oil industry.
He said that through financial incentives such as MPOB’s Tanam Semula Pekebun Kecil Sawit 2.0 (TSPKS 2.0) scheme, it addresses key challenges faced by smallholders like ageing palms and limited access to replanting financing.
“By enabling independent smallholders to replace ageing palms with higher-yielding and more resilient planting materials, the programme will boost productivity and increase fresh fruit bunch yields.
“This, in turn, strengthens Malaysia’s overall palm oil supply base, ensuring a more stable and sustainable production volume, and directly contributes to higher-quality and greater volumes of palm oil output,” he noted.
Ultimately, this initiative is a vital investment in the backbone of the country’s palm oil industry, driving sustainable growth, improving competitiveness, and boosting palm oil exports on the global stage.
Maximising Trade and ESG Compliance
Furthermore, MPOB urged the government to increase targeted export promotions supported by structured market trials and robust government-to-government engagement.
“Leveraging on free trade agreements and expanding into emerging markets across South America, Africa, the Middle East, and Eastern Europe will be key to sustaining export growth.
“Regional cooperation platforms such as Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP EAGA) should also be maximised,” he said.
According to him, building a skilled workforce with expertise in ESG compliance, advanced technologies, and market-specific requirements is critical for maintaining Malaysia’s position as a trusted, competitive and sustainable global palm oil supplier.
“Collectively, focusing on these priority areas will enable the palm oil sector to become more resilient, sustainable and competitive, ensuring it continues to make significant contributions to Malaysia’s economy and global food security under the 13MP framework,” he added.
— BERNAMA
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