1. THE Ministry of Plantation Industries and Commodities (MPIC) will step up efforts to promote the use of palm kernel waste as animal feed to ensure Malaysia has sustainable supply of chickens in the long run.

2. As we know, one of the reasons why chicken prices sometimes soar is due to the high price of chicken feed. It has been reported that chicken feed had gone up from RM500 per tonne to RM1,900 per tonne in some cases.

3. As a result, chickens were being fed less, causing the livestock to grow slower than normal, and in the process restricting the supply of the birds. Malaysia imports most of its chicken feed, mostly made of grain like corn and soybean. These items are facing worldwide shortage due to the war in Ukraine and uncertain weather patterns.

4. However, Malaysia's oil palm plantations produce huge supplies of palm kernel waste. Past researches have shown that feeding fermented palm kernel cake (PKC) and high dietary fat to broilers, can be a good substitute for the imported feed which almost all commercial chicken farms use today.

5. The MPIC will also hold discussions with other stakeholders to review our export policy on PKC in favour of local broilers. Right now, a lot of our PKC is exported for the European cattle industry.

6. The Ministry will also work with relevant agencies, government-linked companies (GLCs) and State Governments to urgently look into how it can quickly ensure the availability of palm kernel waste as animal feed for the Malaysian poultry industry.

7. Additionally, the MPIC will also be working closely with research institutes such as public universities to look into ways to enhance the quality of PKC to make it the preferred choice for chicken breeders. This includes ways of reducing the fibre content in the PKC.

8. MPIC is committed to playing its part to help reduce Malaysia’s dependence on imported livestock feed, in the spirit of Keluarga Malaysia. At the end of the day, it's about putting the interests of the people first and The Ministry is determined to ensure the commodity sectors consistently contribute to the country’s economic development.

31 MAY 2022



1. The UK and Malaysia have enjoyed 65 years of diplomatic relations since the Federation of Malaya’s independence in 1957. This year also marked the 70th year of Her Majesty Queen Elizabeth II acceded to the throne of the British monarch. As we are all aware, Her Majesty The Queen is the first British monarch to celebrate a Platinum Jubilee, marking 70 years of service to the people of the United Kingdom, the Realms and the Commonwealth.

2. Our partnership is founded firmly on common values :

• Respect for the independence, sovereignty and territorial integrity of all nations
• Mutual respect and benefit
• A commitment to rules-based trade and to low-carbon development to tackle
climate change
• Respect and promotion of the rule of law and human rights
• Advancement of international law and multilateralism and the promotion of
peace, security and prosperity in line with the United Nations and
Commonwealth Charters

3. The UK is Malaysia 19th largest trading partner. In 2021, the total trade of goods and services for both countries accounted for £5.2 billion. Malaysian export of agricultural commodities (Palm Oil, Rubber, Timber, Cocoa and Pepper) contributed to 14% of the total trade, valued at £734 million. This agriculture trade export has shown an increase of 17% compared to 2020, which is £628 million.

4. As the UK has shown interest in ensuring that agricultural commodities entering the UK are sustainably sourced, Malaysia has been working closely with the UK to ensure that the voice of producing countries like Malaysia are heard and any new laws to be enacted that may affect the trade exchanges are in line with the spirit of the United Nations Sustainable Development Goals (UNSDG) as a whole – economically, socially and environmentally.

5. We also showed our support during UK’s Presidency of the 26th Conference of Parties (COP 26) last year and contributed to the Glasgow Declaration on Forests and Land used. In relation to that, we are committed to strengthening our cooperation through the Forest, Agriculture and Commodities Trade Dialogue (FACT Dialogue) where we were tasked as the co-facilitators for the Smallholder Support Working Group. Malaysia’s Sustainability Efforts in Commodities

6. Sustainability has always been the central theme of Malaysia’s economic policy direction throughout the years from the National Economic Policy (NEP) in the 1970s, New Economic Model (NEM) in 2009, Vision 2020 and the latest Shared Prosperity Vision 2030.

7. Sustainability has always been associated with deforestation. However, it is crucial to note that sustainability is more than just forests. The United Nations'definition of sustainability is clear: social and economic sustainability is on an equal plane with environmental. So, the Malaysian Government is also focused on supporting small farmers and their economic communities. Among the initiatives includes developing infrastructure, granting financial assistance where needed, and protecting the ability of small farmers to earn a living.

8. Our sustainability practices recognises how these issues are interconnected and requires a systematic approach. MPIC stands guided by the action plans of the UNSDGs blueprint, particularly on:

• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 15 (Life on Land)
• Goal 17 (Partnerships to achieve the Goal)

9. Taking an example from the palm oil industry, I want to stress that the Malaysian palm oil industry now focuses on improving productivity and yields rather than expanding land for cultivation. Forest protection is a priority for our government. Malaysia also assures the world that it will not retreat from its 1992 Earth Summit pledge on sustainable development – it will keep at least 50% of its total land area under permanent forest. Malaysia has also committed to plant '1 million forest trees species within the next ten (10) years'.

10.Another important measure taken by the Malaysian Government through the Ministry of Plantation Industries and Commodities (MPIC) is the introduction of the Malaysian Sustainable Palm Oil Certification (MSPO) in 2015, which was made mandatory starting from January 2020. The MSPO Certification Scheme ensures that Malaysian palm oil is sustainably produced and safe for consumption. It also seeks to reduce the industry's social and environmental impacts and help independent smallholders certify their palm oil for the export market. In addition, the certification ensures the country's palm oil industry complies with international sustainability requirements encompassing the whole supply chain, from growers and millers to traders and retailers.

11.MPIC through the National Agri-commodity’s Strategic Plan is also committed to ensure that other commodities will have their own certification systems in the future. Circular Economy

12.Integrating a circular economy into the production of Agri-commodities, particularly palm oil, is an effective solution to optimise the usage of resources (raw materials) and minimise wastage from production, emissions and energy inefficiency.

13.This is done by reducing, reusing and recycling materials commonly underutilised in the current linear economy. The model adopts a circular pathway which utilises usable materials after the first processing cycle by reintroducing it back into the second processing cycle of similar or different products as secondary raw materials. Ultimately, this process will translate into optimising raw materials by continually adding value to its users along the supply chain.

14.Production of palm oil results in multiple types of secondary products (solid and liquid) in high volumes, such as Palm Oil Mill Effluent (POME), Empty Fruit Bunch (EFB), decanter cake and palm pressed fibres. These biomass products can be further utilised directly to produce new value-added products or as alternative energy sources to fuel the production facility.

15.The incorporation of this model will not only address the environmental aspect plaguing the palm oil industry but also the economic concern of the supplies of primary raw materials. MPIC is also planning to expend the circular economy technology to other Agri-commodities such as rubber, pepper and Kenaf to ensure a more effective and sustainable waste management.

16.As the industry embarks on reusing its waste, the reliance on primary sources will diminish. This contributes to reducing deforestation and lowering our carbon footprint. Introducing new usages of secondary products will also bring about new economic opportunities. Furthermore, it could significantly disrupt the current energy industry by increasing the accessibility to biomass as an energy alternative, in tandem with the world's commitment to decarbonising its economy by reducing its reliance on fossil fuels.

17.I wish to highlight that Malaysia has been at the forefront of promoting palm oil and palm biomass in the manufacturing sector. The National Biomass Strategy 2020 (NBS2020) set a target to turn palm biomass into higher-value products that will create an incremental gross national income (GNI) of £5.5 billion (RM30 billion) and 66,000 new jobs while attracting £4.6 billion (RM25 billion) in investment and reducing carbon emissions by 12%.

18.The circular economy model is undoubtedly the way forward for Malaysia’s Agri-commodity sustainable and ethical sourcing. Despite the challenges of integrating, it into the current linear model, the focus would be to create more value. There is much value extracted from reusing and recycling these raw materials.

CLOSING REMARKS : Malaysia – UK Partnership Opportunities

19.Malaysia opens its doors to work with international parties including government agencies, academicians, research institutes, industry players and businesses to ensure the Agri-commodity industry continues to develop progressively and sustainably.

20..Looking at sustainability and circular economy, we realise that we have to work with many stakeholders and potential tech players to harness the latest technology to further explore the full potential of Agri-commodities production. There is a need for better facilities, more advanced technologies and substantial investments into the industry to ensure a competitive edge against
traditional practices.

21.I hope this forum can further look into the possible opportunities for partnerships between our countries and strengthening both countries' national economic agendas.

22.On that note, I wish all delegates and participants of the Malaysia – British Partnership Forum a fruitful discussion. *The keynote address was delivered during the Malaysian British Partnership, “65 Years and Beyond” held at The Coledonian Club, 9 Halkin St, London on 17th May 2022

25 MAY 2022



With regard to the latest move by our neighbour Indonesia who is also the world’s largest palm oil producer to lift the ban on palm oil exports effective May 23, the Ministry of Plantation Industries and Commodities (MPIC) wishes to urge all Malaysian oil palm growers – both plantation firms and smallholders alike – not to be unduly concerned with the recent development.

While a knee jerk correction in palm oil price is inevitable given such a move will somehow ease concerns over vegetable oil supply, MPIC does not expect a big downward adjustment to CPO prices as the market is well aware that this ban was always going to be temporary.

Moreover, the recent weakening of crude palm oil (CPO) prices could have already factored in this possibility. Market analysts expect Malaysian planters to be the largest winners on the long run as they are able to sell their CPO at high spot prices which should translate into higher profit margin in 2Q 2022 coupled with higher production year-on-year (y-o-y) and quarter-on-quarter (q-o-q).

While the export ban lifting is a big relief to Indonesia planters, they have certainly missed out on the high CPO price period (February-April 2022) when Indonesia palm oil prices were trading at a larger discount to Malaysia with all the export control policies put in place since late-January 2022.


Indonesia’s policies could well work to Malaysia’s advantage as the world’s second largest palm oil producer, given this would enable it to emerge a dominant supplier to India which is the world’s top buyer of the edible oil. The combination of Malaysia’s lower export taxes and the Indonesian ban may mean Indonesia’s share of palm oil exports to India will fall to 35% in the current marketing year ending on Oct 31 from more than 75% a decade ago, according to an estimate from the Solvent Extractors' Association of India (SEA), a vegetable oil trade body.

In the first five months of the 2021/22 marketing year, India bought 1.47 million tonnes of Malaysian palm oil compared to 982,123 tonnes from Indonesia, data compiled by SEA showed. Trader estimates for May show India imported around 570,000 tonnes of palm oil with 290,000 from Malaysia and 240,000 from Indonesia.

Above all else, MPIC believes that CPO prices will remain at elevated levels going forward given the output uncertainties on major oilseeds (such as soybean, corn, rapeseed and sunflower seed) either due to geopolitical tensions or unfavourable weather.

Lastly, even as Indonesia would resume its palm oil exports on May 23 (Monday) – barely a month after imposing the ban on April 28 – it may not end there given palm oil prices in its domestic market have yet to come down to the desired level (in fact, lifting of the ban could result in a recurrence of domestic shortage in the country).

Given that the medium- to long-term outlook of the Malaysian palm oil industry remains bright, MPIC wishes to call on all Malaysian oil palm growers to join hands in helping to make the Malaysian Palm Oil Full of Goodness campaign which seeks to counter various misperceptions with regard to Malaysian palm oil a global success.

22 MAY 2022



The fact that palm oil stockpile increased for the first time since October 2021 by 11.5% month-on-month (mom) to 1.64 million tonnes in April 2022 driven by higher output (+3.6% to 1.46 million tonnes) and weaker exports (-17.7% to 1.06 million tonnes) should not be a cause for concern.

This is because palm oil stockpile will likely dip in May 2022 on the back of seasonally lower crude palm oil (CPO) production (arising from the Ramadhan month) and stronger exports (following the Indonesian Government’s recent move to widen its export ban on raw materials for cooking oil).

However, Indonesia announced yesterday (May 19) that it has decided to lift its palm oil export ban from May 23 (Monday) following improvements in the domestic cooking oil supply situation and as Jakarta considers the welfare of 17 million workers in the palm oil industry.

Meanwhile, exports were dragged by lower exports to China (-50.8%), European Union (EU) (-23.2%) and Pakistan (-90.3%) due to several factors including (i) strict COVID-19 lockdowns which hampered palm oil shipments to China, and (ii) demand destruction as a result of high prices.

Nevertheless, preliminary data from AmSpec Agriculture Malaysia indicated that palm oil shipments alone have surged by 40.32% during the first 10 days of May on account of Indonesia’s absence from the global export market, a weak ringgit and widening palm discounts to bean oil.


Recall that CPO prices surged past the RM7,000/tonne mark to hit its period peak of RM7,516/tonne following news that Indonesia had banned palm oil exports from April 28. The ban would only be lifted if the bulk cooking oil price comes down to 14,000 rupiah/litre across Indonesia (as of May 6, the average local price of cooking oil has dropped to 17,200 rupiah/litre from around 26,000 rupiah/litre).

Given Indonesia's reliance on palm oil exports and how a prolonged ban could seriously damage Indonesia's economy, the country as expected, has rescinded the decision to ban its palm oil exports. As it is, the MPIC wishes to put on record that it is in the midst of discussing with the Finance Ministry to look into the viability of slashing Malaysia’s export tax of palm oil to 4%-6% from the current 8% while at the same time to slow down the implementation of Malaysia’s biodiesel mandate to help meet the global demand amid an edible oil shortage.

This proposed temporary cut is pending a decision and We believe that Malaysian exporters are likely to be clear winners in the short term as global buyers will source for Malaysian palm oil.
Nevertheless, the MPIC urges industry players to focus closely on market variables that are capable to spark price volatility.

In the list of these variables are:

(i) the export policy of Indonesia
(ii) the recovery of palm oil production in Malaysia;
(iii) the adjustment of biodiesel policies in various countries;
(iv) progress of the Russia-Ukraine conflict; and
(v) the weather in both the US and South America.


On broader terms, the soft exports in April could be misleading as we believe international demand for edible oils which include palm oil is far from weak. April prices may be lower than March but remained at unprecedented levels. Year-to-date (YTD), CPO prices have averaged circa RM6,300/tonne which is significantly higher than the RM4,300/tonne average as projected by market analysts for 2022.

Looking ahead, CPO prices are likely to consolidate downward due to pending uptrend in monthly fresh fruit bunches (FFB) production rather than poor demand. Nevertheless, CPO prices should stay elevated due to the following factors:

•Tight supply: Supply of edible oils which are competing with palm oil is tight across the world. Henceforth, prices of vegetable oils such as soybean, rapeseed and sunflower oils are also strong. Together with seasonally stronger palm oil production in 2H 2022, edible oils and fats supply tightness should ease by 4Q 2022 but not by much. The prospect of a recovery is more likely in 2023; hence, palm oil prices may stay elevated till about mid-2023.

•Robust market: Despite some “demand destruction” due to very high prices, the overall market for palm oil is expected to remain robust. Indonesia’s challenge to meet domestic requirement indicate the strength of the international market for palm oil.

•Uptake from China: A key market for palm oil, China is poised to increase its palm oil demand later in the year as its economy is only gradually re-opening from the COVID-19 pandemic. Similarly, demand from the EU is likely to rise following the disruption to its traditional supply of sunflower and rapeseed oil from Ukraine and Russia.

•Oil price hike: The Russia-Ukraine conflict has also pushed up the prices of hydrocarbon fuels, creating a latent or “hidden” demand for biofuels if vegetable oil prices were to fall sufficiently.
The Ministry will continue to ensure that the palm oil industry, which is the country's main commodity, continues to contribute to national economic growth, thus benefiting all, especially smallholders and industry players.

The Ministry will continue to monitor the current situation involving Indonesia’s policy changes to ensure that the palm oil industry, which is the country's main commodity, continues to contribute to the country's economic growth, thus benefiting all, especially smallholders and industry players.

20 MAY 2022




Washington D.C - 15 May 2022. I welcome the decision by the US Customs and Borders Protection (CBP) to set up a working committee with the Malaysian Government to address the issue of alleged forced labour. This is a move in the right direction to resolve this long outstanding issue that has unfairly plagued local industries, in particular palm oil and rubber. 

In the spirit of Keluarga Malaysia, I would like to thank Human Resources Minister YB Datuk Seri M. Saravanan for securing the commitment from the CBP to set up this working committee during his current trip to the US. During my working visit to the US from May 11 to 16, the ministry will be following this up closer with the relevant US authorities to urgently resolve it. I have several key meetings lined up and I am confident an amicable resolution is within reach in the near term.

As I have mentioned before, most of the claims of forced labour made by NGOs and other interest groups were not verified by the US authorities, which then resulted in Malaysian palm oil and palm oil products being banned. This is grossly unfair to our local industry.

The Malaysian Government has taken various initiatives to monitor and prevent forced labour. Malaysia has pledged to eradicate forced labour and child labour through ratification of ILO Fundamental Convention no. 29 (Forced Labour) and Convention no.182 (Worst Forms of Child Labour) respectively. In addition, Malaysia has ratified Convention no.98 (Collective Bargaining), Convention no.100 (Equal Remuneration) and Convention no.138 (Minimum Age) and Convention no.131 (Minimum Wage). These conventions provide useful guidance in
determining Malaysia's obligations with respect to the protection of the rights of foreign workers.

At present, Malaysia is also embarking on the BRIDGE Project with ILO, aimed at supporting government efforts at combating forced labour under Protocol 29 (Supplementary Protocol to Convention 29) as a guidance on measures to eliminate all areas of forced labour (prevention, protection of victims and access to justice) Malaysia has conducted a comprehensive study on The Labour Situation in Palm Oil Plantation Sector in Malaysia in 2018. The findings of the study have been sent to the United States Department of Labour (US DOL) and released as a public document.

On 19 November 2021, the Government of Malaysia had agreed to ratify the ILO Protocol 29 which is the Protocol of 2014 to the Forced Labour Convention, 1930, as well as Malaysia's participation as a Pathfinder country under the SDG Alliance 8.7 as part of the ongoing effort to eradicate forced labour in Malaysia. The Government through Ministry will continue to ensure that the country's commodity industry, which is one of the main contributors to the country's economic recovery after Covid-19, will continue to be protected from misleading propaganda from various quarters. I would also like to call on all Malaysians to join MPIC in their efforts to oppose the anti-palm oil campaign and continue to promote the benefits of Malaysian palm oil.