MEDIA RELEASE

JATA LATES

MEDIA STATEMENT
MPIC GRABS OPPORTUNITY TO PENETRATE BAKERY FATS
MARKET IN CHINA TO STRENGTHEN MALAYSIA’S PALM OIL
DOWNSTREAM SECTOR


1. THE encouraging outlook of China’s baking industry with baking fats (shortening) being one of the key raw materials augurs well for the downstream segments of Malaysia’s palm oil sector.


2. With baked goods such as cakes and bread becoming increasingly popular among the Chinese populace, so does the demand for palm oil-derived shortening and margarine which are both vital raw materials in the production of bakery-related products.


3. With the annual production of shortening in China far from meeting its growing domestic consumption demands which is escalating every year, the country has resorted to importing the main raw material from Indonesia and Malaysia whose export of shortening to China stood at 7,655 metric tonnes (MT) in 2021.


4. On the same note, China’s margarine market is also growing rapidly with an annual growth rate of 20%. The world’s most populous country which is also the second largest global economy
mainly imports margarine from Indonesia, with 650 MT coming from Malaysia in 2021, an increase of 10% from 590 MT in 2020.


5. Even though Malaysia’s ‘cake’ in China’s bakery industry is small at this moment, the world’s second largest palm oil producer is capable of expanding its market share in China’s bakery ingredient market with the right promotion and marketing strategies. With this is mind, home-grown shortening and margarine manufacturers should proactively weigh in on prospects of forging tie-ups with reputable bakery enterprises in China.


6. Although there are still sporadic lockdowns due to its ZeroCOVID-19 policy, the gradual re-opening of China’s borders to business travellers in the near future can serve as a good
opportunity for Malaysian bakery fats players to build business contacts, thus riding on this growing opportunity.


7. From 2017 to 2021, the market size of China’s bakery market has risen to 265.7 bil yuan (RM172.53 bil) from 187.7 bil yuan (RM121.88 bil) with an average compounded annual growth rate
(CAGR) of about 9% which is much higher than the growth rate of the global baking industry’s market size. It is expected that the market size of China’s baked food industry will reach 287.4 billion yuan (RM186.62 bil) in 2022.


8. Moreover, the registration of bakery-related companies in China has surged from 2,040 to 6,395 during the 2017-2021 period with an average CAGR of about 33%. In 1H 2022 alone, the number of registered Chinese bakery-related companies stood at 2,815. 2021 also saw the investment in China’s bakery industry topping 26 other industries with a total amount of 6.14 bil yuan (RM3.98 bil) which is attributable to post-COVID-19 recovery in economic activities.


9. To complement palm oil downstream players who are interested in solidifying their overseas business presence, I wish to highlight that the Ministry of Plantation Industries and Commodities (MPIC) has embarked on “The Global Movement to Champion the Goodness of Palm Oil” campaign as a platform to spark awareness about the high quality of Malaysian palm oil as well as to counter the various misinformation and false information levelled at our golden oil.


YB DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
21st SEPTEMBER 2022

JATA LATES

MEDIA STATEMENT
MALAYSIAN PALM OIL PENETRATES NEW MARKETS, SIGNALS
GREATER GLOBAL ACCEPTANCE


1. Malaysian palm oil has been able to penetrate new global markets and this shows that the commodity has gained greater international acceptance amid the Ministry's intense “Global Movement to Champion the Goodness of Palm Oil” campaign.


2. At least three countries which had never imported Malaysian palm oil in the past, namely Estonia, the Czech Republic, and Hungary, have started purchasing the commodity in recent months.


3. I am pleased with the development, which came amid the Ministry of Plantations Industries and Commodities ’(MPIC) aggressive efforts to market our palm oil globally and to debunk Western myths and propaganda.


4. Between Jan and July this year, Estonia imported 2,501 tonnes of Malaysian palm oil worth RM20.22 million, the Czech Republic (95 tonnes worth RM0.88 million, and Hungary (853 tonnes worth RM6.73 million).


5. While the volume and value of the imports from these countries are not as those from our major importers like India and Turkiye, these inroads were significant developments. Having one foot in the door allows us to further grow the Malaysian palm oil market share there in the long-run.


6. We acknowledge that our ability to tap into these new markets were partly attributed to the war in Ukraine which had resulted in disruptions to the supply of sunflower and rapeseed oils, which were traditionally used in these countries. But I believe this is a good start and that the Malaysian palm oil will not only continue to have a presence in these markets but grow rapidly there even after the war is over.


7. MPIC is also targeting to export to more non-traditional countries, particularly in the EU, and also to expand our market share among our traditional palm oil importing nations.


8. This is done through:
i. Strengthening existing major export markets, particularly India, China, Pakistan, and the EU, as well as to promote palm oil products more aggressively to penetrate new markets such as in Africa and Central Asian regions;
ii. Enhance Research and Development (R&D) activities in the production of new products as well as add value to downstream commodity products and;
iii. Enhancing better market access through bilateral free trade agreement (FTA)negotiations as well as multilateral or regional consultations


9. Feedback from many new markets show that they are impressed with Malaysian palm oil because of its higher productivity, versatility in food and non-food sectors and availability throughout the year.


10.We will continue to leverage on these strengths. This indicates the success of our “Global Movement to Champion the Goodness of Palm Oil” campaign. Previously, many, particularly in the EU, did not know about the advantages of using Malaysian palm oil due to decades of sustained smear campaigns.


11.But now, many are much more receptive to using Malaysian palm oil due to greater awareness by the Ministry and its agencies, including during international trade missions which I had led. Such efforts will not end here and MPIC is committed to continue promoting our palm oil and enhance its competitiveness globally.


YB DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
14 SEPTEMBER 2022

JATA LATES

MEDIA STATEMENT
IPOSC 2022 – A PLATFORM TO COUNTER WESTERN SMEAR
CAMPAIGNS


1. THE 7th International Palm Oil Sustainability Conference 2022 (IPOSC 2022), to be held on Sept 13 this year will be an important platform for Malaysia to counter smear campaigns by Western vested groups against our golden commodity.


2. The bi-annual conference, with this year's theme being “Shifting Sustainability Compliance into Sustainability Stewardship", will see top experts share their views on the recent developments and possible solutions on the current sustainability concerns and challenges.


3. Held since 2008, the conference will be held in Kuala Lumpur, after the last one was held online in 2020 due to the Covid-19 pandemic. The event is also part of MPIC's aggressive efforts to counter misinformation and false information on Malaysia’s golden oil via “The Global Movement to Champion the Goodness of Palm Oil” campaign.


4. IPOSC 2022 is intended as a targeted platform to update the stakeholders on pertinent and emerging sustainability developments in the industry. There is a crucial need to continue engaging and update the Malaysian palm oil industry, as well as global stakeholders on sustainability concerns. This includes Net Carbon Zero and decarbonisation efforts, green financing and Environmental, Social, and Governance (ESG) opportunities, as well as international deforestation-linked legislations, which will impact commodities like palm oil.


5. The Malaysian palm oil industry has been at the forefront of sustainability initiatives, which include sustainability certifications, sustainability reporting and ESG governance. Malaysia would like to continue positioning its palm oil industry as a leader in sustainability and ESG engagements.


6. The topics to be discussed at the IPOSC 2022 include the Net Zero and Decarbonisation Opportunities in the Palm Oil Industry Opportunities and constraints in the palm oil industry to achieve Net Zero and decarbonisation efforts, in line with the global commitment to achieve carbon neutrality as early as 2050.


7. Global Sustainability Trade Barriers and Accelerators Sustainability initiatives in the financial, consumer and biofuels sectors, which include the roles of Green Financing, ESG investments and low-ILUC (Indirect Land Use Change) risk biofuels certifications.


8. The Impacts of Deforestation-linked Legislations on the Palm Oil Industry Potential implication of new regulations in developed countries to curb the use and imports of deforestation-linked commodities, and the role of the revised the Malaysian Sustainable Palm Oil (MSPO) in addressing these concerns


9. Studies have consistently shown that palm oil is more ecologically friendly compared with other oil crops. For example, palm oil is a more efficient carbon sink and uses less fertilisers. It also produces more oil per hectare compared with rapeseed, soybean and sunflower.


10.The MPIC is hopeful that the conference will help Malaysia stamp its mark as a global leader in sustainable management of the palm oil industry. This will help refute baseless allegations from the West that our palm oil industry has caused untold damage to the ecology.


YB DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
8th SEPTEMBER 2022

JATA LATES

MEDIA STATEMENT
EFFORTS TO ACCELERATE EMPLOYMENT OF INDONESIAN WORKERS NEED
TO BE COORDINATED USING DIGITAL PLATFORMS


1. The Ministry of Plantation Industries and Commodities (MPIC) takes cognisance of the concerns raised by the Malaysia Productivity Corporation (MPC) in May this year that the Malaysian oil palm plantation sector could potentially be incurring losses of RM21 billion in 2021 and a further RM28 billion in 2022 if foreign workers are not brought into the country immediately.


2. The issue of the lack of foreign workers started following the closure of national borders due to the implementation of several stages of the Movement Control Order (MCO) when the Covid-19 pandemic peaked and worsened, affecting the harvesting process in farms across the country.


3. The Ministry at the same time also welcomes the agreement made by the Republic of Indonesia over the decision to re-allow the entry of its workers into Malaysia, which has been in effect since 1 August 2022, after withdrawing the restrictions before that, which were made due to concerns over issues related to rights of its (Indonesian) workers.


4. In order to simplify the process of hiring foreign workers, MPIC acknowledges that the process must be complete and efficient, hence we are all looking forward to the coordination process to be gradually switched to a fullydigitalised platform without any human interference possible.


5. For a long-term solution, MPIC encourages farm owners to provide retraining and skills improvement among local workers, in addition to practicing good labour management, which is important to keep foreign workers, employed.


6. A good labour force management policy will not only prevent foreign workers from absconding, it will also enable employers to circumvent the risk of forced labour and human trafficking which can ultimately be disruptive to their export business in the long run.


7. The Ministry will not compromise on issues related to forced labour in the country and Malaysia will continue to comply with the guidelines set in the International Labour Organization (ILO). In fact, MPIC will continue to support the National Action Plan on Forced Labour (NAPFL) which was developed in an effort to address and eradicate the issue of forced labour in the country.


8. The Ministry is confident that the noble efforts being undertaken at this time can help mobilize the 'Global Movement to Champion the Goodness of Palm Oil' campaign which, among other things, aims to explore and penetrate new markets and increase our country's palm oil exports.


YB DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
15th AUGUST 2022

JATA LATES

MEDIA STATEMENT
THE POTENTIAL OF MALAYSIA’S PALM OIL REMAINS INTACT DESPITE
SOFTENING CPO PRICES
________________________________________________________________________

1. EXPORT of Malaysian palm oil and palm oil-based products rose by 55.2% to RM67.48 billion between January and June this year from RM43.47 billion during the corresponding period in 2021. Of the value, 66.1% of the export earnings were contributed by palm oil which amounted to RM44.63 billion compared with only RM28.8 billion in the same period last year.


2. In terms of volume, the export of palm oil and palm oil-based products between January and June this year rose by 2.8% to 11.47 metric tonnes (MT) from 11.15 million MT a year ago. Malaysia recorded strong exports despite the drop in crude palm oil (CPO) production in the first half (1H) of 2022. Based on statistics by the Malaysian Palm Oil Board (MPOB), crude palm oil (CPO) production fell by 1.1% to 8.27 MT during the period compared with 8.36 metric tonnes during 1H 2021.


3. The fall is attributed to the dip in fresh fruit bunch (FFB) yield by 3.6% to 6.9 tonnes per hectare during the January-June 2022 period compared with 7.16 tonnes per hectare in the same period last year. Meanwhile, the sharp rise in export earnings is partly due to the spike in CPO prices, both domestically and abroad. Between January and June 2022, CPO prices rose by 55.9% to RM6,330 per MT from RM4,061.50 per MT during the same period in 2021.


4. According to the Department of Statistics Malaysia (DOSM), export earnings for palm oil and palm oil-based products between January and May this year rose to RM56.47 billion, or an increase of 58.8% compared with the five months in 2021.


5. The Ministry and I are pleased with the encouraging figures achieved during the first six months of 2022 as planters – both smallholders and listed plantation companies – were able to capitalise on the spike in CPO prices to generate higher revenue. Obviously, a surge in revenue that translates into better earnings is most welcomed as this would also contribute toward various sources of taxation that will ultimately enable the Keluarga Malaysia Government to carry out relevant socio-economic programmes that are deemed vital to expedite Malaysia’s economic recovery from the economic fallout following the COVID-19 pandemic.


6. It is also gratifying to note that Malaysia's golden crop has gained wide global acceptance, as demonstrated by the encouraging export during 1H 2022. In this respect, I wish to thank my colleagues at the MPIC and those spread across related agencies for their aggressive efforts in promoting Malaysian palm oil, particularly during my various trade missions abroad.


7. We are confident that the prospects for Malaysian palm oil will remain bright during 2H 2022. This is partly due to greater acceptance of the commodity globally, including that from non-traditional markets. We attribute this to the success of MPIC's campaign "The Global Movement to Champion the Goodness of Palm Oil," which is intended to counter misinformation and false information on our number one commodity.


DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
09 AUGUST 2022