KUALA LUMPUR, Aug 21 — The Plantation and Commodities Ministry (KPK) expects the direct impact of the United States (US) market restrictions on the Malaysian palm oil industry to be minimal.
It said the main factor contributing to this is the specific characteristics and functions of Malaysian palm oil, which has been certified sustainable through the Malaysian Sustainable Palm Oil (MSPO) certification, making it difficult to replace with other oils in the global market.
“Therefore, the level of industry dependence in the US on sustainable palm-based materials is high,” KPK said on the Parliament website.
It was responding to Kuala Krau MP Kamal Ashaari's query on the government’s short- and medium-term plan for the palm oil industry to adapt to the US market.
In 2024, Malaysia exported 191,231 tonnes of palm oil to the US. This value was only 1.1 per cent of the country’s total palm oil exports for the year.
KPK added that the government remains committed to providing various forms of aid, particularly for smallholders.
Among these are the Oil Palm Smallholders Replanting Financing Incentive Programme, as well as special grants, such as the supply of products for the control of ganoderma stem rot disease, to assist smallholders.
“This type of assistance can help to reduce the impact on smallholders in Malaysia from changes in international trade policies,” it said.
