Ministry promotes downstream palm products to cut reliance on CPO exports

The Ministry of Plantation and Commodities is expanding efforts in specialised oleochemicals and palm-based nutraceuticals and pharmaceuticals to lessen dependence on crude palm oil (CPO) exports, Deputy Plantation and Commodities Minister Datuk Seri Huang Tiong Sii said.

Speaking in the Dewan Rakyat, Huang said developing higher-value downstream goods would help protect the domestic industry against fluctuations in global CPO prices. He was responding to questions from Datuk Shamshulkahar Mohd Deli (Barisan Nasional-Jempol).

An action plan already under way guides producers towards premium products used in cosmetics, personal care and specialised industrial applications. Huang said the Malaysian Palm Oil Board supports these efforts through its research and services.

For health-related products, the ministry is pursuing uses for palm oil components including tocotrienols (vitamin E) and carotene. Huang said exports of palm oil and related products had exceeded RM100 billion, and the ministry saw potential for domestically processed downstream goods to become a major contributor to export value.

The ministry aims to sustain strong growth in agri-commodity export value by 2030, with a larger contribution from higher-value downstream goods. Huang linked the approach to the National Agri-Commodity Policy 2021-2030, including product diversification, new applications, wider market access, research and technology adoption.

Other initiatives include encouraging palm-based fibres, biocomposite materials and biochemicals. Huang said the ministry is raising palm-based biofuel blending in domestic diesel and advancing waste-based second-generation fuels, including sustainable aviation fuel. It is also encouraging smallholders to participate in value-added production to broaden their economic opportunities and income potential.