Minister of Plantations and Commodities Datuk Seri Johari Abdul Ghani spoke at the Malaysian Palm Oil Board (MPOB) Excellence Awards 2025 at the MPOB Headquarters today.
BANGI: The country's palm oil industry is expected to remain stable and competitive next year, driven by continuous research and development (R&D) efforts, improved yields and sustainable practices in line with global market needs.
Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani (picture) said the direction of the palm oil industry in 2026 would no longer depend on opening new areas in line with Malaysia's commitment to stop deforestation activities, but rather focus on increasing productivity in existing areas of about 5.7 million hectares.
"We are no longer opening new areas. The world today wants sustainable palm oil. So our focus is on increasing yields through the use of quality planting materials, good agricultural practices and technology that can reduce dependence on foreign workers," he said.
He said this to the media after attending the Malaysian Palm Oil Board (MPOB) Excellence Awards 2025 here today.
Johari said the strategy would continue to be supported by R&D to explore new applications of palm oil, not only for the food sector but also for non-food products, thus expanding the use and added value of the commodity globally.
Commenting on the role of MPOB, he said the agency had contributed significantly to the development of the country's palm oil industry, especially through consistent and high-impact R&D for more than two decades.
"In a period of about 25 years, more than 700 R&D projects have been carried out and around 200 of them have been successfully commercialized. This has drastically increased the use of palm oil, including in food and non-food products in many countries," he said.
According to him, the continuation of R&D is very important to ensure that the palm oil industry continues to grow, with applications that are constantly increasing and can be commercialized effectively.
Johari said as a result of these efforts, the country's palm oil exports have reached around RM95 billion annually from 2022 to 2024, in addition to opening up vast economic opportunities for local people not only in terms of employment but also for entrepreneurship.
Regarding the medium and long-term direction, he stressed that replanting is among the main agendas that must be implemented in stages to ensure the sustainability of yields.
“Replanting cannot be done all at once. Whether it is a large company or a smallholder, it must be done in stages so that income can still be generated while the new trees take three to four years to bear fruit,” he said.
He said the government has provided an annual allocation of around RM100 million to help smallholders freely carry out replanting, to ensure that their yields do not decline and that family welfare is maintained.
Meanwhile, commenting on whether increased production will reduce prices, he said the price of crude palm oil depends largely on the level of demand and the diversity of applications.
“If the use is only limited to cooking oil, the price has a certain limit. But as applications become wider, demand increases and the price remains strong and currently the price is around RM4,000 per tonne, compared to RM1,800 to RM2,000 per tonne previously,” he said.
He said the situation showed that support for the country's palm oil industry remained strong, driven by a sustainable demand base and added value through continuous innovation.
