Malaysia, as the world’s second-largest palm oil producer, is proactively advancing sustainability in the palm oil sector. The country recognises the growing global emphasis on environmental responsibility and aims to champion sustainable practices.
During the 36th Palm and Lauric Oils Price Outlook Conference and Exhibition 2025, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani highlighted Malaysia’s leadership in sustainable palm oil through the following initiatives:
Industry-wide Compliance
The government is promoting sustainability compliance among both private sector players, who manage 4.2 million hectares, and smallholders, who manage 1.5 million hectares. Together, they oversee 5.7 million hectares of palm oil plantations.
No Further Deforestation
Malaysia has committed to preventing any additional deforestation for palm oil cultivation, aligning with international regulations such as the European Union Deforestation Regulation (EUDR).
Ambitious Sustainability Targets
The country has set several environmental goals, including achieving net-zero greenhouse gas emissions by 2050, reducing carbon intensity by 45% by 2030 relative to GDP, lowering methane emissions by 30% by 2030, and maintaining forest cover at a minimum of 50%.
Focus on Yield Improvement
Rather than expanding land use, Malaysia emphasises increasing yield to boost production sustainably.
International Compliance
By adhering to global sustainability standards, such as the EUDR and the Roundtable on Sustainable Palm Oil (RSPO), Malaysia aims to secure its position in the international market and ensure the continued exportability of its palm oil.
Malaysia’s proactive stance on sustainability, particularly through initiatives like the Malaysian Sustainable Palm Oil (MSPO) certification and adherence to international standards, positions it as a leader in sustainable palm oil production, enhancing its global market competitiveness and environmental stewardship.
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