Minister of Plantation and Commodities, Datuk Seri Johari Abdul Ghani at the POC 2025 press conference at Shangri La Hotel. NSTP/SAIFULLIZAN TAMADI
KUALA LUMPUR: The government has prioritised replanting oil palm trees to boost productivity without expanding land use, as increasing yield is crucial for the industry’s long-term sustainability.
However, progress in these efforts remains slow, according to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
“In 2024, Malaysia managed to replant 114,000 hectares, or 2.0 per cent of its total planted area, a decline from 2023, when replanting covered 132,000 hectares (2.3 per cent).
“This is below the recommended annual target of four to five per cent, which is approximately 285,000 hectares per year,” he said at the 36th Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2025) here today.
Johari noted that replanting is a critical issue that must be tackled immediately, as it directly impacts the industry in the long run.
He added that to secure future yields, this long-term commitment must begin now to ensure the continued growth and resilience of the sector.
“This is especially important as Malaysia has committed to ensuring that no further deforestation will take place due to palm oil cultivation,” he said.
While embarking on this focused effort to increase replanting rates, Johari said it is also pivotal to ensure that only high-quality planting material is used in this endeavour.
“As many of you know, smallholders remain a significant but vulnerable group in the palm oil industry due to a lack of scale.
“Thus, these individuals may be susceptible to dishonest practices by certain nurseries. For instance, instead of being sold the preferred Dura and Pisifera hybrid (Tenera), they may be given low-quality variants,” he noted.
Johari also said the government will continue to focus on protecting the interests of the industry as well as over 450,000 smallholders.
He noted that the government, through the Malaysian Palm Oil Board (MPOB), will conduct random checks to ensure that nurseries are selling the correct product. This is to ensure that only high-quality seeds are used in replanting efforts.
Meanwhile, Johari highlighted that the global palm oil industry experienced several positive developments in 2024.
The average crude palm oil (CPO) price rose by 9.7 per cent to RM4,179.50 per tonne compared to 2023 prices (RM3,809.50), reaching a peak average of RM5,119.50 per tonne in December 2024.
“We have seen a demand boom in this sector due to increasing affluence in developing countries and sizable youth populations, especially in Africa as well as South and Central Asia.
“Additionally, higher demand is also driven by Indonesia’s biodiesel mandate, where 25 per cent of the 48 million tonnes of CPO produced in Indonesia is utilised for biodiesel production,” he said.
On the postponement of the European Union Deforestation Regulation (EUDR) to Dec 30, 2025, Johari said the delay will allow plantation operators, smallholders, and businesses along the supply chain to be better prepared to meet the regulation’s due diligence requirements.
He added that the delay is well received.
“As I have communicated on multiple occasions, Malaysia stands ready to be a trusted supplier of sustainable and high-quality palm oil not only to our European partners but to all our importers worldwide.
“The large companies and estates that manage roughly 73 per cent of the palm oil planted area in Malaysia are well-positioned to comply with the regulations,” he noted.
Source: New Straits Times
