(July 30): Malaysia’s palm oil exports to the United States (US) increased by 51.8% to 93,000 metric tonnes from January to May 2025, compared to 61,000 metric tonnes during the same period last year.

The Ministry of Plantation and Commodities (KPK) said that 65% of the nation’s palm oil exports to the US in 2024 were certified sustainable products used in high-value goods, while another 19% consisted of palm stearin, a key ingredient in the food and personal care industries.

Although the US is not Malaysia’s main export market for palm oil, the ministry emphasised that the government is paying attention to the 25% tariff imposed by the US on Malaysian goods, which takes effect on Aug 1, 2025, to ensure that the country’s market position is not adversely affected.

“The ministry is always vigilant and proactive in monitoring developments in international trade policies to safeguard the country’s palm oil exports,” KPK said in a written response posted on the Parliament’s website on Wednesday.

KPK was responding to Datuk Siti Aminah Aching (BN-Beaufort), who inquired about the impact of the 25% tariff imposed by the US on Malaysia, its effect on global demand for Malaysian palm oil, and the ministry’s efforts to mitigate any negative consequences on exports.

The ministry highlighted that together with the Ministry of Investment, Trade and Industry (Miti), it is continuing to engage in ongoing negotiations with the US to ensure fair, open and mutually beneficial trade relations.

It added that various integrated initiatives are underway to ensure that Malaysia’s palm oil exports remain unaffected and sustainable.

“These include promoting the transformation of the palm oil sector toward high-technology downstream products such as oleochemicals, processed food ingredients and biofuels,” it said.

KPK said it is strengthening efforts to implement the Malaysian Sustainable Palm Oil (MSPO) 2.0 certification to ensure Malaysian palm oil meets international standards, particularly in environmental, social and governance (ESG) aspects.

“The introduction of the Sawit Intelligent Management System (SIMS) enables full traceability at the plantation level for all palm oil produced,” it said.

KPK said that the signing of two new free trade agreements (FTAs), the Malaysia-UAE Comprehensive Economic Partnership Agreement (Jan 14, 2025) and the Malaysia-EFTA Economic Partnership Agreement (MEEPA) (June 23, 2025), allows for broader market access for downstream palm oil products, helps reduce tariffs, overcome non-tariff barriers and encourage foreign investment in the commodity sector.

“Overall, the comprehensive measures taken by KPK and related agencies aim to ensure that the country’s palm oil industry remains competitive, boosts exports, and maintains Malaysia’s reputation as a sustainable, transparent, and ethical palm oil producer.

“This is crucial to continue attracting interest from developed countries like the US to import Malaysian palm oil,” it added.

Source: The Edge Malaysia