Business

M’sia unaffected by Belgium’s palm oil ban

Country’s global market share still large, says commodities minister

Updated 5 years ago · Published on 18 Apr 2021 5:50PM

M’sia unaffected by Belgium’s palm oil ban
Datuk Mohd Khairuddin Aman Razali says Afghanistan has put in a request to increase its imports of Malaysian oil palm from 75,000 tonnes, to as much as 150,000 tonnes. – File pic, April 18, 2021

KUALA PILAH – Malaysia is not affected by Belgium’s decision to ban the use of palm oil as a biofuel in the country starting next year, said Plantation Industries and Commodities Minister Datuk Mohd Khairuddin Aman Razali.

He said this is because the country’s palm oil market is still quite large and that there are many other countries importing Malaysian palm oil; noting that the government is also actively marketing the products in Africa and the Middle East.

“Recently, Afghanistan has also asked us to increase oil palm exports to the country, from the current 75,000 tonnes to up to 150,000 tonnes, so we are confident that our oil palm market is still quite large and will not be affected (by the ban).

“At the regional level, the increase is even more significant – we must remember that Malaysian palm oil is of premium quality and different from other countries’ palm oil,” he told reporters after presenting donations to smallholders here today. 

Khairuddin said last year, the total export value of oil palm to Belgium amounted to RM207 million, while the total export value to the country as of February stood at RM36 million.

On April 13, the media reported that biofuels made from palm oil and soybean will no longer be allowed in the Belgian market starting next year as part of its efforts to reduce deforestation globally. 

On another note, Khairuddin said the Malaysian Agricommodity Regional Office in Jeddah, Saudi Arabia – which comprises the Malaysian Palm Oil Council, Malaysian Rubber Council (MRC) and the Malaysian Timber Council – is expected to commence operations next month. 

He said the regional office will act as a hub to expand the country’s agri-commodity market in the Middle East which has a vast market and large operations.

“We are currently in the process of managing the office as well as the placement of officers, God willing it will start operating in May after the Hari Raya Aidilfitri,” he said.

Earlier on, the minister had distributed a total of RM10,000 in cash donations on behalf of the MRC to 100  rubber smallholders from the B40 income group, hailing from Senaling, Juasseh, Johol, Pilah and Seri Menanti. – Bernama, April 18, 2021

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