Malaysia

Not feasible to mirror Indonesia’s palm oil ‘domesticisation’ strategy - MPOB Chairman

Indonesia’s larger population allows it to absorb more palm oil locally, effectively reducing nearly four million tonnes of palm oil from the global market

Updated 10 months ago · Published on 21 Nov 2025 9:55AM

Not feasible to mirror Indonesia’s palm oil ‘domesticisation’ strategy - MPOB Chairman
Malaysia’s smaller domestic population means the country relies more on exports for its palm oil market, making a similar strategy impractical - November 21, 2025

MALAYSIA cannot adopt Indonesia’s approach of increasing domestic palm oil consumption to counter Western anti-palm oil campaigns, as the two countries face fundamentally different market dynamics, the Malaysian Palm Oil Board (MPOB) chairman has said.

Datuk Mohamad Helmy Othman Basha explained that Indonesia’s larger population allows it to absorb more palm oil locally, effectively reducing nearly four million tonnes of palm oil from the global market when blended into domestic diesel.

“When the West heavily criticises Indonesian palm oil, Indonesia tries to boost domestic usage, meaning every 10 per cent they divert is not exported,” he said during an interview following the opening of the MPOB International Palm Oil Congress and Exhibition (PIPOC 2025) at the Kuala Lumpur Convention Centre on Thursday.

By contrast, Malaysia’s smaller domestic population means the country relies more on exports for its palm oil market, making a similar strategy impractical, he added.

Addressing Western criticism that Malaysia’s palm oil cultivation has driven deforestation, Mohamad Helmy emphasised that oil palm plantations occupy only 8.5 per cent of global agricultural land for oil crops, compared with 288 million hectares for other vegetable oils such as soy, rapeseed, and sunflower.

“Only 8.5 per cent of the world’s vegetable oil land is devoted to palm oil, producing 37 per cent of total global vegetable oil output, which is 78 million tonnes,” he said.

He further rejected claims that Malaysian palm oil cultivation significantly threatens wildlife such as orangutans, noting that plantations occupy only 0.6 per cent of the world’s 4.8 billion hectares of land.

Mohamad Helmy also highlighted palm oil’s efficiency and nutritional value, citing components such as tocotrienols and vitamin E, and noting its role in replacing petrochemical ingredients in products, including cosmetics.

“Palm oil remains the most productive and efficient vegetable oil while offering nutritional benefits,” he said. - November 21, 2025

Spotlight

Education

Fadhlina: Numerous factors considered before any decision made to close schools

Malaysia

Traffic congestion in Bandar Sunway persists into the afternoon

Malaysia

Two people allegedly stabbed in Kepong attack, student faces 20 years in jail

Malaysia

KLIA steps up K9 patrols at peak hours after security incidents

Malaysia

Customs seizes RM162m in drugs, including 460kg hidden in cemetery hut

Malaysia

Fourteen men charged over teenager’s death after alleged two-day ordeal

Malaysia

Instant billionaire? Bank customer finds RM1 billion mistakenly credited to account

Malaysia

Irene Sofiya murder: Accused’s family to take legal action over fake social media posts

World

Indonesia records 277,075 respiratory infections as forest fires fuel haze crisis

You may be interested

Malaysia

Customs seizes RM162m in drugs, including 460kg hidden in cemetery hut

Malaysia

Cabinet reviews tighter enforcement on foreign e-commerce players to protect local businesses

Malaysia

Haze worsens as 34 monitoring stations record unhealthy air quality

Malaysia

Penang Islamic Affairs Department probes Muslim workers’ involvement in temple clean-up

By Alfian Z.M. Tahir

Malaysia

Malaysia positions dispute resolution as key to attracting investment, delivering major projects

Malaysia

RM2,500 allowance to ease burdens for 90,000 Form Six students

By Alfian Z.M. Tahir

Malaysia

Cheap imports threaten local manufacturers as SMEs struggle with higher costs

Malaysia

Zara Qairina inquest: Investigating officer says final findings showed no suspicious circumstances