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Last Updated: 08 November 2023

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MPOB INTERNATIONAL PALM OIL CONGRESS AND EXHIBITION 2023 

(PIPOC 2023)

Prime Minister YAB Dato’ Seri Anwar bin Ibrahim officiated the MPOB International Palm Oil Congress and Exhibition 2023 (PIPOC 2023), the world's largest palm oil congress and exhibition, at the Kuala Lumpur Convention Centre today. Also present was the Deputy Prime Minister and Minister of Plantation and Commodities, YAB Dato’ Sri Haji Fadillah bin Haji Yusof.

The oil palm sector contributed significantly to the Malaysian economy with export earnings of palm oil and palm-based products surging to RM137.89 billion in 2022 from RM108.52 billion in 2021. Malaysian palm oil accounted for 31% of the world's palm oil exports, totalling 51 million tonnes last year. These achievements are noteworthy, considering that oil palm in Malaysia is planted on only about 5.67 million hectares, representing less than 2% of the global land area of 300 million hectares under oilseed crops.

Palm oil's versatility makes it a crucial ingredient in various products, from cooking oil, margarine, baked goods, and snacks to processed foods. It is rich in phytonutrients and other beneficial components that can prevent cancer, lower cholesterol, slow ageing, and manage various non-communicable diseases, including cardiovascular diseases, diabetes, and chronic respiratory conditions.

In recent years, the Malaysian oil palm industry has faced several challenges, including trade issues, false allegations, such as forced labour in oil palm plantations, trade barriers, and climate change, all of which impact the image and export of palm oil products. However, the Ministry remains optimistic that these issues will be appropriately addressed.

During the event, the Prime Minister also launched the Sawit Intelligent Management System (SIMS). SIMS is designed to facilitate transactional data management along the palm oil supply chain. It aims to promote self-regulation, reduce government oversight, provide user-friendly features, enhance security, and offer valuable decision-making insights. Developed by MPOB, SIMS enables comprehensive information management, enhancing industry efficiency and cost savings.

Another important highlight is the global recognition earned by the Malaysian Sustainable Palm Oil (MSPO) Certification. It was one of the three certification schemes adopted for the Sustainable Sourcing Code for palm oil at the Tokyo 2020 Olympics and Paralympic Games. Furthermore, the 2022 Beijing Winter Olympics showcased MSPO through the exclusive supply of bread formulated by the Palm Oil Research and Technical Services Institute of MPOB (PORTSIM).

The three-day PIPOC 2023, which commenced yesterday, is hosted by MPOB. The event has attracted more than 100 distinguished speakers and approximately 2,000 participants from across the globe, creating a platform for the exchange of invaluable insights regarding current trends, challenges, opportunities, and the latest technologies within the oil palm industry. Under the overarching theme 'Navigating Uncertainties, Building Resilience,' PIPOC 2023 simultaneously hosts four concurrent conferences: the Agriculture, Biotechnology & Sustainability Conference; the Processing, Food Safety & Nutrition Conference; the Downstream & Value Addition Conference; and the Global Economics & Marketing Conference."

The congress also includes a trade exhibition featuring more than 400 booths showcasing cutting-edge industry developments, the latest technologies, state-of-the-art equipment, and various products. PIPOC 2023 is expected to bring substantial benefits to industry players along the palm oil supply chain, aligning with the Ministry's endeavour to elevate the industry's global status while concurrently addressing its current challenges.

MINISTRY OF PLANTATION AND COMMODITIES

8^h NOVEMBER 2023

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Last Updated: 07 November 2023

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BUILDING A SUSTAINABLE GLOBAL PEPPER INDUSTRY

THROUGH A COLLECTIVE APPROACH

The Deputy Prime Minister and Minister of Plantation and Commodities, YAB Dato' Sri

Haji Fadillah bin Haji Yusof, today officiated the opening of the 51^st Annual Session and Meetings of International Pepper Community and International Spice Exhibition (51^st IPC ASM ISE), organized by the International Pepper Community (IPC) in collaboration with the Ministry of Plantation and Commodities (KPK) and the Malaysian Pepper Board (MPB) at the Pullman Hotel, Kuching, Sarawak.

IPC is an intergovernmental organisation, established in 1972 under the auspices of the

United Nations – Economic and Social Commission for Asia and the Pacific (UNESCAP). 

The primary goals of the IPC are to promote and coordinate activities within the pepper industry with a view towards further development. Member countries of the IPC encompass India, Indonesia, Malaysia, Sri Lanka and Vietnam, while Papua New Guinea and the Philippines have been designated as associate members.  

As of 2022, member countries of the IPC collectively accounted for approximately 65% of global pepper production. With the theme "Balancing the Global Pepper Supply and Demand – Alleviating Pressure on Prices", the 51st IPC ASM ISE focuses on the challenges faced by the global pepper market, most notably the imbalance between supply and demand, which has placed immense pressure on prices and pepper cultivation in various regions, causing an economic pressure on stakeholders in the pepper industry, especially small-scale pepper farmers whom had to contend with escalation in production costs and relatively low selling prices.

Malaysia was the fifth largest producer with 32,724 tonnes after Vietnam, Brazil, India and Indonesia as reported statistic in 2022. Today, there are approximately 38,587 pepper smallholders in Malaysia with a total pepper cultivation area of 8,091 hectares. 

Malaysia primarily exports pepper to countries such as Japan, Singapore, South Korea, Vietnam and Taiwan. Up to August 2023, Malaysia recorded a total of RM96 million worth of export and will double up effort searching new markets such as in Scandinavian countries.     

It is pivotal for the IPC to continue monitoring the dynamics of pepper supply and demand, considering its direct influence on price levels. The pepper producing countries should devote concrete and concerted efforts to manage the supply, stabilising prices and increasing consumption. 

Moreover, it is essential to strengthen existing collaborative efforts among all parties to be consistent and aggressive in promoting and campaigns with the intention to enhance further pepper consumption, both domestically and internationally.

Exploring unconventional markets for pepper consumption can serve to broaden the pepper market, therefore creating vast opportunities towards the growth and sustainability of the global pepper industry.

MINISTRY OF PLANTATION AND COMMODITIES

7^th NOVEMBER 2023

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Last Updated: 22 September 2023

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MINISTER OF PLANTATION AND COMMODITIES EMBARKS ON OFFICIAL VISIT  TO INDIA

The Deputy Prime Minister and Minister of Plantation and Commodities, YAB Dato’ Sri Haji Fadillah bin Haji Yusof, along with a high-level delegation from the Ministry, including representatives from MPOB, MPOC, MRB and FELDA, is scheduled to embark on an official visit to India from 24 to 28 September 2023. This visit aims to strengthen bilateral ties and explore opportunities for collaboration in the plantation and commodities sector between Malaysia and India.

The visit will also encompass a series of high-level meetings with key government officials and other relevant stakeholders, focusing on discussions regarding trade, agriculture, food security and safety.

One of the highlights of the visit will be engagements with the Telangana State Government and the Telangana oil palm farmers and smallholders. This engagement will discuss various collaboration and cooperation opportunities as well as market access for Malaysian palm oil in the region.

During his visit, YAB Deputy Prime Minister is also scheduled to attend the 2nd Sustainable Vegetable Oil Conference, organised in collaboration with the Council of Palm Oil Producing Countries (CPOPC). This conference will bring together key stakeholders in the vegetable oil industry to discuss global trends and sustainable practices.

India is the fourth-largest trading partner for Malaysia's Agri-Commodity Sector and has played a pivotal role in this contribution. In 2022, exports of Malaysian agri-commodities to India accounted for 9.9% of the total international market share, valued at RM20.49 billion – an increase of 0.4% from RM20.4 billion in 2021. The primary products exported to India were palm-based products (RM18.45 billion), followed by timber (RM1.01 billion) and rubber (RM943 million). India has also identified 0.6 million hectares, especially in Telangana, for oil palm cultivation, signalling strategic collaboration opportunities with Malaysia in research and development, planting management, and downstream product development.

One of the mission’s key objectives is to secure recognition for the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme within India's palm oil industry. A significant milestone has been achieved with the elevation of the Malaysia Sustainable Palm Oil (MSPO) Certification Scheme to MS2503:2022 (MSPO2.0). MSPO2.0 seamlessly aligns with global sustainability requirements, including United Nations Sustainable Development Goals (UNSDG), No Deforestation, Peat, and Exploitation (NDPE), and Environmental, Social, Governance (ESG) elements.

Given India's pivotal position as the largest consumer of palm oil, the adoption of MSPO2.0 standards by India's vegetable oil processing facilities will enhance recognition and promote adherence to these globally recognised sustainability standards. Additionally, it will also bolster support for the India Palm Oil Sustainability Framework (IPOS).

MINISTRY OF PLANTATION AND COMMODITIES

22^nd SEPTEMBER 2023

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Last Updated: 18 July 2023

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Joint Statement on Sustainable Agricultural Commodity Trade and Cooperation to Conserve Forests

The UK and Malaysia reaffirm their shared and ongoing commitment to work together to conserve forests and to support and promote sustainable supply chains, and sustainable production of commodities.

The UK and Malaysia are signatories to the Glasgow Leaders’ Declaration on Forests and Land Use, and we acknowledge our commitment to the objectives of the Declaration. We will continue to cooperate bilaterally, including through the UK-Malaysia Memorandum of Understanding on Cooperation in Climate Action (2022), and in fora such as the Forest, Agriculture and Commodity Trade (FACT) dialogue to support these objectives.

Both Parties will continue to uphold their respective commitments to the UN Framework Convention on Climate Change and the Paris Agreement, the Convention on Biological Diversity, the UN Convention to Combat Desertification, the Sustainable Development Goals and other relevant initiatives.

The UK and Malaysia commit to communicate facts with relevant stakeholders around palm oil and initiatives to support sustainable supply chains. The UK and Malaysia also commit to regularly share information with one another about ongoing domestic developments related to the environment and sustainable supply chains and production. This will include initiatives by Malaysia to support and develop the sustainability of Malaysian palm oil, including the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme and forthcoming updates to the scheme and, separately, the development by the UK of the Forest Risk Commodity regulations under the Environment Act 2021 including guidance for regulated businesses to support their compliance with the legislation once implemented. The UK and Malaysia acknowledge the role of these initiatives in improving the sustainability of supply chains.

The UK and Malaysia look forward to continuing their efforts to support and encourage future development of sustainability domestically and internationally to meet our shared goals.