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Last Updated: 22 June 2022

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PRESS STATEMENT
BE EXTRA SENSITIVE OF US CBP’S FORCED LABOUR RULE TO
CIRCUMVENT WRO PITFALL
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1. LAST Thursday (June 2), the US Customs and Border Protection (CBP) clarified to the Malaysian media how it derived evidence of forced labour allegations and how it pursued its investigations that led to products from six Malaysian firms still being prevented from entering the US market after being slapped with Withhold Release Orders (WROs).

2. As much as we cannot totally agree with its reliance on remote or third-party evidence in its investigation process, we have to accept that at the end of the day, the enforcement agency is vested with the prerogative to act based on what it deems as proprietary information.

3. The Ministry of Plantation Industries and Commodities (MPIC) has no intention of disputing CBP's prerogative, but feel the claims are unfair and also biased.

4. The ban on Malaysian palm oil and palm oil products (or rubber gloves for the matter) is based only on allegations of forced labour claims made by NGOs and other groups.

5. Nevertheless, CBP in detailing the route and subsequent actions taken against some companies, has reiterated that its investigations were done through reasonable information, analysis, investigations and assumptions.

6. In this regard, Malaysian palm oil and palm oil-related products may have to bear the brunt of being in direct competition with soybean oil of which the US is the world’s leading producer and the second-leading exporter.

7. Now that the modus operandi of the CBP and how their verdict is passed has been made clear, the onus is on industry players – especially those in the labour-intensive rubber gloves and plantation sectors – to pay heed to CBP’s sensitivities and work around a remedial action plan to avoid being slapped again by a WRO for accusations of forced labour.

8. In this regard, MPIC wishes to commend the Malaysian Rubber Gloves Manufacturers Association (MARGMA) for its recent engagement with CBP to further develop a clear respect and understanding of the roles played by both parties in the governance of labour issues.

9. It is learnt that MARGMA has been spearheading such efforts since 2018 when it advocated a zero-debt policy and also initiated remedial actions to be undertaken by each member to dislodge itself from the stigma of forced labour by leveraging the International Labour Organization’s (ILO) 11 indicators as the guiding principle.

10.Above all else, MARGMA has also formed an ESG Unit (environmental, social, and governance unit) and task force to actively educate and sensitise members and its employees on the 11 ILO indicators of forced labour. This vigorous exercise is done via partnership with the ILO), and the US, UK and European Union (EU) embassies/high commissions in Malaysia.

YB DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
8 JUNE 2022

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Last Updated: 21 September 2022

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MEDIA STATEMENT
IPOSC 2022 – A PLATFORM TO COUNTER WESTERN SMEAR
CAMPAIGNS

1. THE 7th International Palm Oil Sustainability Conference 2022 (IPOSC 2022), to be held on Sept 13 this year will be an important platform for Malaysia to counter smear campaigns by Western vested groups against our golden commodity.

2. The bi-annual conference, with this year's theme being “Shifting Sustainability Compliance into Sustainability Stewardship", will see top experts share their views on the recent developments and possible solutions on the current sustainability concerns and challenges.

3. Held since 2008, the conference will be held in Kuala Lumpur, after the last one was held online in 2020 due to the Covid-19 pandemic. The event is also part of MPIC's aggressive efforts to counter misinformation and false information on Malaysia’s golden oil via “The Global Movement to Champion the Goodness of Palm Oil” campaign.

4. IPOSC 2022 is intended as a targeted platform to update the stakeholders on pertinent and emerging sustainability developments in the industry. There is a crucial need to continue engaging and update the Malaysian palm oil industry, as well as global stakeholders on sustainability concerns. This includes Net Carbon Zero and decarbonisation efforts, green financing and Environmental, Social, and Governance (ESG) opportunities, as well as international deforestation-linked legislations, which will impact commodities like palm oil.

5. The Malaysian palm oil industry has been at the forefront of sustainability initiatives, which include sustainability certifications, sustainability reporting and ESG governance. Malaysia would like to continue positioning its palm oil industry as a leader in sustainability and ESG engagements.

6. The topics to be discussed at the IPOSC 2022 include the Net Zero and Decarbonisation Opportunities in the Palm Oil Industry Opportunities and constraints in the palm oil industry to achieve Net Zero and decarbonisation efforts, in line with the global commitment to achieve carbon neutrality as early as 2050.

7. Global Sustainability Trade Barriers and Accelerators Sustainability initiatives in the financial, consumer and biofuels sectors, which include the roles of Green Financing, ESG investments and low-ILUC (Indirect Land Use Change) risk biofuels certifications.

8. The Impacts of Deforestation-linked Legislations on the Palm Oil Industry Potential implication of new regulations in developed countries to curb the use and imports of deforestation-linked commodities, and the role of the revised the Malaysian Sustainable Palm Oil (MSPO) in addressing these concerns

9. Studies have consistently shown that palm oil is more ecologically friendly compared with other oil crops. For example, palm oil is a more efficient carbon sink and uses less fertilisers. It also produces more oil per hectare compared with rapeseed, soybean and sunflower.

10.The MPIC is hopeful that the conference will help Malaysia stamp its mark as a global leader in sustainable management of the palm oil industry. This will help refute baseless allegations from the West that our palm oil industry has caused untold damage to the ecology.

YB DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
8th SEPTEMBER 2022

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Last Updated: 20 September 2022

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MEDIA STATEMENT
THE POTENTIAL OF MALAYSIA’S PALM OIL REMAINS INTACT DESPITE
SOFTENING CPO PRICES
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1. EXPORT of Malaysian palm oil and palm oil-based products rose by 55.2% to RM67.48 billion between January and June this year from RM43.47 billion during the corresponding period in 2021. Of the value, 66.1% of the export earnings were contributed by palm oil which amounted to RM44.63 billion compared with only RM28.8 billion in the same period last year.

2. In terms of volume, the export of palm oil and palm oil-based products between January and June this year rose by 2.8% to 11.47 metric tonnes (MT) from 11.15 million MT a year ago. Malaysia recorded strong exports despite the drop in crude palm oil (CPO) production in the first half (1H) of 2022. Based on statistics by the Malaysian Palm Oil Board (MPOB), crude palm oil (CPO) production fell by 1.1% to 8.27 MT during the period compared with 8.36 metric tonnes during 1H 2021.

3. The fall is attributed to the dip in fresh fruit bunch (FFB) yield by 3.6% to 6.9 tonnes per hectare during the January-June 2022 period compared with 7.16 tonnes per hectare in the same period last year. Meanwhile, the sharp rise in export earnings is partly due to the spike in CPO prices, both domestically and abroad. Between January and June 2022, CPO prices rose by 55.9% to RM6,330 per MT from RM4,061.50 per MT during the same period in 2021.

4. According to the Department of Statistics Malaysia (DOSM), export earnings for palm oil and palm oil-based products between January and May this year rose to RM56.47 billion, or an increase of 58.8% compared with the five months in 2021.

5. The Ministry and I are pleased with the encouraging figures achieved during the first six months of 2022 as planters – both smallholders and listed plantation companies – were able to capitalise on the spike in CPO prices to generate higher revenue. Obviously, a surge in revenue that translates into better earnings is most welcomed as this would also contribute toward various sources of taxation that will ultimately enable the Keluarga Malaysia Government to carry out relevant socio-economic programmes that are deemed vital to expedite Malaysia’s economic recovery from the economic fallout following the COVID-19 pandemic.

6. It is also gratifying to note that Malaysia's golden crop has gained wide global acceptance, as demonstrated by the encouraging export during 1H 2022. In this respect, I wish to thank my colleagues at the MPIC and those spread across related agencies for their aggressive efforts in promoting Malaysian palm oil, particularly during my various trade missions abroad.

7. We are confident that the prospects for Malaysian palm oil will remain bright during 2H 2022. This is partly due to greater acceptance of the commodity globally, including that from non-traditional markets. We attribute this to the success of MPIC's campaign "The Global Movement to Champion the Goodness of Palm Oil," which is intended to counter misinformation and false information on our number one commodity.

DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
09 AUGUST 2022

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Last Updated: 20 September 2022

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MEDIA STATEMENT
MALAYSIA PLEDGES TO HELP INDIA MEET ITS PALM OIL DEMAND
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1. MALAYSIA is prepared to fulfil India’s demand for palm oil in view of potentially erratic supply from Indonesia. This is considering that in less than one year, Indonesia's policy on palm oil export has created market uncertainties to major importing countries like India.

2. India is among the world’s largest palm oil user after Indonesia with a consumption level of 8.7 million tonnes in 2021 and 8 million tonnes alone in the first quarter of 2022. As stated by Indian Vegetable Oil Producers ’Association (IVPA) president Sudhakar Desai at the recent Malaysia International Agricommodity Expo and Summit (MIACES) 2022, Malaysia has kept its policy pertaining to palm oil trading in a stable manner, thus able to meet India's demand during the period of Indonesia’s ban on palm oil export.

3. Sudhakar was also quoted as saying that Malaysia's good supply chain played a crucial role in the edible oil security for India’s demand in the last two months. India’s faith in Malaysia – the world’s second largest palm oil producer after Indonesia – as a trusted supplier who can guarantee undisrupted supply has been further fortified by a memorandum of understanding (MOU) signed between IVPA and the Malaysian Palm Oil Council (MPOC) at MIACES 2022.

4. Very broadly, the MOU aims to strengthen cooperation between India and Malaysia in the palm oil industry, enhance collaboration to promote the Indian palm oil industry, exchange information pertaining to sustainability efforts as well as research and development insofar as the golden crop is concerned.

5. Towards this end, I share the sentiment by IVPA president Sudhakar who is confident that both the association and MPOC are able to take up dynamic policy-related issues with respective policymakers for the benefit of the industry in both countries. At the moment, IVPA has estimated India’s palm oil imports from Malaysia to remain stable in the second half of 2022, making up about 55% of India’s total palm oil imports despite Indonesia’s move to accelerate palm oil exports in recent times.

6. In fact, IVPA further foresees a surge in demand to the 800,000 tonnes per month region for the next six months or an improvement of about 20% from the first half of 2022. India's optimism on Malaysian palm oil is a vote of confidence on our golden crop. We hope this will spur more non-traditional markets to start switching to palm oil, which has proven to be healthier and more sustainable compared with alternatives.

7. In this respect, the MPIC will step up efforts to promote Malaysian palm oil, not just in India but throughout the world, including non-traditional markets in line with the "The Global Movement to Champion the Goodness of Palm Oil" campaign.

DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITITES
04 AUGUST 2022