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MEDIA RELEASE
KEYNOTE ADDRESS OF MINISTER OF PLANTATION INDUSTRIES AND
COMMODITIES AT THE MALAYSIAN-BRITISH PARTNERSHIP FORUM,
“65 YEARS AND BEYOND” AT THE CALEDONIAN CLUB, LONDON

1. The UK and Malaysia have enjoyed 65 years of diplomatic relations since the Federation of Malaya’s independence in 1957. This year also marked the 70th year of Her Majesty Queen Elizabeth II acceded to the throne of the British monarch. As we are all aware, Her Majesty The Queen is the first British monarch to celebrate a Platinum Jubilee, marking 70 years of service to the people of the United Kingdom, the Realms and the Commonwealth.

2. Our partnership is founded firmly on common values :

• Respect for the independence, sovereignty and territorial integrity of all nations
• Mutual respect and benefit
• A commitment to rules-based trade and to low-carbon development to tackle
climate change
• Respect and promotion of the rule of law and human rights
• Advancement of international law and multilateralism and the promotion of
peace, security and prosperity in line with the United Nations and
Commonwealth Charters

3. The UK is Malaysia 19th largest trading partner. In 2021, the total trade of goods and services for both countries accounted for £5.2 billion. Malaysian export of agricultural commodities (Palm Oil, Rubber, Timber, Cocoa and Pepper) contributed to 14% of the total trade, valued at £734 million. This agriculture trade export has shown an increase of 17% compared to 2020, which is £628 million.

4. As the UK has shown interest in ensuring that agricultural commodities entering the UK are sustainably sourced, Malaysia has been working closely with the UK to ensure that the voice of producing countries like Malaysia are heard and any new laws to be enacted that may affect the trade exchanges are in line with the spirit of the United Nations Sustainable Development Goals (UNSDG) as a whole – economically, socially and environmentally.

5. We also showed our support during UK’s Presidency of the 26th Conference of Parties (COP 26) last year and contributed to the Glasgow Declaration on Forests and Land used. In relation to that, we are committed to strengthening our cooperation through the Forest, Agriculture and Commodities Trade Dialogue (FACT Dialogue) where we were tasked as the co-facilitators for the Smallholder Support Working Group. Malaysia’s Sustainability Efforts in Commodities

6. Sustainability has always been the central theme of Malaysia’s economic policy direction throughout the years from the National Economic Policy (NEP) in the 1970s, New Economic Model (NEM) in 2009, Vision 2020 and the latest Shared Prosperity Vision 2030.

7. Sustainability has always been associated with deforestation. However, it is crucial to note that sustainability is more than just forests. The United Nations'definition of sustainability is clear: social and economic sustainability is on an equal plane with environmental. So, the Malaysian Government is also focused on supporting small farmers and their economic communities. Among the initiatives includes developing infrastructure, granting financial assistance where needed, and protecting the ability of small farmers to earn a living.

8. Our sustainability practices recognises how these issues are interconnected and requires a systematic approach. MPIC stands guided by the action plans of the UNSDGs blueprint, particularly on:

• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 15 (Life on Land)
• Goal 17 (Partnerships to achieve the Goal)

9. Taking an example from the palm oil industry, I want to stress that the Malaysian palm oil industry now focuses on improving productivity and yields rather than expanding land for cultivation. Forest protection is a priority for our government. Malaysia also assures the world that it will not retreat from its 1992 Earth Summit pledge on sustainable development – it will keep at least 50% of its total land area under permanent forest. Malaysia has also committed to plant '1 million forest trees species within the next ten (10) years'.

10.Another important measure taken by the Malaysian Government through the Ministry of Plantation Industries and Commodities (MPIC) is the introduction of the Malaysian Sustainable Palm Oil Certification (MSPO) in 2015, which was made mandatory starting from January 2020. The MSPO Certification Scheme ensures that Malaysian palm oil is sustainably produced and safe for consumption. It also seeks to reduce the industry's social and environmental impacts and help independent smallholders certify their palm oil for the export market. In addition, the certification ensures the country's palm oil industry complies with international sustainability requirements encompassing the whole supply chain, from growers and millers to traders and retailers.

11.MPIC through the National Agri-commodity’s Strategic Plan is also committed to ensure that other commodities will have their own certification systems in the future. Circular Economy

12.Integrating a circular economy into the production of Agri-commodities, particularly palm oil, is an effective solution to optimise the usage of resources (raw materials) and minimise wastage from production, emissions and energy inefficiency.

13.This is done by reducing, reusing and recycling materials commonly underutilised in the current linear economy. The model adopts a circular pathway which utilises usable materials after the first processing cycle by reintroducing it back into the second processing cycle of similar or different products as secondary raw materials. Ultimately, this process will translate into optimising raw materials by continually adding value to its users along the supply chain.

14.Production of palm oil results in multiple types of secondary products (solid and liquid) in high volumes, such as Palm Oil Mill Effluent (POME), Empty Fruit Bunch (EFB), decanter cake and palm pressed fibres. These biomass products can be further utilised directly to produce new value-added products or as alternative energy sources to fuel the production facility.

15.The incorporation of this model will not only address the environmental aspect plaguing the palm oil industry but also the economic concern of the supplies of primary raw materials. MPIC is also planning to expend the circular economy technology to other Agri-commodities such as rubber, pepper and Kenaf to ensure a more effective and sustainable waste management.

16.As the industry embarks on reusing its waste, the reliance on primary sources will diminish. This contributes to reducing deforestation and lowering our carbon footprint. Introducing new usages of secondary products will also bring about new economic opportunities. Furthermore, it could significantly disrupt the current energy industry by increasing the accessibility to biomass as an energy alternative, in tandem with the world's commitment to decarbonising its economy by reducing its reliance on fossil fuels.

17.I wish to highlight that Malaysia has been at the forefront of promoting palm oil and palm biomass in the manufacturing sector. The National Biomass Strategy 2020 (NBS2020) set a target to turn palm biomass into higher-value products that will create an incremental gross national income (GNI) of £5.5 billion (RM30 billion) and 66,000 new jobs while attracting £4.6 billion (RM25 billion) in investment and reducing carbon emissions by 12%.

18.The circular economy model is undoubtedly the way forward for Malaysia’s Agri-commodity sustainable and ethical sourcing. Despite the challenges of integrating, it into the current linear model, the focus would be to create more value. There is much value extracted from reusing and recycling these raw materials.

CLOSING REMARKS : Malaysia – UK Partnership Opportunities

19.Malaysia opens its doors to work with international parties including government agencies, academicians, research institutes, industry players and businesses to ensure the Agri-commodity industry continues to develop progressively and sustainably.

20..Looking at sustainability and circular economy, we realise that we have to work with many stakeholders and potential tech players to harness the latest technology to further explore the full potential of Agri-commodities production. There is a need for better facilities, more advanced technologies and substantial investments into the industry to ensure a competitive edge against
traditional practices.

21.I hope this forum can further look into the possible opportunities for partnerships between our countries and strengthening both countries' national economic agendas.

22.On that note, I wish all delegates and participants of the Malaysia – British Partnership Forum a fruitful discussion. *The keynote address was delivered during the Malaysian British Partnership, “65 Years and Beyond” held at The Coledonian Club, 9 Halkin St, London on 17th May 2022

YB DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
25 MAY 2022

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Last Updated: 24 May 2022

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FUTURE-PROOFING PALM OIL FROM ADVERSE WESTERN PROPAGANDA

THE notoriety of developed economies against palm oil – the most produced, consumed and traded edible oil – all in favour of protecting the soybean trade (the second most-produced edible oil) is well-known. The European Union (EU) Parliament has voted for palm oil-based biofuels to be banned entirely by 2021. In contrast, other crop-based biofuels will be capped at 7%
and enjoy a gradual reduction to 3.8% by 2030.

Such a ban is linked to the EU’s belief that oil palm cultivation is responsible for deforestation. Another trade ban that has often affected Malaysian palm oil export is the US Customs and Border Protection (CBP), curtailing palm oil import into the world’s largest economy based on forced labour allegations. In the EU case, palm oil exports into the continent face numerous hurdles even with Asian palm oil exporters voluntarily abiding by the sustainable certification ruling under the Roundtable on Sustainable Palm Oil (RSPO) scheme.

In fact, putting in place mandatory sustainability requirements is not an issue for exporters, given that sustainable volumes will receive a market price premium. However, the EU’s failure or hesitance to recognise the national sustainability standards in Malaysia (the MSPO or Malaysian Sustainable Palm Oil standard) and Indonesia (the ISPO or Indonesian Sustainable Palm Oil standard) is a severe worry for both top two global palm oil producers. This is ironic, considering Europe only represents 6.4% of the global palm oil market. Yet, the cartel-like RSPO endeavours to apply pressure from consumers in affluent Western markets on Asian palm oil producers.

To re-cap, Indonesia was the first to initiate its national certification scheme (the ISPO) in 2011, with Malaysia following suit four years later (with the MSPO). Since then, both countries have been campaigning globally to win recognition of their standards and the right to define sustainable palm oil on their own terms. Uneven turf Unfair attacks and new allegations continue to discredit and pursue the industry's downfall amid existing legislation and certification standards to ensure labour rights are protected or the very fact that oil palm cultivation occupies only 0.31% of the global 5 billion hectares of agricultural land.

As highlighted by Gambian Centre for Sustainable Palm Oil Studies (CSPO) member Muhammed Magassy, it should come as no surprise if significant palm oil producers (like Malaysia and Indonesia) regard the EU’s anti-palm oil stance as “crop apartheid” given such behaviour re-animated the exploitative, colonial origins of the industry. While the EU biofuel ban is in place, it simultaneously evokes subtle protectionism by exempting European oilseed products such as rapeseed and sunflower, which require more land, water, and fertiliser than palm oil, from any economic penalty.

“We in Africa know this too well; the EU’s Common Agricultural Policy (CAP) provides domestic farmers €42 billion (RM196.2 bil) in annual subsidies, hence strengthening their ability to export at artificially low prices to the developing world,” argued Muhammed Magassy in “Green Trade War on Palm Oil” published by London-based The Parliament e-magazine. “This gives European producers an unfair advantage in markets such as Africa, bankrupting local farmers.”

Imagine such biasness is allowed to prevail even as palm oil also boasts numerous health benefits, which has led to the Malaysian Palm Oil Council (MPOC) unveiling the Malaysian Palm Oil Full of Goodness campaign to showcase the Malaysian Palm Oil industry’s sustainable initiatives and management. Dismantling barriers Denial of entry is already fuelling deep concerns among global industry players concerned that such a ruling may influence other major export destinations to follow suit. Of late, there has been a resurgence of anti-palm oil campaigns – even at the school level by associating the emergence of oil palm plantations with the disappearance of orang utans.

As mentioned earlier, such stigma surfaces even though there have been existing legislations to protect and prohibit the expansion of oil palm cultivation under existing conservation programmes. It just seems that no matter how many preventive measures are put in place, they are never enough. As much as Malaysia and neighbouring Indonesia, which are the world’s two largest palm oil producers, harbour no intention to make enemies, it is obviously high time for the palm oil industry to take a more proactive and aggressive stance to dispel baseless claims by powerful competitors who are out there to champion other types of edible vegetable oils.

It is time for all concerned certification bodies to come forward to defend palm oil, dispelling all the allegations. Slim chance or otherwise, Malaysia/Indonesia must proactively pursue their legal recourse filed with the World Trade Organization (WTO) against the EU’s restrictions on palm oil biodiesel. Truth must be told As highlighted by FGV Holdings Bhd’s group CEO Mohd Nazrul Izam Mansor at the Future-Proofed Palm Oil Summit (FPPO 2021) in November last year, the global agribusiness and food producer places a strong commitment to environmental, social
and governance (ESG) considerations in all its undertakings.

This is clearly embedded in the group’s sustainability policy where FGV has adopted the no deforestation, no planting on peat and no exploitation commitment. In its quest to conserve biodiversity and wildlife, the group has embarked on a new three-year initiative to protect and enhance high conservation value and high carbon stock areas within the vicinity of its plantations by planting fast growing indigenous or native tree species and wild fruit trees. “Wildlife protection and human-wildlife conflict management remain a high priority for FGV. One of our conservation projects involves the rescue, rehabilitation and release of injured or displaced Malayan Sun Bears,” he said in a special address at FPPO 2021.

“While this project is ongoing, we have expanded our Protection of Rare, Endangered and Threatened Species Programme to include pygmy elephants, gibbons and pangolins.” On the social component, FGV has been focusing on efforts in the past several years towards ensuring compliance to human rights and labour standards. These efforts have been intensified since early 2019 especially with our affiliation to the Fair Labour Association (FLA) which is a long-term programme to improve structures and systems for the enhancement of FGV’s labour practices.

Even then, it is worth noticing that FGV was slapped with a US CBP Withhold Release Order (WRO) on Sept 30 last year on allegations of forced labour. Nevertheless, FGV has appointed independent auditing firm Elevate Ltd expedite the auditing process which will eventually pave way to the lifting of the (WRO). FGV is not alone in such quandary as another Malaysian palm oil giant Sime Darby Plantation Bhd (Sime Plantation), too, is not spared from the WRO action. The world’s largest producer of Certified Sustainable Palm Oil (CSPO) is expected to deliver its impact report submission to the US CBP by end-April which will go towards the lifting of the WRO imposed on the company since December 2020.

Interestingly, Sime Plantation has recently revealed that it is transforming all its 33 Malaysian palm oil mills into certified food safety facilities by end-2023, after which the same standards will be rolled out across the group’s operations in Indonesia, Papua New Guinea and the Solomon Islands. On my part, I am seeking meetings with the US CBP and the EU by July this year to
set the record straight on forced labour allegations while once and for all, address the fallout from WROs issued by the US CPB to FGV Holdings and Sime Plantation in 2020.

On a similar note, Malaysia will be represented at the dispute proceeding on the EU’s alleged discrimination against the national palm oil industry from May 8 to 18 for us to provide our side of the story on the matter. I call on all Malaysians to work together with us to address the anti-palm oil propaganda by Western countries which is clearly aimed at bringing down our country's palm oil industry. I will ensure we put up an "aggressive" fight against these foreign pressures and provide them with all the relevant evidence. We will show them that Malaysia is not a
nation to be fooled around with.

Datuk Zuraida Kamaruddin is Malaysia’s Plantation Industries and
Commodities Minister.

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MEDIA RELEASE
MALAYSIA INTERNATIONAL AGRICOMMODITY EXPO AND SUMMIT 2022
(MIACES) AS GLOBAL HUB OF AGRICOMMODITY INDUSTRY PLAYERS
______________________________________________________________________

1. YAB Dato' Sri Ismail Sabri bin Yaakob, Prime Minister today officiated the Malaysia International Agricommodity Expo and Summit 2022 (MIACES) which will start from 26TH to 28TH July 2022 at MITEC, Kuala Lumpur and involve participation from 39 countries and over 350 international companies.

2. MIACES is organized by the Ministry of Plantation Industries and Commodities (MPIC) with the support of agencies and councils under the Ministry. MIACES 2022 is a medium of strengthening the network of cooperation between agricommodity players to build a network of transactions as well as explore potential investments in the agricommodity sector. It also opens up the space and potential for industry players to penetrate the international market in a conducive business environment.

3. The expo and summit, which runs for three (3) days today, features the latest commodity products, services and plantation technology under one roof. Various other events were also organised such as conferences, roundtable discussions, business to business (B2B) meetings and prestigious awards nights in recognition of the industry players contribution.

4. MIACES 2022 helps bridge the gap between industry players, accelerating digitalization to build a sustainable ecosystem to improve quality. The expo and summit also enable industry players in each agricommodity network to transact and collaborate in the same hub.

5. Not only that, MIACES 2022 featured a 'Hosted Buyer' Programme that helps entrepreneurs expand their business model and open up opportunities to connect with leaders in the agricommodity sector. The B2B Virtual MIACES platform offers a one-on-one session with exporters, distributors, importers, investors, manufacturers, retailers, merchants, wholesalers and government bodies and agencies.

6. A total of 20 speakers will be involved in mentoring and coaching sessions for startups in the plantation and commodity industries, as well as recruitment, training and upskilling sessions for all. Special Farmers Day during the expo and summit also provides an opportunity for farmers to obtain information on the latest incentives, support and technologies in the industry.

7. All parties are invited to attend MIACES to support the country's agricommodity industry. For more information and pre-registration for activities, visit myagricommodity.com. Admission is free for all visitors.

MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES
26TH JULY 2022

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MEDIA STATEMENT
MPIC ENSURES SUSTAINABILITY OF MALAYSIA’S KEY
AGRICOMMODITY PRODUCTS THROUGH DAKN 2030

1. Contrary to expectation, the two-year COVID-19/MCO (Movement Control Order) period of 2020-2021 were ‘booming years ’for Malaysia’s Agricommodity products with an overall increase of 64% from the pre pandemic period of 2018-2019.

2. Despite the country facing numerous economic devastations from the raging COVID-19 pandemic, the export value of Malaysia’s Agricommodity products remained strong, rising significantly over the four-year period from RM127.9 billion in 2018 to RM128.5 billion (2019) to RM151.3 billion (2020) and RM209.6 billion (2021).

3. To sustain the potential and growth of Malaysia’s Agricommodity industry, the National Agricommodity Policy 2021-2030 (DAKN 2030) was launched in March 2022 to further drive the
development of the country’s Agricommodity sector in a more sustainable, competitive and market-oriented manner. This is in tandem with new norms and increased leverage on digital technology in the post-COVID-19 era.

4. In essence, DAKN 2030 contains five core thrusts:

(i) sustainability;

(ii) productivity;

(iii) value-added creation;

(iv)market development; and

(v) inclusivity.

5. Below are six Agricommodity products that will benefit directly from the implementation of DAKN 2030:

(i) Palm oil: Efforts will be undertaken to increase exports and reduce stocks through export duty exemptions for crude palm kernel oil (CPKO) and processed palm kernel oil (RBDPKO) for
companies that meet the application criteria. As a result, the price of crude palm oil (CPO) has stabilised again while showing an increasing trend from June 2020 until now. In tandem with this is implementation of the Malaysian Sustainable Palm Oil (MSPO) certification to brand sustainable and quality Malaysian palm oil as well as strengthening strategic cooperation with Indonesia through the Council of Palm Oil Producing Countries (CPOPC).

(ii) Rubber: Plans are afoot to extend the use of rubber in Malaysia to road construction and the production of new and value-added products based on rubber such as seismic bearings, rubber gloves and others. At the same time Malaysia will co-operate with the world's main rubber producing countries namely Thailand and Indonesia under the framework of the International Tripartite Rubber Council (ITRC) to strengthen and stabilise international rubber market prices;

(iii) Timber: Malaysia will expand its participation in domestic and international timber, furniture and construction exhibitions to create demand for Malaysian timber products and to increase
networking and business opportunities in relevant countries; and At the same time, the country plans to increase cooperation between relevant agencies such as the Malaysian External Trade
Development Corporation (MATRADE) and the Malaysian Communications and Multimedia Commission (MCMC) to encourage the timber industry to expand access to the digital market through digital exhibition participation as well as to encourage marketing through digital platforms such as AliBaba and MineBizs, among others.

(iv) Cocoa: DAKN 2030 seeks to implement the Domestic Market Support Service Programme (KSPD) by helping cocoa farmers market their beans with reasonable purchase price offers, thus
reducing the activities of middlemen who offer uncompetitive prices. Additionally, efforts will be directed at carrying out virtual promotional activities where the industry has attended several
virtual exhibition programmes through webinar, zoom stage presentation, live chat and online business matching platforms.

(v) Pepper: A potential effort is to directly sell pepper and its related products to special or niche markets to increase the competitiveness of the Malaysian pepper industry; This entails the
introduction of value-added pepper products such as sterile pepper (Mikrokleen) and pepper powder for markets that are more concerned with food safety and quality as well as farm-level
specialty products such as creamy white pepper (LPK). So far, the Malaysian Pepper Board (MPB) has successfully penetrated the value-added pepper product market and the special pepper
market in Japan, Sweden, South Korea, China, Taiwan, Hong Kong, Spain and Polynesia, to name a few markets.

(vi) Kenaf: The initial plan is to introduce cluster farms of 20 to 50 hectares to replace small-scale farms that are less economical and cultivated by existing kenaf growers. Additionally, the focus is also to develop a Research Centre for Research, Innovation Technology And Incubation Of Small Enterprises (RINTIS) to produce entrepreneurs in premium fibre processing activities apart from increasing the research and development (R&D) efforts of kenaf at upstream, intermediate and downstream levels.

6. MPIC is committed to sustain the country's agricommodity sectors in order to ensure continuous impactful economic recovery and improvement post COVID-19, despite facing the inflation
challenge predicted to be in 2023. DAKN 2030 is the guideline for the ministry in maximizing the potential of the circular economy through agricommodity biomass. This is to strengthen the position of the agricommodity sectors in economic recovery post COVID19.

YB DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
26th SEPTEMBER 2022