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Government remains optimistic about palm oil industry’s promising future

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Chan (third from left) launching the event.

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MIRI: The government has expressed strong optimism about the future of the palm oil industry, citing its growing market potential and resilience despite past criticisms.

Speaking at the launch of POMtec 2025, Deputy Plantation and Commodities Minister Datuk Chan Foong Hin highlighted key achievements and projections for the sector.

“For the first time in history, palm oil prices have surpassed soybean oil prices. This has never happened before.

“Despite the negative perceptions associated with palm oil 10 or 20 years ago, it has now proven its irreplaceable value.

“It serves functions that other vegetable oils simply cannot replicate,” said Chan, who was representing Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani at the event.

Chan emphasised palm oil’s unmatched efficiency in production compared to other vegetable oils.

“When it comes to producing chemical products, for instance, other oils cannot deliver the same results. Palm oil remains the most efficient among all types of vegetable oils, making us very optimistic about the market’s future.”

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The two-day POMtec 2025 conference, held in Miri, serves as a platform for industry stakeholders to discuss advancements in palm oil management and technology.

With the theme focusing on collaboration and innovation, the event enables participants to present their agendas directly to the government.

Chan noted that crude palm oil (CPO) prices reached significant highs last year, exceeding RM5,000 per metric tonne at one point, with fluctuations currently between RM4,000 and RM8,000.

He projected this year’s average price to stabilise around RM4,000 to RM4,300 per metric tonne.

“This stability underscores the strength of the market. Events like POMtec 2025 provide vital opportunities for Sarawak and other palm oil players to exchange insights and push forward innovation,” he remarked.

He also addressed ongoing challenges related to negative perceptions of palm oil, particularly in Europe.

He highlighted Malaysia’s proactive measures, including the Malaysia Sustainable Farmers scheme (FSTO), as the gold standard for sustainable practices.

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“We are prepared to address concerns raised by governments, NGOs, and European entities. This year, we’ll take a more cautious approach to ensure our European counterparts recognise Malaysia’s efforts in meeting their stringent requirements.”

The event brought together prominent figures in the palm oil industry, including Sarawak Oil Palm Plantation Owners Association chairman Eric Kiu Kwong Seng, MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir, and POMtec 2025 organising chairman Tian Foon Howe.

Chan (seated, third from left) with others and participants of the event after the launch.

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