Malaysia Boosts Palm Oil Yields Without New Deforestation: Johari

Malaysia will not open new land for oil palm cultivation, instead prioritising yield enhancement on existing plantations as part of its sustainability commitment. Minister of Plantation and Commodities, Datuk Seri Johari Abdul Ghani, said Malaysia has committed to halting further deforestation for new plantings, in line with its pledges to the United Nations — currently with 5.7 million hectares of oil palm plantations—.

This year’s Henri Fauconnier Lecture was delivered by Tan Sri Lee Oi Hian, Executive Chairman of Kuala Lumpur Kepong (KLK) Berhad, a veteran industry leader known for his vast experience in upstream and downstream plantation sectors, sustainable development, and strategic leadership in driving KLK’s global growth.

“Every industry player must comply with the Malaysian Sustainable Palm Oil (MSPO) certification. Malaysia contributes approximately 70% of the world’s palm oil supply, producing around 19.3 to 19.4 million tonnes of crude palm oil (CPO) annually,” he said in a statement.

“PIPOC 2025 features four concurrent conferences, namely Agriculture, Biotechnology and Sustainability (ABS); Milling, Processing and Biorefinery (MPB); Downstream and Value Addition (DVA); and Global Economics and Marketing (GEM), bringing together expertise across the entire value chain.”

Speaking at a media conference at the MPOB International Palm Oil Congress and Exhibition (PIPOC) 2025, organised by the Malaysian Palm Oil Board (MPOB) at the Kuala Lumpur Convention Centre (KLCC), Johari noted that Malaysia’s main export destinations include China, India, and Europe.

The event was officiated by Deputy Prime Minister and Minister of Energy Transition and Water Transformation, Datuk Amar Fadillah Yusof, and attended by MPOB Director General Datuk Dr. Ahmad Parveez Ghulam Kadir and MPOB Chairman Datuk Mohamad Helmy Othman Basha.

Held until Thursday, PIPOC 2025 carries the theme “Transforming Today, Empowering Tomorrow Through Innovation”, featuring 100 speakers from Malaysia and abroad, as well as 2,000 participants, including policymakers, researchers, industry leaders, and major stakeholders.

Johari added that palm oil export transactions which are mostly denominated in US dollars—also contribute to a stronger ringgit, resulting in better returns for the country. On Malaysia’s biodiesel aspirations, he said the nation’s installed production capacity stands at 2.6 million tonnes annually, although current output remains below one million tonnes.

“At the moment, Malaysia is not aggressively expanding biodiesel production, but the existing capacity is sufficient should demand increase,” he added. Johari also highlighted Africa as a key growth region, with 48 countries importing Malaysian palm oil, including Kenya, currently visited by Prime Minister Datuk Seri

Anwar Ibrahim.

“Kenya is a major importer, purchasing more than one million tonnes of palm oil annually. The Prime Minister’s visit aims to expand Malaysia’s palm oil exports across African markets,” he said.

He further emphasised the significant role of technology, artificial intelligence (AI), and digitalisation in modernising the oil palm sector and enhancing efficiency. AI and digital systems can reduce labour dependency—from 500,000 workers to 200,000 workers. These technologies help raise productivity and improve the hectare to-worker ratio, for example, from eight hectares per worker to 13 hectares,” he said.

For more information and registration, please visit: 👉 https://pipoc.mpob.gov.my