Latest news with #MinistryofPlantationandCommodities
The Sun
2 days ago
- Business
- The Sun
Ministry initiates urgent discussions with palm oil industry over upcoming 5% SST on oleochemical sector
BANGI: The Ministry of Plantation and Commodities has instructed for an immediate engagement session with palm oil industry players following concerns over the implementation of a five per cent Sales and Service Tax (SST) on the oleochemical sector starting next month. Its Minister, Datuk Seri Johari Abdul Ghani, said that the ministry needs to obtain direct feedback from companies that are genuinely involved in the palm oil industry chain, particularly in the milling, refining, and oleochemical sectors, to determine whether the tax implementation affects the industry's competitiveness. 'I have instructed the ministry to engage with industry players. We want to know specifically which parts are affected. SST is a taxation system that has already been implemented in our country. 'When receiving significant negative feedback, I said we should not just react; instead, we need to engage with the industry to understand the impact. If it affects competitiveness, only then will we review it,' he told the media after officiating the Malaysian Palm Oil Board's Technology Transfer Programme 2025 here today. Johari stated that the ministry would only assess feedback from parties actively involved in the industry, rather than from outsiders who may lack a comprehensive understanding of operational realities and cost structures in the commodity sector. 'Sometimes, people who comment are not even involved in the industry. We need to talk to those on the ground ... who understand things from the milling stage, to refining, up to oleochemicals,' he said. The minister clarified that the export of raw materials is not subject to sales tax. 'Raw materials exported are not subject to sales tax. When people claim the burden is increasing, some may not fully understand the situation. That is why we need to go to the ground and hear directly from them,' Johari emphasised. He also said that no companies have formally applied for SST exemptions so far, and the ministry is open to reviewing reasonable cases if they directly affect the competitiveness of the national palm oil sector. CIMB Securities recently reported that Malaysia's oleochemical sector could face increased input costs starting July 1, as palm kernel oil, previously exempted from the SST, will now be subject to a five per cent sales tax. The firm said the revised tax also applies to refined, bleached, and deodorised (RBD) palm kernel oil and palm kernel shell, which have been reclassified under the expanded SST framework, affecting 4,800 Harmonised System Codes (HS). Every product that is bought, sold or shipped across borders is assigned an HS code. These codes are internationally standardised codes to classify traded products. Earlier in his speech, Johari said that the oleochemical sector accounts for approximately 24 per cent of the export value of Malaysia's palm oil products, amounting to RM27.5 billion in 2024.
New Straits Times
13-06-2025
- Business
- New Straits Times
Johari Ghani: MSPO 2.0 signals Malaysia's commodity shift
KUALA LUMPUR: Malaysia is stepping up efforts to position itself as a global leader in sustainable commodity certification through the implementation of MSPO 2.0, the enhanced standard under the Malaysian Sustainable Palm Oil (MSPO) scheme. Sustainability is no longer an option in trade; it is a prerequisite, Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani said, noting that MSPO 2.0 is a clear signal of the country's commitment to transforming the commodity sector in line with global expectations. "We are embedding sustainability at every level, from smallholder farms to export shelves, and raising the integrity of our entire ecosystem. Not only that, we aim for that MPSO model to be replicated across all commodities," he said in a statement. As part of this vision, MSPO 2.0 took centre stage at Expo 2025 Osaka, where the Ministry of Plantation and Commodities (KPK) highlighted Malaysia's dedication to making sustainability a cornerstone of its trade and economic diplomacy. The initiative signals a strategic move to align Malaysia's commodity exports with growing global demand for environmentally and socially responsible sourcing. One key focus is expanding exports of downstream and value-added palm-based products to Japan, including speciality fats, tocotrienols, red palm oil, and biomass-based medium-density fibreboard used in construction and furniture manufacturing. To support this, the Malaysian Palm Oil Board (MPOB), the R&D and licensing agency under KPK, signed several trade agreements at Expo 2025, targeting enhanced market access for palm oil products in Japan and across Asia. Malaysia's export credibility gained a further boost with the signing of a collaboration between MSPO and AEON Japan, aimed at improving the visibility of certified palm-based products in Japanese retail. MSPO-labelled items are already appearing on shelves, supported by Japan's Global Alliance for Sustainable Supply Chain (ASSC), whose members include major brands such as AEON, Meiji, Ajinomoto, and KAO. The upgraded MS 2530:2022 standard introduces stricter requirements covering deforestation prevention, greenhouse gas emissions, labour rights, and high conservation value (HCV) area protection. These updates bring Malaysia's certification scheme into closer alignment with international ESG benchmarks. With 86 per cent of the national palm oil sector already certified, Malaysia is targeting 95 per cent certification by the end of 2025. To help reach this target, the government has earmarked RM50 million under Budget 2025 to support nationwide MSPO implementation. This includes technical support, audit funding, and traceability tools, especially for independent smallholders, to ensure inclusive participation in sustainable global supply chains. In addition to palm oil, the ministry is shining a spotlight on kenaf, an industrial crop prized for its high carbon absorption and biodegradable properties. With global demand projected to exceed US$10 billion by 2032, Malaysia is intensifying efforts to build robust sustainability and traceability frameworks for this emerging commodity. During KPK Week at Expo 2025, five strategic memoranda of understanding (MoUs) were signed across a range of commodities, from palm biomass and sustainable pepper to kenaf innovation and cacao exports. These agreements reflect Malaysia's broader multi-commodity strategy to elevate its position as a producer of sustainable, high-value products. Malaysia's overall presence at Expo 2025 is led by the Ministry of Investment, Trade and Industry (MITI), with over 21 ministries and 70 agencies contributing to a unified national showcase. Over the 26-week event, the Malaysia Pavilion will host forums, product demonstrations, business matching sessions, and signing ceremonies, positioning the country as a forward-looking trade and investment partner. So far, Malaysia has achieved 68 per cent of its RM13 billion target in trade and investment leads for Expo 2025, a testament to its whole-of-government strategy that places certified sustainability, innovation, and inclusivity at the centre of its global economic diplomacy.
BusinessToday
27-05-2025
- Business
- BusinessToday
Malaysia Eyes Deeper Palm Oil Trade Ties With China In Strategic Trade Mission
Malaysia is set to strengthen its foothold in the Chinese palm oil market through a high-level trade mission to China led by Deputy Plantation and Commodities Minister Chan Foong Hin. The visit, from May 18 to 24, aims to unlock new commercial opportunities and expand Malaysia's palm oil exports, particularly in emerging western Chinese markets such as Chengdu and Chongqing, the Ministry of Plantation and Commodities announced. Joining Chan on the mission are Secretary General Yusran Shah Yusof and Malaysian Palm Oil Board (MPOB) Director General Ahmad Parveez Ghulam Kadir. The delegation will begin its journey in Shanghai, where Chan will officiate the 20th anniversary of the MPOB's Palm Oil Research and Technical Service Institute (PORTSIM), a vital hub for innovation and market development in China. PORTSIM collaborates with Chinese institutions to promote palm-based products across sectors, including food, oleochemicals, and household items. The institute plays a critical role in encouraging palm oil use in Chinese cuisine, particularly in popular regional dishes like mala hotpot. The delegation's itinerary includes company visits, roundtable discussions with state-owned enterprises and meetings with regional government officials, aimed at broadening trade and investment cooperation. 'Western China represents a growing market for sustainable raw materials,' the ministry said. 'This mission underlines Malaysia's commitment to boosting palm oil exports, supporting green growth, and reinforcing economic ties with China.' China is Malaysia's third-largest palm oil importer, accounting for 10% of Malaysia's total palm oil export value in 2024. Last year, Malaysia's palm oil exports to China grew 5.11% to RM10.57 billion, capturing a 26.7% market share of China's total palm oil imports. The strategic push into China comes amid shifting global trade dynamics, with Malaysia recently signalling plans to recalibrate its palm oil export strategies following new tariff measures imposed by the US. Related
Borneo Post
24-05-2025
- Business
- Borneo Post
Sabah cocoa production on the rise
Ramle (left) and Matbali speaking to reporters after the walkabout. KOTA KINABALU (May 24): Sabah has recorded a rise in cocoa production, attributed to sustained government assistance and initiatives aimed at supporting local farmers. Malaysian Cocoa Board (LKM) director-general Datuk Dr Ramle Kasim said that although he did not have the exact figures on hand, production has notably increased compared to a decade ago. 'This can be seen with current cocoa prices nearing RM30,000 per tonne. We foresee this figure continuing to rise,' he said. He credited the increase to various government efforts, particularly at the upstream level, in helping cocoa farmers improve productivity and livelihoods. 'The Ministry of Plantation and Commodities (KPK), through LKM, has been providing aid for cocoa planting, rehabilitation and other forms of assistance to boost production and strengthen the economic standing of our target groups,' Ramle told reporters after a walkabout at the Sabah International Convention Centre on Friday in preparation for the Malaysian International Cocoa Fair (MICF). He added that LKM remains committed to ensuring cocoa farmers in Sabah are supported and actively working to uplift the state's cocoa industry. Meanwhile, Ramle said more than 25,000 visitors are expected to attend the four-day MICF, driven by extensive promotional efforts. The event will feature 160 booths showcasing various cocoa-based products and information, including participation from international exhibitors from China, Singapore, Europe and Africa. In addition to chocolate, visitors can explore cocoa-based skincare products made from cocoa butter, view exhibitions on advanced chocolate-making machinery from other countries, and enjoy a chocolate-making competition. Also present at the walkabout was LKM chairman Datuk Matbali Musah.
The Sun
02-05-2025
- Business
- The Sun
Malaysia prepares for palm oil tariff talks with US
PUTRAJAYA: Malaysia is making thorough preparations for official tariff negotiations with the United States, with the Ministry of Plantation and Commodities (KPK) emphasising the need to protect the interests of the country's commodities sector, particularly palm oil. Its minister, Datuk Seri Johari Abdul Ghani, stated that although the United States is not the largest buyer of Malaysian palm oil products, exports to the country remain significant and strategically valuable. 'We have provided all relevant facts and information to the Ministry of Investment, Trade and Industry (MITI) to be used in the upcoming negotiations. For example, with regard to palm oil, even though the United States is not a major buyer, we still export nearly RM4.9 billion annually to that market,' he told reporters at the Silver Jubilee Gala Night of the Malaysian Palm Oil Board (MPOB). Johari said Malaysia's largest export markets for palm oil currently are Europe, India, and China, which collectively contribute over 40 per cent of total exports. 'But we cannot disregard the United States, because in addition to palm oil, we also export rubber gloves - more than RM8 billion annually, wood products - nearly RM6.5 billion, and cocoa at around RM1.6 billion. Total commodity exports to the United States alone amount to about RM20 to RM21 billion,' he noted. He added that these figures highlighted the importance of the negotiations for the national commodities sector, which records total annual exports of around RM186 billion worldwide. The minister noted that Malaysian palm oil products currently face a 10 per cent tariff plus an additional 24 per cent in the United States, compared to Indonesia, which faces a 10 per cent tariff plus an additional 32 per cent. 'In this regard, we have a slight advantage over Indonesia. But this advantage doesn't mean we can be complacent. We must also continue to strengthen trade relations with other countries,' he said. He stressed the need to continue engagement and diplomacy efforts with major buyers worldwide, given the large demand and market capacity beyond the United States. Earlier, MITI announced the appointment of Deputy Secretary-General (Trade) Mastura Ahmad Mustafa as Malaysia's chief negotiator in the official tariff talks with the United States, with the US naming an Assistant US Trade Representative (USTR) to lead their side. According to MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz, the negotiations are expected to focus on tariff reduction and non-tariff barriers - especially in the agricultural sector - as well as addressing the current bilateral trade imbalance, which stands at US$25 billion.
