Malaysia targets high-value palm oil downstream products for export growth

The Malaysian Ministry of Plantation and Commodities aims to make high-value downstream products the primary contributors to the nation's palm oil export value by 2030. This strategy is being implemented through the National Agri-commodity Policy 2021–2030 (DAKN 2030), which seeks to transform the industry from a raw material exporter into a producer of high-value processed goods.

Deputy Minister Datuk Seri Huang Tiong Sii stated that this transition is essential to protect the local industry from the volatility of crude palm oil (CPO) prices in the global market. With the export value of palm oil and its derivatives already exceeding RM100 billion, the ministry intends to reduce reliance on raw exports by strengthening sectors such as oleochemicals for premium cosmetics and personal care products.

Further efforts include the development of nutraceutical and pharmaceutical sectors, utilizing high-value components like tocotrienols and vitamin E for global health markets. These initiatives are supported by research and development from the Malaysian Palm Oil Board (MPOB) to enhance commercial capabilities and expand income opportunities for smallholders.