AreaMalaysia

Commodity GroupOilseeds, oils and meals

CommodityPalm oil

Date01/10/2019

Policy CategoryConsumption and marketing

Policy InstrumentMarket regulation

DescriptionBanned food products carrying \'no palm oil\' or \'palm oil-free\' labels from the domestic market, in a bid to stem the development of negative perceptions among consumers and protect the interests of the country’s oil-palm industry. Furthermore, the Government provided funding to the Malaysian Palm Oil Board to support the agency’s programmes aimed at promoting foreign palm oil sales and protecting the commodity\'s image.

NotesMALAYSIA – domestic market regulation (palm oil): Similar to a ban introduced earlier this year in Indonesia (see MPPU Sep.’19), the Malaysian Government is set to ban food products carrying “no palm oil” or “palm oil free” labels from the domestic market, in a bid to stem the development of negative perceptions among consumers. Aimed at protecting the interests of the country’s oil palm industry, the ban will complement the “pro-palm oil” campaign launched earlier this year (see MPPU May’19). According to local media reports, in September, the country’s leading supermarket chain decided to voluntarily ban “palm oil free” labels from its shelves. On a related note, the Government announced that, as part of its 2020 budget, MYR 27 million (USD 6.5 million) have been allocated to MPOB in support of the agency’s activities promoting foreign palm oil sales and countering alleged anti-palm oil campaigns in importing countries.