AreaMalaysia

Commodity GroupOilseeds, oils and meals

CommodityPalm oil

Date01/07/2020

Policy CategoryConsumption and marketing

Policy InstrumentMarket promotion

DescriptionAnnounced new initiatives to counter growing criticism, in a number of importing countries, of allegedly unsustainable production practices in the oil palm sector. To safeguard the industry’s interests the Government intends to focus on: i) promoting the nutritional benefits of palm oil internationally; ii) sponsoring scientific studies on the product’s properties; iii) supporting R&D activities to create new value-added products; iv) strengthening selected export markets; and v) pursuing regional trade consultations and bilateral free trade agreements.

NotesMALAYSIA – market promotion (palm oil image protection): Malaysia announced a number of new initiatives to fight growing criticism, in certain countries, about palm oil’s alleged negative environmental impact. To promote the commodity’s qualities at local and international level, the Government launched the slogan “Palm oil is God’s gift”, which is set to replace a domestic pro-palm oil campaign launched in 2019 (see MPPU May&Nov.’19). Reportedly, Government actions to safeguard the oil palm industry will concentrate on: i) promoting the nutritional benefits of palm oil internationally; ii) sponsoring scientific studies on the product’s properties; iii) supporting R&D activities to create new value-added products; iv) strengthening selected export markets, particularly India, China, Pakistan and the US; v) penetrating the African and Middle Eastern regional markets; and vi) pursuing regional trade consultations and bilateral free trade agreements. In July, Malaysia also announced that it was ready to follow Indonesia’s path of requesting WTO disputes consultations with the European Union regarding the latter’s planned ban on palm oil-based biofuel (see MPPU July’20).