KUALA LUMPUR: Halal Development Corporation Bhd (HDC) has supported Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani's call to incorporate Malaysian Sustainable Palm Oil (MSPO) compliance alongside Halal certification as requirements for the marketing of palm oil.
HDC said sustainable palm oil practices should match Halal standards as it shows Malaysia's commitment to Islamic principles and the environment.
The synergies between Halal certification and MSPO represent a significant opportunity for the palm oil industry, said HDC chairman Khairul Azwan Harun.
"We believe that by promoting sustainable practices in palm oil production, Malaysia can further enhance its position as a leading supplier of halal products worldwide," he said in a statement.
Despite minor fluctuations, the global demand for halal-certified palm oil derivatives and byproducts have stayed strong, maintaining a steady course amid changing market dynamics.
In 2022, RM2.79 billion worth of halal palm oil was exported out of RM59.46 billion total palm oil exports.
The likes of India, China, Japan, Korea and various European nations such as the Netherlands are increasingly seeking halal-certified palm oil ingredients for a diverse range of products including food, cosmetics, and pharmaceuticals.
In October 2023, HDC and the Malaysian Palm Oil Certification Council (MPOCC) signed a Memorandum of Understanding (MoU) outlining the co-operation and facilitate collaboration in the areas of cross-promotion, information exchange and exploring of opportunities to develop especially on sustainability related initiatives in both palm oil and halal industry.
"In our trade promotion efforts overseas, we have observed a substantial demand for halal- certified palm oil byproducts," Azwan said..
"We anticipate this year and onwards to see trades in halal palm oil by products and derivatives to grow significantly," he added.
By aligning MSPO compliance with halal requirements, Malaysia can solidify its position as a global leader in sustainable palm oil production while catering to the growing demand for halal products across various markets.