KUALA LUMPUR: Malaysia will continue to prioritise increasing yields and no longer contribute to deforestation through palm oil cultivation, according to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He said the existing 5.7 million hectares of land is sufficient for the country's needs.
"The palm oil industry is a significant economic driver for Malaysia, supporting various sectors and benefiting a wide spectrum of stakeholders, from rural farmers to market leaders.
"Malaysian palm oil covers 5.7 million hectares, which accounts for only 0.1 per cent of global agricultural land, but contributes an impressive 20 per cent of the world's edible oil and fats exports.
"So, our focus will now shift towards enhancing yields, promoting sustainable production, and maximising value, rather than expanding land usage," he said in his opening address at the Oils and Fats International Congress (OFIC) 2024 today.
Johari said his ministry is working to maintain Malaysian palm oil as the preferred edible oil to ensure the country continues to be a reliable supplier to its trading partners.
He added that locally-developed certification scheme, the Malaysian Sustainable Palm Oil (MSPO), is able to address the main global sustainability criteria, through product traceability, deforestation-free, land title legitimacy and responsible labour practices.
He noted that as of Aug 2024, 4.6 million hectares equivalent to 81.24 per cent of the palm oil plantations in Malaysia are MSPO certified, underscoring the pledge to sustainably-produced agricommodities.
Johari also pointed out that the circular economy presents various opportunities for the palm oil industry as the country explores innovative strategies to minimise waste, maximise resource efficiency, and contribute to a more sustainable future.
However, he acknowledged that while resources show signs of depletion, the adoption of a circular economy comes with its own challenges, encompassing technical, economic and social factors.
"The circular economy model I have in mind for the palm oil industry would revolve around increasing operational efficiency in managing waste with investment in new technologies and infrastructure to convert waste to energy.
"In that respect, we do not expect to face the typical problems that are associated with recycling such as segregating waste, as well as adequacy of supply."
He added that industry players must take it upon themselves to pursue opportunities in and implement a cost-competitive circular model instead of a linear one.
Nevertheless, Johari said the applications of the circular economy model in the palm oil industry are plentiful.
This includes the conversion of waste such as empty fruit bunches (EFB), mesocarp fiber, and palm kernel shells into biomass energy.
He noted that EFB and the oil palm trunk can also be repurposed as mulch to improve soil conditions.
"Additionally, palm oil mills generate effluent, which can be converted into energy through methane capture.
"Integrating these organic materials into the agricultural cycle creates a closed-loop system. This will enable Malaysia to reduce reliance on fossil fuels and support Malaysia's goals in achieving net-zero emissions by 2050," he added.
As such, Johari said the palm oil industry stands at a critical juncture, demanding a paradigm shift towards an evidence-driven approach.
He noted that while there has been a growing call for increased attention and funding for research and development (R&D), the true value of these investments lies in the adoption and implementation of ground-breaking discoveries.
"For the industry to thrive sustainably, it is essential that scientific advancements are not just pursued but fully integrated into practice," he said.