PALM oil is a versatile ingredient found in a variety of products beyond the kitchen, including lipstick, soap and detergent.
It stands out as the most productive oil-bearing crop globally, yielding significantly higher quantities of vegetable oil per hectare annually compared to other popular oil-producing plants.
The palm oil industry in Malaysia holds immense significance, serving not only as a source of livelihood but also as a major contributor to the country's economy.
Malaysia exported around 24.5 million tonnes of palm oil and palm oil-based products in 2023, valued at over USD21 billion (RM95 billion). This contributed 2.97 per cent to Malaysia's total gross domestic product (GDP) in the same year, estimated to be worth US10.3 billion (RM46.5 billion).
Despite its economic importance, there have been claims about the environmental impact of oil palm cultivation. The industry faces challenges from protectionist policies with campaigns promoting "No Palm Oil" labels and highlighting human rights issues that have painted Malaysian palm oil in a certain light.
The EU, a major importer, has passed a law to phase out palm oil in biofuels by 2030 and also banned the sale of products linked to deforestation unless proven otherwise.
To highlight the industry's efforts in addressing environmental concerns and promoting sustainable practices, the New Straits Times made a short film about Malaysia's sustainable palm oil journey.
The oil palm cultivation area in Malaysia covers only 17 per cent of the country's total land area, while its forest cover extends over about 55 per cent, surpassing the 50 per cent commitment made at the 1992 Rio Earth Summit.
Since 2016, Malaysia has shown a decreasing trend in deforestation of primary forests. According to the latest World Resources Institute report, Malaysia's forest cover currently stands at 57 per cent, spanning the years 2020 to 2022.
Much of this conservation success is attributed to the palm oil sector's adoption of sustainability schemes such as the Malaysian Sustainable Palm Oil (MSPO) certification and the No Deforestation, No Peat, No Exploitation (NDPE) commitment.
The palm oil plantation industry in Malaysia also upholds the principles of no deforestation, no forced labour and compliance with international standards through the MSPO certification.
This scheme aims to enhance the industry's competitiveness and promote good sustainable agricultural practices. It prohibits open burning, disrupting wildlife habitats and pesticide use, while encouraging practices like mulching to increase soil moisture and yield.
Malaysia's palm oil sector has made significant strides in promoting sustainability and environmental conservation. By adhering to stringent international and local standards, as well as adopting responsible practices, the industry plays a vital role in preserving Malaysia's rich biodiversity and natural heritage.