KUALA LUMPUR: Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani's warning on stern action against companies discriminating against palm oil is the right move to show the world that Malaysia is taking its industry seriously.
Economists said that the suspected sale of food products with the words "No Palm Oil" written on the plastic packaging at a convenience store in Putrajaya was probably a result of foreign management in the local retail industry, which lacked understanding of national issues.
Nusantara Academy for Strategic Research senior fellow Dr Azmi Hassan said the raid by the Domestic Trade and Cost of Living Ministry on Thursday also served as a reminder to retailers to heed Johari's warning.
"This will send out a message to wholesalers and importers that products with these labels cannot be sold here. They have to repackage it, that is the least resellers or importers can do because this is discrimination against palm oil.
"What was done by Johari is the correct step. We begin this process with local retailers in Malaysia and slowly, this case will be brought up internationally," he said.
Universiti Kuala Lumpur's Business School analyst Associate Professor Aimi Zulhazmi Abdul Rashid said products with those labels should not be sold in the domestic market given the country's role as a global producer of palm oil.
"Lack of sensitivity may be the result of the involvement of foreigners in the retail market, especially in operating convenience stores.
"They may lack understanding on national issues and the importance of the palm oil industry to Malaysia.
"Our reliance on food imports from overseas, which amounts to almost RM70 billion annually and driven by escalating prices and erratic supply, may also contribute to the incident, with little priority on packaging," he said.
To prevent the matter from escalating, he said the Malaysian Palm Oil Board (MPOB) must work with trade associations to ensure greater awareness of the issues at hand.
"Mass media campaigns must be strategically implemented to emphasise the importance of the industry to the country.
"Indeed, working with government agencies, especially those in enforcement, must be conducted and MPOB also must continue to invest in creating awareness globally," he added.