Malaysia ready to meet Pakistan's growing palm oil demand: Johari Ghani

KUALA LUMPUR: Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani has reaffirmed Malaysia's readiness to meet Pakistan's growing demand for palm oil with high-quality and sustainable products.

This was conveyed at the 7th Pakistan Edible Oil Conference (PEOC) 2025 recently, according to the Malaysian Palm Oil Council (MPOC).

Recapping the minister's official visit to the republic last week, MPOC said Johari highlighted Malaysia's commitment to sustainable palm oil through initiatives like the Malaysian Sustainable Palm Oil (MSPO) certification.

He emphasised Malaysia's position as the world's second-largest producer of palm oil, contributing over US$20 billion annually to its economy and supporting nearly one million livelihoods.

"The minister underscored the significant growth of Pakistan's US$115 billion food sector, which is projected to expand by 7.5 per cent over the next five years, presenting opportunities for Malaysian palm oil and specialty fats to drive innovation and meet advanced industry needs," MPOC said in a statement today.

Johari also highlighted Malaysia's strength in research and development (R&D), offering tailored solutions to enhance product quality for Pakistan's food industry.

He noted the potential for palm-based oleochemicals to support Pakistan's personal care and home care sectors, contributing to the diversification of its manufacturing capabilities.

On the sidelines of the conference, Johari took part in a roundtable discussion with 28 key stakeholders from Pakistan's oils and fats sector.

They included chairmen of the Pakistan Vanaspati Manufacturers Association, Pakistan Edible Oil Refiners Association and All-Pakistan Solvent Extractors Association.

The discussion focused on strategies to boost Malaysia's market share in Pakistan's edible oil imports and ensure a reliable supply of sustainable, MSPO-certified palm oil.

The dialogue also explored opportunities to expand Malaysian palm oil exports to Pakistan and facilitate technology transfers for the downstream industry.

"The Pakistan industry also suggested that Malaysian suppliers adopt an ex-tank sales model, a trade practice already common in Pakistan.

"Adopting this approach would not only help manage price volatility and reduce financial commitments but also align with local market preferences, thereby positioning Malaysian suppliers to strengthen their foothold and increase their market share in Pakistan's edible oil sector," it added.

MPOC chief executive officer Belvinder Sron emphasised the vital role of Pakistan as a strategic market for Malaysian palm oil.

She said Pakistan imported 860,260 tonnes of palm oil and related products in 2024, a significant increase from 753,759 tonnes in 2023.

"At its peak Malaysia's palm oil exports to Pakistan reached an impressive 2.1 million tonnes in 2010, making Pakistan one of our most significant markets at the time.  

"Pakistan remains among the top 10 buyers of Malaysian palm oil and has always maintained a close relationship with Malaysia.

"Through this visit, we aim to strengthen our longstanding partnership and further expand our market share in this important region," she said.

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