January-February . 2025 | @ AGROBiz

MPIC cracks down on anti-palm oil product labels

The ministry emphasised its determination to protect the reputation of palm oil , a key national commodity , by ensuring that such misleading labels are removed from the market . In a recent statement , MPIC announced that the Domestic Trade and Cost of Living Ministry ( KPDN ) will no longer tolerate any DLAPO-related activities . The ministry outlined its strategy to enforce strict measures along the entire product supply chain .

“ Strict action in accordance with the current regulations in force will be taken against any party found guilty along the product supply chain .

“ KPK will always provide strong support and continuous cooperation with KPDN in efforts to combat the discriminatory labelling of palm oil ,” MPIC said in a statement .

Despite the implementation of regulations under the Trade Description Act 2011 , which came into effect on March 15 2022 , several outlets continue to market products with DLAPO . Officials noted that the two-year grace period offered ample time for all parties to comply by voluntarily removing such products from shelves .

“ The two-year grace period should have been enough for the parties involved to take appropriate action , such as voluntarily removing DLAPO products from the shelves . 1024 days have passed since the regulations were first introduced .

“ Thousands of inspections have been carried out by KPDN throughout the country starting March 15 , 2022 , and the ministry found that there are still premises that sell products with DLAPO ,” MPIC said .

This robust crackdown underscores the government ’ s commitment to fair trade practices and consumer protection . By insisting on compliance with existing regulations , MPIC aims to eliminate discriminatory practices in the palm oil sector , ensuring that misleading labelling does not distort consumer choice or undermine the industry ’ s integrity .

THE Ministry of Plantation and Commodities ( MPIC ) is prioritising mechanisation and automation to address the ongoing labour shortage in the palm oil industry .

Deputy Plantation and Commodities Minister Datuk Chan Foong Hin stated that while the transition would take time , the government does not intend to rely on foreign labour in the long run .

“ Over the long term , we should aim for more mechanisation and automation ,” he said during a press conference recently .

He added that Budget 2025 includes incentives to encourage industry players to adopt these technologies , reinforcing the government ’ s long-term strategy .

However , Chan acknowledged that foreign labour quotas might still be considered based on industry needs .

MALAYSIA ’ S palm oil industry registered significant gains in 2024 , with the average crude palm oil ( CPO ) price climbing by 9.7 per cent to RM4,179.50 per tonne from RM3,809.50 per tonne in 2023 .

Notably , the monthly average price peaked at RM5,119.50 per tonne in December 2024 , while the daily average hit its highest mark at RM5,333.50 per tonne on December 6 of last year .

Speaking at the Palm Oil Economic Review and Outlook Seminar 2025 , Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani , whose opening remarks were delivered by his deputy Datuk Chan Foong Hin , highlighted the broader impact of these price increases .

“ This significantly increased total oil palm products export revenue by 15.1 per cent to RM109.3 billion in 2024 from RM94.9 billion in 2023 ,” he stated .

“ The one-time exception for the quota was given for around 60,000 workers last year , but for this year , it depends on the industry feedback whether it ’ s urgent or not ,” he said .

On Indonesia ’ s decision to delay its B40 biodiesel mandate , Chan noted that Malaysia is not under

In addition to the price surge , export volumes also showed robust growth . The total export of palm oil and palm-based products reached 26.66 million tonnes in 2024 , compared to 24.49 million tonnes in 2023 — an increase of 8.9 per cent .

Among the top six export markets were India , China , the European Union , Kenya , Turkiye , and the Philippines , collectively accounting for 50.7 per cent of Malaysia ’ s palm oil exports for the year .

Domestic production has kept pace as well , with the Malaysian palm oil industry producing 19.3 million tonnes of CPO in 2024 , a 4.2 per cent rise from 18.55 million tonnes in 2023 .

This expansion comes as the market outlook remains positive , supported by stable supply-demand dynamics and an anticipated recovery from labour shortages .

pressure to increase domestic palm oil consumption for biodiesel .

“ Although Malaysia and Indonesia have their differences in the sector , we rely highly on export activities ,” Chan said , emphasising that exports remain the country ’ s primary focus . – @ AGROBiz