18 PLANTATION & COMMODITIES @ AGROBiz | July-August. 2025
18 PLANTATION & COMMODITIES @ AGROBiz | July-August. 2025
From tree to trade
• Malaysia launches MSNR Trace, a digital platform to track rubber from plantations to export, ensuring transparency and sustainability.
• High FFB prices in 2024 are discouraging plantation owners from replanting old oil palm trees.
• Ageing palm trees are producing lower yields, affecting long-term plantation productivity.
MALAYSIA has taken a significant step in transforming its rubber industry through the official launch of the Malaysian Sustainable Natural Rubber( MSNR) Trace system, a digital platform designed to ensure end-to-end traceability of natural rubber, from plantations to finished products.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin described the initiative as a milestone that places Malaysia at the forefront of global rubber industry reform.
“ Malaysia is now at the forefront in championing the rubber industry’ s transformation towards sustainability,” he said at the launch event.
DIGITAL SHIFT IN RUBBER Developed by the Malaysian Rubber
Board( MRB), the MSNR Trace system consolidates various digital platforms, including PAT-G, RRIM Geo Rubber, RRIMniaga, RRIMestet, and MyLesen.
Together, these tools provide full-chain visibility of natural rubber( NR) movement, enhancing accountability and traceability throughout the value chain.
“ With technology and innovation like MSNR Trace, Malaysia is well-positioned to become a global leader in the production of NR and high-quality rubber products,” Chan added.
He noted that MRB stakeholders are now required to integrate with these systems, and strict enforcement will follow.
“ MRB will impose compound fines and license revocations on licensees who fail to comply with licensing conditions regarding the use of RRIMniaga, RRIMestet, and the MSNR Trace systems,” he said.
Legal consequences under the Malaysian Rubber Board( Licensing and Permit) Regulations 2014 may involve penalties of up to RM50,000 or imprisonment for up to two years.
SUSTAINABLE SOURCING
A long-standing issue in the rubber sector has been the absence of a unified traceability platform. Chan emphasised that addressing this gap was crucial, especially as international markets, such as the European Union( EU), demand proof of sustainable sourcing.
In 2024, the EU accounted for RM4.91 billion- or 15.6 per cent- of Malaysia’ s total rubber product exports.
Chan said:“ In this context, the introduction and enforcement of the MSNR system since January
GROWTH IN MOTION: Chan Foong Hin( centre) and Zairossani Mohd Nor( left) at the MSNR Trace launch.
2025 clearly demonstrates Malaysia’ s readiness and commitment to meeting international market demands, particularly in terms of sustainability and traceability.”
He also cited a major milestone:“ This commitment was reflected in the first export of MSNR-certified NR to the EU on Dec 12 last year, with 200 tonnes shipped to Slovakia and the Netherlands.”
MRB Director-General Datuk Zairossani Mohd Nor added that this progress reaffirmed Malaysia’ s position on the global stage.
“ The country’ s ability to maintain traceability, comply with international trade regulations, and drive continuous innovation makes Malaysia a strategic and reliable trade partner in the global rubber industry.”
Replanting setback
MALAYSIA’ S oil palm replanting efforts have hit a slump in 2024, with fresh fruit bunch( FFB) prices identified as a significant factor discouraging estate owners from replacing ageing trees, according to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
In Parliament, Johari explained that many plantations are reluctant to uproot older palms as current market prices offer steady, albeit declining, income streams.
“ The price of FFB is one of the key factors considered by plantation companies and oil palm estate owners when deciding whether to carry out replanting activities or not.
“ This is because they are still earning revenue from FFB sales, even though the FFB yield is at a very low level,” he told the Dewan Rakyat.
The national replanting rate has fallen to just 2.0 per cent this year, far below the annual target of 4 to 5 per cent.
Government data show that the average crude palm oil( CPO) price climbed to RM4,179.50 per tonne this year, up from RM3,809.50 in 2023. As a result, FFB prices also rose to RM875 per tonne compared to RM778 the year before.
Despite the earnings from older palms, Johari stressed the tradeoff: lower yields and future income losses.
“ Although plantation companies and oil palm estate owners are still earning revenue from selling FFB from old and unproductive palm trees, the overall productivity of FFB remains low, and this affects the income and capital of these companies and landowners,” he said.
Beyond prices, the minister also noted issues such as an ageing smallholder population, low youth participation in replanting, and concerns over income gaps during the early stages of replanting.
“ Although current FFB prices offer attractive short-term returns, long-term yield potential will be more secure if replanting is carried out in a planned manner,” Johari added.
“ Mature trees can usually yield up to 28 tonnes depending on good agricultural practices, but at 25 years and older, the yield drops to just four to five tonnes,” he said.- @ AGROBiz