MALAYSIA’ S palm oil industry is set to benefit from enhanced market access and recognition, following the signing of the Malaysia-European Free Trade Association Economic Partnership Agreement( MEEPA). The agreement, formalised on June 23, introduced tariff reductions of up to 40 per cent for Malaysian palm oil exports under a tariff rate quota mechanism.
These benefits, however, are conditional on compliance with the Malaysian Sustainable Palm Oil( MSPO) certification. This move strengthens the role of MSPO as a critical standard for sustainability
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and market access.
“ The Malaysian Sustainable Palm Oil( MSPO) certification is established as a prerequisite for accessing these reduced tariffs, positioning MSPO as a key enabler of improved market access for Malaysian palm oil exporters to European Free Trade Association( EFTA) member States, namely Switzerland, Norway, Iceland, and Liechtenstein,” the Ministry of Plantation and Commodities( MPIC) said in a statement.
Beyond tariff advantages, MEEPA also elevates Malaysia’ s standing in the global conversation on responsible palm oil trade.
REINFORCED CONFIDENCE
The agreement includes a Joint
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Statement on Sustainable Palm Oil, underscoring international recognition of MSPO and reinforcing confidence in Malaysia’ s efforts toward producing palm oil in an ethical and environmentally sound manner.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani described the signing as a milestone not only for trade but also for broader sustainability negotiations.
“ Malaysia remains fully committed to driving global progress in sustainable, responsible, and deforestation-free palm oil trade, with MSPO at the centre of these efforts,” he said.
The MPIC further highlighted that the MEEPA agreement delivers three strategic outcomes: lower
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tariffs for MSPO-certified palm oil, international recognition of MSPO as Malaysia’ s national sustainability standard, and an expanded commitment to traceability and deforestation-free supply chains.
The deal also serves as a benchmark in Malaysia’ s ongoing free trade talks with the European Union. According to MPIC, the collaboration between the Ministry of Investment, Trade and Industry( MITI) and MPIC was instrumental in securing this recognition from EFTA member countries.
For Malaysia’ s palm oil sector, from smallholders to major exporters, MEEPA signals a new phase of competitiveness in environmentally conscious markets worldwide.
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Reaching out to Africa AFRICA’ S GROWING APPETITE: Malaysia will be eyeing more regional integration as demand for processed palm oil increases.
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MALAYSIA is stepping up efforts to reposition its palm oil sector for stronger growth, with a clear emphasis on development in the Sub-Saharan and North African regions.
Speaking at the inaugural Malaysian Palm Oil Council( MPOC) Trade Networking Visit dialogue, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani stated that demand for Malaysian palm oil is increasing, particularly in industrial segments such as food processing.
“ To meet these evolving needs, Malaysia is refining its market strategies to support sectorspecific growth, foster deeper commercial linkages, and ensure long-term relevance across diverse regional markets,” he said.
Trade data reinforces this momentum. Palm oil exports to North Africa grew by 63.5 per cent in 2024, while Sub-Saharan Africa
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recorded a 26 per cent year-on-year increase in the first five months of 2025.
Johari pointed out that Egypt remains a crucial re-export hub for the region, enabling Malaysian products to reach broader markets.
As part of the country’ s push for net-zero emissions by 2050, Malaysia is also seeking to integrate sustainability into its commodity supply chains. While renewable energy and emissions control remain key, Johari acknowledged that carbon dioxide removal strategies will form the next pillar of climate action.
PALM OIL PROSPECTS
The dialogue brought together 56 buyers from across the Middle East, Africa, ASEAN, and Central Asia, aiming to strengthen Malaysia’ s profile as a reliable supplier of sustainably produced palm oil.
Johari added:“ The growing demand for value-added palm oil
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applications, such as speciality fats, oleochemicals, and food ingredients, offers tremendous potential to deepen Malaysia’ s engagement in key markets.”
To support this shift, the ministry is promoting more downstream activities that will enable Malaysia to advance up the value chain. This includes supporting joint ventures, local processing partnerships, and technology transfer initiatives in key markets.
“ This approach not only strengthens supply chain integration but also encourages joint ventures, technology transfer, and local processing partnerships, fostering long-term resilience and shared industrial growth,” he said.
With evolving consumer trends and regional industrial growth, Malaysia’ s palm oil sector is positioning itself not just as a raw material exporter but as a strategic value partner across emerging markets.- @ AGROBiz
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