@AGROBiz November/December 2025 | Page 18

18 PLANTATION & COMMODITIES @ AGROBiz | November-December. 2025

18 PLANTATION & COMMODITIES @ AGROBiz | November-December. 2025

Shielded from tariffs

• US tariffs do not affect Malaysian oil palm costs, as most inputs are sourced locally.
• Ministry plans new scheme to help smallholders replant older palms with possible loan subsidies.
• The PEACE Study, a collaboration with UKM, investigates the effects of palm oil on cardiometabolic risk, inflammation, the microbiome, and nutrigenomics.

MALAYSIA’ S oil palm industry is largely unaffected by recent US tariffs, as the Ministry of Plantation and Commodities( MPC) confirms that reliance on domestic sourcing of key inputs minimises cost impacts.

Its Minister, Datuk Seri Johari Abdul Ghani, said most materials used in oil palm planting, including fertilisers and chemicals, are sourced locally. In contrast, imported inputs such as NPK( nitrogen, phosphorus, potassium) fertilisers are not imported from the United States.
“ The tariffs have nothing to do with our oil palm plantations because most of the inputs are sourced domestically. Only some chemicals and fertilisers, including nitrogen, phosphorus and potassium( NPK) fertilisers, are imported. Still, these do not go through the United States,” he told the Dewan Rakyat, responding to a supplementary question from Datuk Seri Ismail Abd Muttalib( PN-Maran) regarding the Malaysia-US Agreement on Reciprocal Trade( ART).
Johari also outlined plans for a new scheme next year to offset the rising costs of replanting oil palms, particularly for smallholders who often struggle to secure financing.
“ Smallholders often have difficulty getting loans. So, I will try to meet the bankers to see if the money doesn’ t come from the government, perhaps the banks can help these smallholders to obtain loans by mortgaging their farms, and I would try to ask the government for an interest subsidy,” he said.
He added that the government might subsidise interest rates of up
STABLE OUTLOOK: Most oil palm inputs are sourced locally, shielding plantations from US tariffs.
to four per cent, and that discussions with the Ministry of Finance were ongoing.
Currently, the Smallholder Oil Palm Replanting Financing Incentive Scheme( TSPKS 2.0) offers a hybrid assistance of 50 per cent grant and 50 per cent loan, with RM100 million allocated for 2024 and RM50 million for 2025.
Responding to Datuk Dr Richard Rapu @ Aman Begri( GPS-Betong) on long-term replanting initiatives, Johari highlighted the importance of sustaining production.
“ The country would lose almost RM7 billion in export revenue if it does not implement the replanting of oil palm trees that are over 25 years old. Malaysia’ s oil palm replanting rate in 2024 was around 2.0 per cent, which is still low compared to the targeted oil palm replanting rate of four to five per cent per year,” he said.

Malaysia boosts palm science

MALAYSIA is progressing in sciencebased research on palm oil nutrition, with the Malaysian Palm Oil Board( MPOB) leading investigations into its nutritional content, bioactive compounds, and health effects.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the research aims to generate findings that meaningfully inform public health policies and dietary recommendations.
ADVANCING PALM OIL RESEARCH
“ These efforts are reinforced through strong partnerships with leading universities, hospitals and research institutions,” he said, highlighting the PEACE Study, a joint initiative between MPOB and Universiti Kebangsaan Malaysia( UKM).
“ This large epidemiological study examines how palm oil consumption influences cardiometabolic
risk, inflammation, microbiome and nutrigenomics in our population. The PEACE Study will provide Malaysia with an evidence-based foundation to shape dietary guidance, product standards and future investment decisions,” he added at the Nutrition Satellite Symposium, held as part of MPOB International Palm Oil Congress and Exhibition( PIPOC) 2025.
Johari’ s opening speech was delivered by the Ministry’ s secretary general, Datuk Yusran Shah Mohd Yusof. He highlighted MPOB’ s ongoing research on tocotrienols, carotenoids, and structured lipids, translating lab findings into consumer benefits.
“ Our commitment to research and innovation ensures that responsible practices in the field translate into measurable benefits in the kitchen, the clinic and the marketplace,” he said.
At the national level, the 18th
Special Meeting of the National Nutrition Council, chaired by the Health Minister, approved initiatives to incorporate red palm oil( RPO) into diets, targeting undernourished and vulnerable children.
This includes introducing RPO in school, hospital, and preschool menus, and distributing RPO-based biscuits through relevant ministries and agencies.
The event also saw the signing of 11 Memoranda of Agreements
INNOVATION IN NUTRITION: MPOB partnerships ensure research benefits translate from the lab to the community.
( MoAs) between MPOB and research institutions, formalising collaborations on studies of palm tocotrienols in wound healing, anti-cancer functions, organ protection, and metabolic health.
Participating organisations include Universiti Malaya, Universiti Sains Malaysia, UKM, Universiti Teknologi Malaysia, Universiti Teknologi Mara, Monash University Malaysia, and Cancer Research Malaysia.- @ AGROBiz