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Malaysian palm oil exports to the United States rose 51.8 per cent to 93,000 tonnes for the January-May 2025 period, compared with 61,000 tonnes in the same period last year.
The Ministry of Plantation and Commodities said 65 per cent of Malaysia's palm oil exports to the US in 2024 were in the form of certified sustainable products used in high-value goods, while another 19 per cent consisted of palm stearin, a key ingredient in the food and personal care industries.
"Although the United States is not the primary market for Malaysian palm oil exports, the government believes that the new 25 per cent tariff imposed on Malaysia, which will take effect from 1 August 2025, still requires close attention to ensure the Malaysian market is not affected in future."
In a written reply uploaded to the parliament's website today, the ministry said: "MPOB is always alert and proactive in monitoring developments in international trade policy as part of efforts to ensure that the country's palm oil exports are not affected."
The Malaysian Palm Oil Board (MPOB) made the statement in response to a question from Datuk Suhaimi Nyawang (BN-Beaufort), who asked whether the 25 per cent tariff imposed by the US on Malaysia would affect global demand for the country's palm oil, as well as the ministry's efforts to ensure that the country's palm oil exports are not affected.
The ministry, through the Ministry of Investment, Trade and Industry, is holding ongoing negotiations with the United States to ensure fair, open trade that benefits both sides.
The government is undertaking various integrated efforts to ensure the country's palm oil exports remain unaffected and sustainable, including encouraging the transformation of the palm oil sector to focus on high-technology products such as oleochemicals, processed food ingredients and biofuels.
In addition, the government is also working to strengthen implementation of the Malaysian Sustainable Palm Oil (MSPO 2.0) certification to ensure that Malaysian palm oil meets international standards, particularly in environmental, social and governance (ESG) aspects, and to introduce the Smart Integrated Management System (SIMS), which allows full farm-level traceability for all palm oil produced.
The Ministry of Investment, Trade and Industry said two new free trade agreements had been signed, namely the Malaysia-United Arab Emirates Comprehensive Economic Partnership Agreement (14 January 2025) and the Malaysia-European Free Trade Association Economic Partnership Agreement (23 June 2025).
"These agreements open the way for wider market access for exported palm oil products, as well as helping to reduce tariffs, overcome non-tariff barriers and encourage foreign investment in the commodities sector," it said.
Overall, the Malaysian Palm Oil Board said the comprehensive measures taken by the relevant ministries and agencies are aimed at ensuring the Malaysian palm oil industry remains competitive, increasing exports, and maintaining Malaysia's reputation as a sustainable, transparent and ethical producer of palm oil.
"It is important to continue attracting the interest of developed countries such as the United States to keep importing Malaysian palm oil," it added.
Source: Bernama