Middle East, Ukraine wars force Malaysia to seek new palm oil markets

KOTA BHARU, Malaysia (MNTV) — Malaysia is exploring new markets for palm oil to reduce the nation’s reliance on major markets affected by geopolitical conflicts, reports Free Malaysia Today.

Plantation and commodities minister Johari Ghani said the ongoing Israel-Iran crisis and the Russia-Ukraine conflict have disrupted export shipments to certain zones.

He said Malaysia exports goods worth 186 billion Malaysian ringgit ($43.7 billion) annually to global markets, including palm oil. “Part of these markets are now considered high-risk due to armed conflicts,” he said. 

“As such, we are exploring new markets, namely, countries that have yet to purchase Malaysian palm oil or cooking oil. This is crucial to ensure that our export levels remain stable,” he said.

Johari said Malaysia is currently trading with nearly 80 nations and has plans to expand its reach even further.

He urged plantation operators and smallholders to work closely with the government to ensure the resilience of the national commodities sector on the global stage.

“The European market is increasingly emphasizing environmental sustainability and biodiversity-friendly practices in palm oil procurement.

“To enter their markets, we must prove that our plantations meet their standards in complying with sustainability principles and preserve biodiversity,” he said.

Johari said providing good service and meeting buyer requirements should be a priority to help turn new buyers into long-term customers.