KUALA LUMPUR: Malaysia remains optimistic and stands ready to adjust its palm oil export strategy in response to new tariff measures imposed by the United States said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He noted that Malaysia’s export tariff to the US is now set at 10% for a 90-day pause period, aligning with the rate imposed on Indonesia, a significant reduction from the previous rates of 24% for Malaysia and 32% for Indonesia.
“The US market is not our only focus. What’s important is that we continue to produce high-quality products. International companies such as Nestlé are not merely seeking low prices, they prioritise quality to safeguard their brand reputation,” he told the media after a memorandum of understanding signing ceremony between Malaysian Sustainable Palm Oil (MSPO) and Nestlé Malaysia here today.
Johari disclosed that Malaysia’s exports to the US are projected to reach RM21 billion this year, with palm oil products contributing RM4.9 billion.
He added that rubber exports, including gloves, account for RM8.2 billion, furniture RM6.5 billion, and cocoa-based products such as cocoa butter RM1.6 billion.
“We must remember that the US is not Malaysia’s only market, and we cannot rely solely on one destination. Any excess export capacity can be redirected to other markets.”
Johari urged Malaysian exporters to place greater emphasis on producing high-quality products at competitive prices to strengthen their global market position.
In a related development, the minister highlighted the government’s commitment to sustainability and inclusivity within the country’s palm oil value chain.
He emphasised that about 450,000 smallholders are the backbone of the sector and they must not be excluded from sustainability initiatives.
“Unlike some international certification schemes that often overlook smallholders, the MSPO positions them as a key element, and the government also supports them by covering the cost of certification audits,“ he said. – Bernama
