KUALA LUMPUR (Feb 25): Malaysia’s oil palm replanting remains sluggish, posing a long-term risk to the industry if left unchecked, Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani cautioned on Tuesday.

Progress has slowed and was significantly short of the recommended annual target amid the government’s push for replanting to boost productivity without expanding land use, Johari said at the Palm and Lauric Oils Price Outlook Conference and Exhibition.

“To secure future yields, this long-term commitment must begin now to ensure the sector’s continued growth and resilience,” Johari said. “This is especially crucial as Malaysia has pledged to prevent further deforestation for palm oil cultivation.”

In 2024, Malaysia replanted 114,000 hectares, or only 2% of the total planted area, versus 2.3% a year earlier. The annual recommendation is for 4%-5% of the total area to be replanted, or about 285,000 hectares each year.

Part of the effort requires that only high-quality planting materials are used in replanting, Johari said.

“Smallholders form a significant yet vulnerable segment of the palm oil industry due to their lack of scale… this makes them susceptible to dishonest practices by certain nurseries,” he flagged.

Johari said that some smallholders have been misled into purchasing inferior-quality seedlings instead of the preferred Dura and Pisifera hybrid essential for higher yields and productivity.

To safeguard the industry and the over 450,000 smallholders in Malaysia, the Malaysian Palm Oil Board will conduct random inspections to ensure nurseries provide genuine, high-quality seeds for replanting.

“The government remains committed to protecting the interests of both the industry and smallholders, ensuring that replanting efforts translate into sustainable, long-term growth,” Johari added.

Read also:
Plantation Ministry working with TNB, Energy Commission to boost RE grid connectivity, supply
Palm oil industry leaders call for sustainable practices in yield improvement
Bursa Malaysia Derivatives hits all-time high of 22.75 mil contracts in 2024 — Abdul Wahid
EUDR costs may drive demand shift from palm kernel oil to crude coconut oil, says Fastmarkets