Latest news with #RM186
The Sun
08-07-2025
- Business
- The Sun
US consumers ultimately the ones to bear increase in palm oil prices: Johari
KUALA LUMPUR: Malaysia will not be significantly impacted by the newly imposed US tariff as the country primarily export products to the US that cannot be easily sourced or substituted domestically. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the tariff hike announced on Monday – raising duties on Malaysian goods from 10% to a combined 25% – targets a range of exports, but Malaysia's unique position in the global supply chain offers some protection from the effects. 'We are not the only country affected by these measures. What I want to emphasise is that, out of our total exports valued at RM186 billion, only about RM20 billion are exported to the US. 'Within this RM20 billion, our main exports to the US include rubber products, such as rubber gloves, furniture and wood products, oleochemicals, including palm oil and cocoa. 'When it comes to palm oil specifically, there is essentially no alternative available in the US market. Soybean oil cannot be converted into the same oleochemicals that our palm oil products provide. 'If the US imposes a 25% tariff on our products, it will ultimately be American consumers who bear the additional cost,' he told reporters at Malaysia Palm Oil Council's trade networking visit with international buyers today. Using rubber gloves as an example, Johari stated that Malaysia is not the only producer; China and Vietnam also manufacture them, and their exports face similarly high US tariffs, in some cases even higher than those imposed on Malaysia. 'This creates a highly competitive environment. The same applies to furniture; many countries produce furniture, including Malaysia. 'Ultimately, buyers make their decisions based on design and quality. If our designs are unique and appealing, there will still be demand, even if tariffs raise the final price. 'If the US imposes tariffs of 10% plus 25% or 5% plus 25%, that simply becomes part of the cost for buyers,' Johari said. Touching on exports, Johari said that last year, 40% of Malaysia's palm oil exports were directed to North Africa, Sub-Saharan Africa and Asean markets, beyond Malaysia's traditional trading partners. Exports to North Africa increased by 63.5% in 2024, while Sub-Saharan Africa saw a 26% year-on-year rise during the first five months of 2025. He said that this growing reliance on Malaysian palm oil to meet edible oil requirements highlights the importance of strengthening long-term partnerships and ensuring efficient and stable supply chains. 'Each region represented here today has distinct drivers of palm oil demand. In North Africa, Egypt serves as a strategic re-export hub, supplying markets across the region. In Sub-Saharan Africa, demand is rising for industrial applications, particularly in food processing, whereas in Asean, rapid growth in refining and food manufacturing continues to drive the need for a high-quality, reliable palm oil supply.' Johari said that by supporting the development of the downstream sector, Malaysia aims to embed its palm oil more firmly into local and regional value chains, adding economic value beyond the supply of raw materials. 'This approach not only strengthens supply chain integration, but also encourages joint ventures, technology transfer and local processing partnerships, fostering a long-term, resilient and shared industrial growth.' At the networking session, Johari said that for many decades, Malaysia has been a top producer of palm oil in the world. The palm oil plantation area in this country covers roughly 5.7 million hectares across Peninsular Malaysia, Sabah and Sarawak. The commodity is an export-oriented sector for the Malaysian economy, with 15.4 million tonnes out of the 19.3 million tonnes, or 80% of the palm oil produced was exported in 2024.
The Sun
08-07-2025
- Business
- The Sun
US tariff hike on Malaysian goods to impact American palm oil importers
PETALING JAYA: The United States' decision to impose a 25 per cent tariff on Malaysian goods will primarily affect American importers of palm oil products, according to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. He explained that Malaysia exports key commodities such as oleochemicals, rubber gloves, timber, furniture, and cocoa products to the US. Johari noted that Malaysia's commodity exports to the US total RM20 billion annually, a fraction of the country's overall RM186 billion commodity export value. He highlighted that palm oil-based oleochemicals have no direct substitute in the US market, as soybean oil cannot replicate their properties. 'If the US charges us a 25 per cent tariff, ultimately it is the American people who will have to pay,' Johari said after attending the Malaysian Palm Oil Council (MPOC) Trade Networking Visit dialogue. He added that the Cabinet will review the tariff implications in an upcoming meeting. Malaysia is not the only country facing such tariffs, and Johari emphasised the need for adaptability in response to trade policy changes. The minister's remarks underscore the broader economic impact of protectionist measures on global supply chains. - Bernama
New Straits Times
08-07-2025
- Business
- New Straits Times
Johari: US has no substitute for Malaysian palm-based products
KUALA LUMPUR: The impact of the United States' (US) 25 per cent tariff on Malaysian products will fall on American consumers, especially for goods where no alternatives exist, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. The minister said there is no substitute for Malaysian palm oil in the US market, as soybean oil cannot be processed into oleochemicals in the same way as palm-based products. "What I want to emphasise is that out of our RM186 billion in exports, only about RM20 billion goes to the US. We export rubber products like rubber gloves, wood products including furniture, oleochemicals from palm oil, and also cocoa and chocolate. "I see this as a non-competition issue. If they charge us 25 per cent, ultimately it is the American people who will pay for it," he told the media after the Palm Oil Briefing and Industry Dialogue Session held here today. Johari added that global competition remains stiff in categories like gloves and furniture, but noted that Malaysian products can still stand out through unique design and high quality. "For rubber gloves, yes, we are not the only ones making them. China and Vietnam make them too. And their tariffs are even higher than ours. In fact, higher than what we face. So we compete and we fight. "Other countries also make furniture, and so do we. But when it comes to furniture, people usually buy based on design. If we have good designs, people will want to buy them," he said. Johari said that with nearly 190 countries globally, Malaysia should not be discouraged by tariffs from a single nation. Instead, the country must stay flexible and responsive to changing trade dynamics, the minister added.
New Straits Times
28-06-2025
- Business
- New Straits Times
Malaysia targets 'low-risk' EU status to tackle deforestation rule
KUALA LUMPUR: Malaysia's newly established special committee on the European Union Deforestation Regulation (EUDR) is examining how countries like Thailand attained a low-risk classification. This status allows them to export forest-based products to the EU with fewer restrictions. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the committee includes his ministry, the Natural Resources and Environmental Sustainability Ministry, and the Investment, Trade and Industry Ministry. It will coordinate efforts to help Malaysia secure low-risk status for forest-based product exports. "The first step is to review and understand why Malaysia is categorised as standard risk, while countries like Thailand have achieved a low-risk status. "We need to identify the differences and work on improving them. Eventually, we too will attain a low-risk classification. "At present, 30 per cent of our exports are subject to sampling and inspection. "To facilitate exports, we must upgrade from standard risk to low-risk. "Once we achieve low-risk status, our products will enter international markets more easily." He said this after attending the Titiwangsa Umno delegates' meeting. Johari, who chairs the committee, said that to attain low-risk status, Malaysia must align its forest governance, certification systems and monitoring practices with international standards. He added that cooperation from state governments will be crucial, given their role in forest land management. Asked when Malaysia might achieve low-risk status, Johari said: "If possible, as soon as possible, but we need to do it right." "Some areas may have exceeded deforestation thresholds, so they will need to be reviewed carefully." On June 26, the government formed a special committee to spearhead Malaysia's response to EUDR, aiming to maintain EU market access and strengthen sustainability compliance across key export sectors. It held its first meeting in Putrajaya on June 26, bringing together officials and technical experts to align national policies, implementation strategies and data systems with EUDR requirements. The committee will also serve as the central platform for Malaysia's engagement with the European Commission, including the submission of official datasets, policy updates, and participation in technical exchanges. This whole-of-government effort underscores Malaysia's commitment to sustainability across key commodities — including palm oil, rubber, timber and cocoa — which collectively generated RM186 billion in export value last year.
New Straits Times
21-06-2025
- Business
- New Straits Times
Malaysia exploring new palm oil markets amidst geopolitical conflicts
KOTA BARU: The government is exploring new markets for Malaysia's palm oil in an effort to reduce the nation's reliance on major exporting markets affected by geopolitical conflicts. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the ongoing Israel-Iran crisis and the Russia-Ukraine conflict have disrupted export shipments to certain zones. "Malaysia currently exports goods worth RM186 billion annually to global markets, including palm oil, but part of these markets are now considered high-risk due to armed conflicts. "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, adding that the country is currently trading with nearly 80 nations, with plans to expand its reach even further. Speaking to reporters after attending the 'Dialogue with KPK' programme at the Mara Poly-Tech College, Kota Baru here today, the minister also urged plantation operators and smallholders to work closely with the government to ensure the resilience of the national commodities sector on the global stage. He said planters and operators must work with the government to address challenges at the international level. "The European market is increasingly emphasising environmental sustainability and biodiversity-friendly practices in palm oil procurement. "To enter their markets, we must prove that our plantations meet their standards, comply with sustainability principles and preserve biodiversity," he said. Johari said that providing good service and meeting buyer requirements should be a priority to help turn new buyers into long-term customers. "We are asking them to buy more from us, but the service we provide is just as important," he said. — Bernama
