Palms 2030. Insights into Malaysia’s New Course for Palm Oil
The Malaysian Palm Oil Board (MPOB) has charted out a new course for the Malaysian palm oil industry under the guidance of Director General Datuk Badrul Hisham Mohd.
The Director General shared some insights with CSPO Watch into PALMS 2030 which is a broader transformation framework centred on five priorities — Productivity, Automation, Low Carbon, Marketability and Sustainability.
“The framework marked a fundamental shift in how the agency operates, with greater emphasis on responding to market needs, leading the industry and translating research capabilities into economic value.”
The Director General shared some insights with CSPO Watch into PALMS 2030 which is a broader transformation framework centred on five priorities — Productivity, Automation, Low Carbon, Marketability and Sustainability.
“The framework marked a fundamental shift in how the agency operates, with greater emphasis on responding to market needs, leading the industry and translating research capabilities into economic value.”
Director General of the Malaysian Palm Oil Board Datuk Badrul Hisham Mohd
"We can no longer simply respond to issues after they arise. MPOB needs to be closer to the market, act faster and be more willing to drive change," he said at a town hall session with MPOB staff.
The task ahead will not be an easy one for the MPOB but the Malaysian agency is up to the challenge according to Director General Datuk Badrul Hisham Mohd.
“Malaysian palm oil, even when certified under the Malaysian Sustainable Palm Oil (MSPO) standard, will naturally remain exposed to global market forces. MSPO is not a shield against market competition and it is never intended to be one. Prices and supply conditions for competing vegetable oils, as well as movements in fossil fuel prices and energy markets will continue to influence demand and purchasing decisions.”
This was a reference to a question where we asked the MPOB
“Why should Malaysian palm oil certified under MSPO be subject to global trade demands where excess soy production or cheaper fossil fuels can knock down demand for sustainable palm oil?”
This represents the biggest challenge for Malaysia where numerous market forces from its currency exchange to competing vegetable oils and fossil fuels impact the success of Malaysia’s ambition to produce palm oil sustainably.
A typical day at the market for Malaysia carries news reports like:
In addressing market pressures, Datuk Badrul Hisham Mohd stated that:
"Certification cannot eliminate price competition but it can strengthen the credibility, resilience and market position of Malaysian palm oil in a world where sustainability is becoming an increasingly important consideration.
The key principle is that verified sustainability should have value. If producers invest in better environmental management, traceability, social responsibility and good governance, those efforts should be recognised fairly when sustainability is used as a basis for market access or procurement decisions."
Beyond market access and sustainability requirements, Datuk Badrul emphasized that Palms 2030 also aims for the optimization of resources where accelerating technology and automation leads to increased productivity from farm to market.
Optimizing resources is important for Malaysia which has pledged to cap its planted acreage of oil palms as a commitment to sustainability.
This creates greater economic value from every acre of oil palm to benefit every Malaysian from the smallholder to the average citizen who has benefited from export revenues earned by the palm oil industry.
Downstream diversification which Palms 2030 focuses on will be important for Malaysia which exports predominantly refined palm oil to capture higher value markets.
Equally important is the Malaysian Sustainable Palm Oil (MSPO) certification scheme where the inclusion of smallholders has been a priority.
The Palms 2030 frame sees oil palm smallholders as an important dimension of Malaysia’s sustainability journey who should not be viewed solely through the lens of overseas market access according to Datuk Badrul.
He further distinguished Malaysian palm oil’s sustainability against the common accusations against palm oil as a commodity.
Where different agricultural feedstocks can demonstrate comparable environmental and social outcomes, their performance should be assessed using objective and verifiable criteria rather than broad assumptions about the commodity itself. This is consistent with the broader international trade principle that environmental objectives can be pursued while avoiding unjustified discrimination between similar products.
In a challenge to markets where trade restrictions based on sustainability questions Malaysia’s efforts to produce palm oil sustainably, Datuk Badrul Hisham Mohd said:
"Under the Palms 2030 pathway, science diplomacy is not about defending palm oil through rhetoric; it is about putting evidence at the centre of the conversation with an emphasis on transparent, proportionate, science-based and objectively verifiable sustainability requirements.
"Our position is that sustainability performance should be assessed based on evidence and comparable criteria, while avoiding unjustified discrimination between similar agricultural commodities."
CSPO Watch thanks the Director General of the Malaysian Palm Oil Board, Datuk Badrul Hisham Mohd for the insights into Palms 2030.
Published September 2026
The task ahead will not be an easy one for the MPOB but the Malaysian agency is up to the challenge according to Director General Datuk Badrul Hisham Mohd.
“Malaysian palm oil, even when certified under the Malaysian Sustainable Palm Oil (MSPO) standard, will naturally remain exposed to global market forces. MSPO is not a shield against market competition and it is never intended to be one. Prices and supply conditions for competing vegetable oils, as well as movements in fossil fuel prices and energy markets will continue to influence demand and purchasing decisions.”
This was a reference to a question where we asked the MPOB
“Why should Malaysian palm oil certified under MSPO be subject to global trade demands where excess soy production or cheaper fossil fuels can knock down demand for sustainable palm oil?”
This represents the biggest challenge for Malaysia where numerous market forces from its currency exchange to competing vegetable oils and fossil fuels impact the success of Malaysia’s ambition to produce palm oil sustainably.
A typical day at the market for Malaysia carries news reports like:
- Malaysian palm oil futures fell for a second consecutive session on Monday. The December contract on Bursa Malaysia declined 0.84% to 4,857 ringgit/t, or about $1,192/t.
- The market was pressured by weaker crude oil prices, a firmer ringgit and sluggish exports. Lower crude prices make palm oil less attractive as a biodiesel feedstock. https://ukragroconsult.com/en/news/malaysian-palm-oil-falls-on-weak-exports-and-lower-crude-prices/
- Malaysian palm oil futures ease as Sept 1–20 exports drop up to 25%, crude oil weakens and the ringgit firms.https://commodity-board.com/palm-oil-slips-on-weak-exports-and-softer-crude-is-the-rally-topping-out
In addressing market pressures, Datuk Badrul Hisham Mohd stated that:
"Certification cannot eliminate price competition but it can strengthen the credibility, resilience and market position of Malaysian palm oil in a world where sustainability is becoming an increasingly important consideration.
The key principle is that verified sustainability should have value. If producers invest in better environmental management, traceability, social responsibility and good governance, those efforts should be recognised fairly when sustainability is used as a basis for market access or procurement decisions."
Beyond market access and sustainability requirements, Datuk Badrul emphasized that Palms 2030 also aims for the optimization of resources where accelerating technology and automation leads to increased productivity from farm to market.
Optimizing resources is important for Malaysia which has pledged to cap its planted acreage of oil palms as a commitment to sustainability.
This creates greater economic value from every acre of oil palm to benefit every Malaysian from the smallholder to the average citizen who has benefited from export revenues earned by the palm oil industry.
Downstream diversification which Palms 2030 focuses on will be important for Malaysia which exports predominantly refined palm oil to capture higher value markets.
Equally important is the Malaysian Sustainable Palm Oil (MSPO) certification scheme where the inclusion of smallholders has been a priority.
The Palms 2030 frame sees oil palm smallholders as an important dimension of Malaysia’s sustainability journey who should not be viewed solely through the lens of overseas market access according to Datuk Badrul.
He further distinguished Malaysian palm oil’s sustainability against the common accusations against palm oil as a commodity.
Where different agricultural feedstocks can demonstrate comparable environmental and social outcomes, their performance should be assessed using objective and verifiable criteria rather than broad assumptions about the commodity itself. This is consistent with the broader international trade principle that environmental objectives can be pursued while avoiding unjustified discrimination between similar products.
In a challenge to markets where trade restrictions based on sustainability questions Malaysia’s efforts to produce palm oil sustainably, Datuk Badrul Hisham Mohd said:
"Under the Palms 2030 pathway, science diplomacy is not about defending palm oil through rhetoric; it is about putting evidence at the centre of the conversation with an emphasis on transparent, proportionate, science-based and objectively verifiable sustainability requirements.
"Our position is that sustainability performance should be assessed based on evidence and comparable criteria, while avoiding unjustified discrimination between similar agricultural commodities."
CSPO Watch thanks the Director General of the Malaysian Palm Oil Board, Datuk Badrul Hisham Mohd for the insights into Palms 2030.
Published September 2026