KUALA LUMPUR: Almost RM10mil is allocated to improve Malaysia’s palm oil perception in Europe, says Deputy Plantations and Commodities Minister.
While Budget 2025 has allocated RM15mil to improve palm oil perception, Datuk Chan Foong Hin said that RM5.625mil will be used for consumer information campaigns in Europe, while another RM4.3mil will be used for lobbying for palm oil.
Chan also said that the closure of Malaysian Palm Oil Board (MPOB) offices abroad was made after thorough consideration.
A few members of parliament have proposed to reopen these closed Malaysian Palm Oil Board (MPOB) offices.
"Although the office in Brussels has been closed, efforts to address the negative perception of Malaysian palm oil in Europe continue through various strategic approaches.
“Previously, the closure of MPOB offices abroad was part of the government's initiative to control spending prudently,” he said on Monday (Nov 18).
However, during the debate of the Supply Bill 2025, many Members of Parliament suggested that the MPOC reopen a regional office in Europe to address the negative perception of Malaysian palm oil.
Chan added that the ministry has hired social media influencers to raise awareness among consumers in the European market.
“Efforts to promote and provide education to other countries are still ongoing through strategic efforts with MPOC.
"Currently, there are five MPOC offices still operating abroad, and MPOB has only one office in Shanghai, China,” he said.
Moving on to cocoa, Chan quipped that he was surprised to observe cocoa’s newfound popularity, as at least 10 MPs addressed cocoa issues.
He said that while 350,000 ha of former cocoa land has been converted to other commodities, the current planted area for cocoa is at 6,123.07 hectares.
“This will increase following the interest from estates, as their large plantation companies are interested in new cocoa plantings,” he said, listing two companies, United Melaka – a listed company and SLDB - a Sabah GLC.
To rejuvenate the cocoa industry in Malaysia, Chan said that the ministry is promoting a ‘farm to table’ concept and other incentives to propel the cocoa industry.
However, he highlighted that while Malaysia’s cocoa industry is moving towards a premium level, the issue is encouraging more to venture into cocoa cultivation.
The cocoa industry still lacks a mature ecosystem, he said and involvement of large plantation companies is important to advance the sector.
He also noted that through the research and development by the Malaysian Cocoa Board, 54 commercial cocoa clones are produced.
The ministry, he said, will organise the Malaysian International Cocoa Fair (MICF) soon next May in Sabah, Kota Kinabalu.
Touching on the kenaf industry, Chan said that the National Kenaf and Tobacco Board provides a Cluster Farm Programme Incentive of RM3,800 per hectare on a one-off basis to encourage the involvement of the private sector in the cultivation of kenaf.
He added that there are strategic partnerships with state governments to create sustainable land banks for kenafs.
“Other methods include developing quality seeds and more. However, the challenge in kenaf cultivation is expansion.
“There is reluctance by plantation companies or cultivators to convert from other commodities for kenaf, which is relatively new,” he said.
