Plantation industries and commodities minister Mohd Khairuddin Aman Razali said the factors that contributed to the increase in value were rising prices of palm oil and other competing fats in the world market.

He said the ministry was confident that the palm oil export target of RM75 billion this year could be achieved with the support of its new programmes.

The programmes are additional initiatives in the form of matching grants of RM20 million through 65 sustainable oil palm growers cooperatives (KPSM) and matching grants of RM30 million to encourage investment in mechanisation and automation.

“These programmes will increase the purchase of machinery and mechanisation practices in the commodity industry. It is supported by the active involvement of KPSM and is expected to generate higher income for all oil palm entrepreneurs, including smallholders throughout the country,” he said in a statement today.

The Malaysian palm oil industry contributed RM73.25 billion of export revenue with a gross domestic product contribution of 3.6%. Malaysia also contributed 26% to world palm oil production and 34% to total world palm oil exports in 2020.