KUALA LUMPUR: The world’s top three palm oil producers will collaborate to bring their case to the European Union over its Deforestation-Free Regulation set to come into force in January 2025.
Prime Minister Anwar Ibrahim said his Thai counterpart, Srettha Thavisin, has assured him his country will collaborate with Malaysia and Indonesia to advocate for the palm oil industry’s growth and sustainability.
“I have alluded to earlier working with Indonesia and I’m pleased that the new prime minister of Thailand has given me the assurance that Thailand will come on board to work together with Malaysia and Indonesia.
“Hopefully, other countries will also come on board in presenting our case, particularly to the European Union,” he said at the MPOB International Palm Oil Congress and Exhibition (PIPOC 2023) here today.
Thailand ranks as the third-largest producer of palm oil globally, behind Indonesia and Malaysia. The backbone of Thailand’s palm oil sector is made up of small-scale oil palm farmers, who account for about 70% of the nation’s production.
Anwar also said there will be an increase in global demand for edible oils as the world population reaches 10 billion by 2050.
“Apart from palm oil’s high yield, its long economic life span, between 25 and 30 years, ensures a reliable supply of palm oil to the world,” he said.
Anwar also launched the Sawit Intelligent Management System (SIMS) to facilitate the transaction of data management along the supply chain.
“SIMS aims to promote self-regulation, reduce government oversight and provide user-friendly features, enhanced security, and valuable decision-making insights,” he said.
Anwar said it is one of Malaysia’s initiatives to modernise its palm oil industry by integrating advanced technologies that align with the rapid advancements of the Fourth Industrial Revolution (IR 4.0).