Welcome Remarks by YBHG. Datuk Mohamad Helmy Othman Basha Chairman of Malaysian Palm Oil Board for Palm Oil Economic Review and Outlook Seminar (R&O) 2026

Assalamualaikum W.B.T.
Good Morning and Salam
Malaysia MADANI.

It is with great pleasure that I warmly welcome all of you to the Palm Oil Economic Review and Outlook Seminar 2026
Your presence today signifies more than attendance at an annual gathering. It reflects a shared commitment among policymakers, researchers, industry leaders and practitioners to safeguard the stability, competitiveness and long-term sustainability of Malaysia’s palm oil industry at a time of heightened global uncertainty.
The Malaysian oil palm industry is not merely a commercial sector
It is a complex and interconnected ecosystem that supports rural livelihoods, underpins national development and contributes significantly to Malaysia’s economic resilience.
Decisions taken within this ecosystem have far-reaching implications, extending beyond producers and exporters to issues of food security, employment, technological advancement and environmental stewardship.
It is precisely because of this interconnectedness that informed, evidence-based decision-making is so critical.
Over the years, this seminar has evolved into a cornerstone annual platform for strategic engagement, rigorous knowledge exchange and forward-looking dialogue. The depth of analysis and quality of discussion generated here have consistently informed industry strategies and institutional responses.
As we look ahead to 2026 and beyond, it is increasingly evident that traditional approaches are no longer sufficient. The industry must be guided by a more holistic and anticipatory perspective, one that integrates market intelligence, scientific research, regulatory awareness and operational realities.
Recognising the growing scope and complexity of the challenges confronting the oil palm sector, the Malaysian Palm Oil Board (MPOB) has deliberately enhanced the structure of this year’s seminar.
For the first time, the programme has been expanded from a one-day format to a comprehensive two-day engagement. This reflects our recognition that the issues before us ranging from market access and compliance readiness to productivity, inclusivity and resilience require deeper analysis, sustained dialogue and closer collaboration among stakeholders.
Intuitively, we know that market intelligence, scientific research, regulatory awareness and operational realities must inform our every action, if we want to see growth and change in the future.
And it sounds really proactive in forums such as this, when we speak about what we are working on.
However, the trouble is, while it is clear what we must do, the pace of change has been glacial – we are not acknowledging what is in front of us, and we are not doing enough about it.
What do I mean? The reliance and utter dependence on foreign labour
The oft-heard comment is, “It is MPOB’s job to find solutions”, or “the government should take the lead”.
Another comment: “it’s too hard”. Or, “it’s impossible”. The terrain, the type of work, the weather … there are any number of excuses why things have not changed much since the industry began. And here we are, talking. Again. With not much to show for progress.
This is exactly the kind of attitude that will get us nowhere.
(i) We are quick to talk about the impossibility of finding mechanised harvesting solutions. Meanwhile, … in China, robots are already performing as backup 12 dancers in concerts. There are already robots that can undertake micro tasks and production line work in a manufacturing factory

(ii) We say that we will always need foreign workers because nobody here wants to do that kind of work. So, what happens when foreign workers don’t want to do the work too? Or when Government regulations become so stringent, in order to protect the local economy and reduce the outflow of ringgit? What will we do then? Besides lobbying the government?
I know that there are some companies that are at least making an effort, and for that I applaud you, but what we have done so far, what we have achieved so far, is just not enough.
Now, the sessions yesterday addressed a range of macrolevel, regulatory and structural issues that will shape the long-term trajectory of the palm oil sector. One was sustaining productivity despite labour constraints.
But, think about this: as an industry, we are now living with labour constraints. The problem is already here. Each and every one of us is jumping through hoops to meet our labour requirements. And yet, somehow, I sense, we are not galvanised into action, to look for solutions.
Now, I am just going to throw this out there for you to think about. Is it time to redesign the playbook from the start? What do I mean by this?
Our fields today are designed for manual labour. For men and women, with minimal mechanical support, walking between rows of trees, maintaining palm circles, or spraying or stacking or harvesting.
Somebody a hundred years ago designed the field based on know-how available then. And today, more than 100 years later, we are doing things almost the same way
To design an operation for mechanisation or automation, we may need to rethink how we lay out a field. How we plant seedlings. How we plan to harvest.
These are ideas that we must surely explore over the next two days, so we can plan for a better future.
While looking for solutions to bring the industry into the 21st century, another area we must emphasise is Quality
One critical fact we must keep in mind when we talk about quality is that, from the consumer’s perspective,quality is food safety. They are two sides of the same coin. So yes, 3MCPD, GE … or MOSH MOAH … all of it translates very simply to “unsafe”.
Consumers generally understand headlines and not details. A couple of well-placed headlines that palm oil is unsafe would send ripples through our entire industry. And we would have to spend time and resources defending and explaining ourselves.
Remember that there are already existing negative perceptions about palm oil all over the world – even here in Malaysia. Thus, a negative story about food safety would spell even more trouble. Trouble we can ill afford when the competition is much more aggressive, and when we are easily displaced.
We all know that these contaminants can be minimised if we exercise more care, and also, if we do things differently. We just have to do it.
I am honoured that this seminar will be officiated by Yang Berhormat Datuk Seri Dr. Noraini Ahmad, Minister of Plantation and Commodities, reflecting the continued recognition of the palm oil industry as a strategic pillar of Malaysia’s economy.
Although the industry contributes only about 3% to Malaysia’s Gross National Product, it’s importance to the nation cannot be over-emphasised.
The sector accounts for more than RM100 billion in export value, behind only the Electrical & Electronics sector and Oil & Gas. We support approximately half a million smallholders, both independent and organised. There are millions more whose livelihoods depend on the industry,both directly and indirectly
All these people, depend on us to take the lead, to do what is right for them and for the industry.
Sure, Malaysia is only the world’s second largest producer of palm oil, but that does not mean we should accept second place for everything. We should instead, aim to be the best. The world still looks to us when it comes to statistics and data. And our capabilities in R&D remain unmatched
In Malaysia, our industry is tightly regulated and thus,we are already accustomed to being audited and assessed. We are accustomed to following stringent rules and regulations
Our Malaysian Sustainable Palm Oil standard is robust. Our national regulations adhere to international standards
What we need to do is to build on the rigour we have applied in these areas, to mechanisation, and quality.
Meanwhile, we must absolutely step up on our advocacy.
For decades, we were largely silent in the face of well-coordinated campaigns to rubbish the product we all produce. I am sure that the industry would not have survived if palm oil had not been the cheapest edible oil in the world
Today, because we comply with standards that few others have to, our advocacy can take a different approach
We can, and we should hold others to our standards. Because believe you me, most of them will fall far short of our expectations.
Ladies and Gentlemen, in closing, my sincere appreciation to Yang Berhormat Datuk Seri Dr. Noraini Ahmad, Minister of Plantation and Commodities, for graciously taking the time to be with us this morning.
I also extend my heartfelt thanks to all participants, session chairpersons, speakers, paper presenters and members of the organising committee for their dedication and efforts in making this two-day seminar possible.
I encourage all participants to engage actively in the discussions, share insights openly and explore opportunities for collaboration. Through knowledge, innovation and partnership, I am confident that we can collectively secure the future of palm oil in a changing global economy
With that, I wish all participants a productive and rewarding R&O 2026.
Thank you.