Opening Address by YBhg. Datuk Dr. Ahmad Parveez Ghulam Kadir, Director General, Malaysian Palm Oil Board (MPOB), at the Programme Advisory Committee (PAC) Meeting

1. Alhamdulillah, praise be to the Almighty for bringing us together this morning for the MPOB’s Programme Advisory Committee (PAC) 2026 Meeting. It is my great pleasure to welcome all of you. We are honoured to be joined by an eminent group of scientists, researchers and industry experts from diverse disciplines and from across the globe. Your presence reflects the importance of this platform, and I would like to extend my sincere appreciation for your continued commitment in supporting MPOB’s scientific and strategic endeavours.
   
   
2. The PAC has long served as an important platform for structured, forward-looking and strategic discourse. It enables MPOB to align its research and development agenda with both industry priorities and global expectations. MPOB’s R&D framework is currently organised around six key Focus Areas, encompassing the entire value chain from upstream and midstream to downstream, while integrating techno-economic and socio-economic dimensions. This holistic approach ensures that scientific progress is not pursued in isolation, but is firmly anchored to real-world applications, market demands, and societal needs. The insights and recommendations provided by PAC members have consistently strengthened MPOB’s research direction, enhancing the competitiveness, resilience and sustainability of Malaysia’s oil palm industry.

Ladies and gentlemen,

3. The year 2025 marked a strong performance for the Malaysian oil palm industry, with crude palm oil (CPO) production reaching a historic high of 20.28 million tonnes, the highest level recorded in the past decade. This achievement was supported by improvements in fresh fruit bunch (FFB) yields, and improved labour situations in the oil palm plantation sector. Nevertheless, the industry continues to face underlying structural challenges, particularly the issue of aging oil palm trees, as well as persistent threats from pests and diseases such as Ganoderma basal stem rot and bagworm infestation, which may affect long-term productivity if not effectively addressed.
   
   
4. In 2025, we have witnessed the average CPO price rose by 2.7% to RM4,292.50 per tonne compared to RM4,179.50 per tonne in 2024. The firmer CPO price had resulted with increase in total export earnings by 2.8% to RM112.43 billion as compared with RM109.39 billion attained in 2024.
   
   
5. As we leap into the second quarter of 2026, the global economic landscape remains uncertain, influenced in part by geopolitical instability, particularly in the Middle East. The resulting volatility in crude brent oil prices has had spillover effects across multiple sectors, including the global oils and fats market.
   
   
6. In this context, the role of palm-based biodiesel as alternative fuel has become increasingly strategic. Biodiesel blending delivers direct economic benefits, with every 10% substitution potentially reducing diesel costs by approximately RM0.10 to RM0.20 per litre, depending on location and logistics.
   
   
7. Beyond cost savings, biodiesel contributes to enhancing national energy security and reducing reliance on fossil fuels. Moving forward, the Government will continue to explore the feasibility of increasing biodiesel blending ratios, particularly where implementation can be accelerated without major disruption, thereby optimising subsidy expenditure and supporting a more sustainable energy transition.
   
   
8. At the same time, palm oil remains one of the most efficient oil crops globally, producing significantly higher yields per hectare compared to other vegetable oils. This efficiency positions palm oil as a critical component in addressing global food security while minimising land expansion.

Ladies and gentlemen,

12. The Government’s efforts and initiatives have further strengthened the industry’s competitiveness. These initiatives include the mandatory MSPO 2.0 certification, smallholder replanting support worth RM 100 million, increasing the windfall levy threshold for plantations, advancements in sustainable aviation fuel and acceleration of automation through Artificial Intelligence (AI) and drones technologies.
    
    
13. The Malaysian Government, through MPOB under the Ministry of Plantation and Commodities with unyielding support from industry players, diligently ensure the oil palm industry continues to be a powerhouse in the oils and fats market. In this regard, we must generate fresh ideas to move the industry toward a sustainable and prosperous future. This PAC meeting is a vital platform where such ideas, innovations and solutions can be nurtured to enhance MPOB’s R&D endeavours and effectively serve the needs of our oil palm industry to fulfil its role in the global fats and oils market.
14. One of the critical areas that we must focus on during the deliberations is addressing the industry’s concerns regarding yield improvement. MPOB’s steadfast commitment through a comprehensive and integrated approach, encompassing advancements in planting materials, agronomic practices, and pest and disease management. Among these efforts, high-yielding dwarf planting materials such as PS1.1 have been progressively introduced to selected plantations and smallholders as part of ongoing field evaluations.
15. Alongside these efforts, MPOB continues to strengthen its breeding programme to further improve planting materials. Advanced genomic tools such as the MPOB-EG50 which is an optimised single-nucleotide polymorphism (SNP) panel plays pivotal role in enhancing development efficiency of new and improved planting materials, while supporting oil palm breeders and tissue culturists.
16. Sustainability remains a central pillar of our agenda. We are mindful of evolving global regulatory landscapes, including the European Union Deforestation Regulation (EUDR), which introduces new requirements on traceability and deforestation-free supply chains.
17. While these measures aim to strengthen sustainability, it is essential that they are implemented in a fair, science-based, and non-discriminatory manner, taking into account the realities faced by producing countries and smallholders.
18. Climate change further adds urgency to this agenda. Oil palm has the potential to contribute positively through carbon sequestration, biomass utilisation and circular economy approaches. Strengthening scientific evidence on carbon footprint and lifecycle analysis will be key in repositioning palm oil within the global sustainability discourse.
19. Smallholders remain a critical pillar of the industry. Ensuring their inclusion in sustainability frameworks, while enhancing productivity and income resilience, must remain a key priority.
20. In this context, science diplomacy is increasingly important. We must continue to strengthen international collaboration and ensure that global narratives on palm oil are grounded in facts and robust scientific evidence.

Ladies and gentlemen,

18. Encouragingly, as of 31 December 2025, 83% of Malaysia’s planted area has been certified under MSPO 2.0, reflecting strong national progress towards sustainability.
19. With regard to food safety and nutrition, emerging challenges require proactive engagement. These include process contaminants such as 3-MCPDE and glycidyl esters, as well as newer concerns involving MOSH, MOAH and 8-hydroxyquinoline. With anticipated regulatory developments, particularly in the European Union,           early preparedness and strong scientific capabilities will be essential to safeguard market access.
20. Value addition remains a key priority. MPOB has made encouraging progress in translating research into commercial applications, including palm-based polyols, bio-lubricants, and methyl ester sulphonates (MES), and palm-based transformer oil to name a few. Moving forward, MPOB must further strengthen its innovation ecosystem by bridging the gap between research, industry adoption, and market access through stronger partnerships.

Ladies and gentlemen,

21. Speaking of the key to unlocking the true value of this golden oil, the Milling, Processing and Automation Focus Area strives for the adoption of mechanisation and advanced technologies in the sector despite its applications remain relatively low, highlighting the need to accelerate innovation and deployment. There is an urgent need to develop scalable, cost-effective solutions, particularly for harvesting and field operations.

    While MPOB has developed numerous mechanisation tools, a fully integrated solution for harvesting, evacuation, and loose fruit
    collection remains a key gap. I would like to invite PAC members to focus your deliberations on three key questions:

• How can we significantly improve yield and productivity in a sustainable manner?
• How can we strengthen global acceptance through science and evidence?
• How can we accelerate the translation of research into scalable, real-world solutions?

Ladies and Gentlemen,

22. Before I conclude, I would like to once again thank all PAC Members for your participation in this year’s PAC Meeting. It is my sincere hope that this gathering of innovative minds will enhance MPOB’s R&D efforts and propel the oil palm industry to greater heights. With that, ladies and gentlemen, it is my pleasure to declare open the 2026 PAC Meeting. Thank you.