KUALA LUMPUR: Malaysia has urged investors, particularly from China, to explore the vast opportunities in the country's agri-commodities sector, with crude palm oil identified as a key area for growth.
In a speech at the Malaysia-China Summit 2024 Leadership Conference, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani highlighted the many potential collaborations between the two nations.
He said that successful partnerships in the palm oil sector would be most effective when founded in Malaysia, where feedstock is plentiful, paired with China's extensive market network.
Johari outlined three key areas for investment: biomass and biogas energy, sustainable aviation fuel (SAF), and oleochemical plants in Sabah and Sarawak.
The government is keen to leverage the circular economy concept within the palm oil industry, converting waste into green energy via biomass and biogas.
He noted that mills with a capacity of 60 tonnes per hour could generate between five and seven megawatts (MW) of energy. If all mills in the country adopted biomass and biogas facilities, they could potentially generate around 2,200 MW of energy across over 440 locations.
On SAF, Johari announced plans to make sustainable jet fuel mandatory for all flights to Malaysia by 2027, emphasising the country's potential as a major player in SAF production due to its abundant feedstock resources, strong biofield industry, and close cooperation with the oil and gas sector.
Additionally, 55 per cent of Malaysia's palm oil planted area is in Sabah (1.5 million hectares) and Sarawak (1.6 million hectares).
However, there are no oleochemical plants in either state, and Johari welcomed investors to establish such facilities in both locations.
He also encouraged investment in upgrading existing palm oil mills, many of which are outdated.
With around 448 mills in operation as of June 2024, Johari noted that mill owners could collaborate with investors to modernise operations, incorporating technologies like AI to improve efficiency, reduce oil losses, and lessen reliance on labour.
The minister emphasised that Malaysia's palm oil industry benefits from a well-established ecosystem, including a thriving research and development environment, a robust network of mills and refineries, and a trusted sustainability certification scheme.
By investing close to the source, he assured potential investors of secure feedstock supply.
Looking ahead, Johari stressed the continued potential for collaboration between Malaysia and China in the palm oil sector, particularly in light of global economic uncertainties and rising geopolitical risks.
He highlighted Malaysia's well-regulated and stable palm oil industry, which offers excellent infrastructure and sustainability guarantees through the Malaysian Sustainable Palm Oil certification scheme.