Malaysia To Position Pakistan As Palm Oil Hub For Central Asia – MPOB

By Nurul Hanis Izmir

PUTRAJAYA, Jan 13 (Bernama) -- Malaysia is keen to position Pakistan as a strategic distribution hub for palm oil exports to Central Asia, capitalising on the country's strategic location and its proximity to emerging high-growth markets, the Malaysian Palm Oil Board (MPOB) said.

Its director-general Datuk Ahmad Parveez Ghulam Kadir said this vision is in line with the increasing demand in Pakistan’s US$115 billion (RM517.5 billion) food sector, presenting significant opportunities for Malaysian palm oil products.

“We aim to reinforce Malaysia’s position in Pakistan's edible oil industry while focusing on strengthening joint ventures, exploring value-added products, and promoting sustainable practices,” he told Bernama following his recent trip to Pakistan as part of the Plantation and Commodities Ministry’s visit.

Minister Datuk Seri Johari Abdul Ghani, who led the delegation had officiated at the 7th Pakistan Edible Oil Conference (PEOC) in Karachi on Jan 11.

Elaborating further, Ahmad Parveez said the board sees significant potential in enhancing collaboration with leading Pakistani companies such as the Westbury Group, which operates Mapak Qasim Bulkers, Mapak Edible Oils and FWQ Enterprises at Port Qasim. 

Mapak Qasim Bulkers controls about 50 per cent of palm oil imports into Pakistan, making it an essential partner for Malaysia in the region.

Ahmad Parveez said the visit aims to explore new collaboration avenues, focusing on leveraging Pakistan’s advanced infrastructure at Port Qasim, which handles over 90 per cent of the country’s palm oil imports. 

By modernising the oils and fats industry and streamlining logistics, both countries aim to reduce trade costs and increase efficiency, he said.

Meanwhile, he shared that the key discussions during his recent trip also revolved around upgrading infrastructure and promoting the import of palm-based specialty fats and oleochemicals, which could further boost Malaysia’s exports to Pakistan. 

Additionally, both nations are keen to explore research and development (R&D) opportunities to meet the growing demands of Pakistan’s food sector and diversify the application of palm-based products, particularly in personal care and household industries.

Sustainability is also a focal point of the discussions, with Malaysia emphasising the importance of the Malaysian Sustainable Palm Oil (MSPO) certification. 

“Malaysia aims to regain its market share in Pakistan, where it had seen a decline in recent years, with Indonesia now supplying 90 per cent of Pakistan’s palm oil imports.

By promoting sustainable practices and introducing innovative, value-added products tailored to the local market, Malaysia aims to enhance its competitiveness in Pakistan,” he said.

In 2024, Malaysia exported 860,260 tonnes of palm oil to Pakistan, a 14.2 per cent increase from 2023. With Pakistan's food sector projected to grow at 7.5 per cent annually, there is considerable room to expand exports, particularly in refined oils, specialty fats and oleochemicals.

On the MPOB Palm Oil Economic Review and Outlook Seminar (R&O) 2025 that is happening on Jan 14, Ahmad Parveez said it will be focusing on enhancing the competitiveness of Malaysia's palm oil industry through green economic initiatives.

The seminar, themed “Enhancing Palm Oil Competitiveness through Green Economic Initiatives”, will explore the role of sustainability and innovation in strengthening Malaysia's position in the global palm oil market.

— BERNAMA=