Kuala Lumpur, 30 August 2024 – Bursa Malaysia Derivatives Berhad (“Bursa Malaysia
Derivatives” or the “Exchange”) and the Malaysian Palm Oil Council (“MPOC”) recently co-
hosted the East Malaysia Palm Oil Forum (“EMPOF”) on 20 and 22 August 2024 in Kota
Kinabalu, Sabah and Kuching, Sarawak.The forum featured a series of educational
workshops and paper presentations by industry thought leaders and technical experts,
addressing the latest developments, challenges and opportunities surrounding the palm
oil sector in East Malaysia and globally.
Commenting on the significance of EMPOF, Datuk Muhamad Umar Swift, Chairman of
Bursa Malaysia Derivatives and Chief Executive Officer of Bursa Malaysia said, “Sabah and
Sarawak are important to Malaysia’s palm oil industry. Collectively, the two states in East
Malaysia dedicate 3 million hectares to oil palm cultivation and account for 56% of the
nation’s palm oil production in 20231
. As the global centre for palm oil price discovery, the
Exchange is pleased to collaborate with the Malaysian Palm Oil Council to drive impactful
dialogue and forge strategic partnerships aimed at enhancing the competitiveness of East
Malaysia’s palm oil sector. Insights from the forum will be instrumental in shaping
strategies, equipping participants with the knowledge needed to navigate the ever-
evolving market dynamics.”
Ms. Belvinder Sron, CEO of Malaysian Palm Oil Council added, ”The East Malaysia Palm Oil
Forum marks an important milestone in fostering collaboration across the region’s palm
oil industry. MPOC is pleased to collaborate with Bursa Malaysia Derivatives to bring
stakeholders together to address the critical challenges related to the EU Deforestation
Regulation (EUDR), and to discuss how the Malaysian Sustainable Palm Oil (MSPO)
certification scheme can help meet these regulatory requirements.”
EMPOF key highlights
The forum spotlighted East Malaysia’s strides in sustainability, particularly Sabah’s
increased adoption of MSPO certification and advancements in precision agriculture and
biomass utilisation. Sarawak’s commitment to sustainable practices and compliance with
international standards were also emphasised, addressing common issues such as labour
shortages and rising production costs. In addition, the forum covered analysts’ market
outlook for the palm oil market, indicating that prices are likely to remain under pressure
throughout the remainder of the year due to peak production cycles in mid-2024.
EMPOF brought to the fore Malaysia’s strategic efforts in meeting EUDR requirements,
with MSPO certification serving as a key differentiator for global market positioning. There
were also discussions on improving support for oil palm smallholders and fostering
greater international collaboration. Technological advancements such as digital
traceability infrastructure were also explored to improve supply chain transparency, with
EUDR compliance seen as an opportunity to enter high-value markets and reduce export
dependency.
To assist East Malaysian palm oil players in navigating hurdles and seizing market
opportunities, EMPOF held a practical workshop featuring simulation exercises on futures
trading. The workshop provided know-how on utilising the Bursa Malaysia Crude Palm Oil
Futures (FCPO) contract to manage price risk amid market volatility, to enhance business
performance.
The forum attracted over 200 delegates, comprising traders, finance and investment
professionals, risk managers, analysts and researchers. Bursa Malaysia and MPOC extend
their sincere appreciation to all delegates, speakers and sponsors for their contributions
and support. Other key partners for EMPOF include The East Malaysia Planters’
Association, Sarawak Oil Palm Plantation Owners Association, and Sarawak Dayak Oil Palm
Planters Association.
Bursa Malaysia and MPOC reaffirmed their commitment to advancing the crude palm oil
industry, following the forum’ success. Datuk Muhamad Umar Swift said, “Bursa Malaysia
Derivatives remains dedicated to strengthening Malaysia’s position as the global hub for
edible oil price discovery. To this end, the Exchange will intensify its efforts to develop
anattractive marketplace via an expanded range of product offerings, and continued
collaboration with key stakeholders.”
Belvinder Sron added, “MPOC remains committed to expanding Malaysian palm oil
exports worldwide, leveraging our network of offices across key regions promoting
sustainable palm oil on a global scale. Beyond the East Malaysia Palm Oil Forum, we strive
to drive more dialogue sessions that reinforce Malaysia’s leadership in sustainable palm
oil production.”
About Bursa Malaysia
Bursa Malaysia is an Exchange holding company incorporated in 1976 and listed in 2005.
It has grown to be one of the largest bourses in ASEAN. Today, Bursa Malaysia operates
and regulates a multi-asset exchange, offering a comprehensive range of investment,
capital raising, and exchange-related facilities. Bursa Malaysia is committed to its mission
of Creating Opportunities, Growing Value for the Malaysian capital market, economy, and
society.
Learn more at bursamalaysia.com.
About Malaysian Palm Oil Council
The Malaysian Palm Oil Council (MPOC) is dedicated to promoting Malaysia as a global
leader in certified sustainable palm oil. MPOC focuses on positioning Malaysian palm oil
as a healthy, sustainable, and ethical choice for consumers worldwide by engaging with
stakeholders, improving market access, and promoting the MSPO certification. MPOC has
a network of regional offices in various international locations and plays a crucial role in
expanding Malaysia’s palm oil industry by identifying and capitalising on market trends.
For more information on MPOC and Malaysian palm oil, visit www.mpoc.org.my
