Expo Dubai 2020 is a boon for Malaysia, as with global economy slowly inching towards to pre pandemic levels, the demand for commodity has been on the tear. Prices of raw materials have shot up to exponential levels as economies ramp up production to cater for the pent up demand. Malaysia with its Pavillion showcasing some of the best the country has to offer, is seeing big demands of its natural goods including our pride and joy, Palm Oil.
With a population base of over 330 million and consumption of 2.34 million tonnes last year, the Middle East has been a good customer to Malaysia, they increased purchase of the product by eight percent from 2020.
Malaysian Palm Oil Council, CEO Wan Aishah Wan Hamid who was elated on the figures said the region has shown consistent growth in consumption of specialty fats and palm oil would benefit from this trend due to its nutritional qualities and functional attributes. This region is also set to see a boost in demand due to global events like Expo 2020 Dubai, FIFA 2022 and religious tourism.
Last year, the export of Malaysian palm oil to the Middle East registered an increase of 8.2 percent. The leading importer from this region is Turkey with a volume of 703,588 tonnes followed by Iran with 404,319 tonnes. These two markets have recorded increases of 19 percent and 25 percent respectively. Other countries which recorded increases are United Arab Emirates (UAE), Yemen, Jordan, Syria, Qatar and Kuwait.
“The UAE palm oil market is expected to reach US$467.1 million by 2025, according to a report by Grand View Research Inc,” Wan Aishah said. Turkey has been a strong consumer of the golden goodness, stating the confectionery sector has increased approximately 50 percent for a period of ten years beginning in 2010 and the sector would continue its growth pattern and palm oil consumption. Followed by Egypt which is seeing an uptake in palm olein for the hospitality and f&b industry, as tourism recovers.
To boost recognition of Malaysian Palm Oil, MPOC will be embarking on promotional efforts for global recognition of Malaysian Sustainable Palm Oil (MSPO) as Malaysia’s sustainability standard. The Malaysian Palm Oil Full of Goodness campaign would be the main theme during the Sustainable Agri-Commodity Week from February 6 to February 12 to support Malaysian palm oil-based product manufacturers who would be marketing their products at LuLu Hypermarket in UAE.
Palm Oil is the fourth largest contributor to the Malaysian economy and by the looks of things would be able to maintain its 2021 performance in 2022 backed by various marketing and promotional efforts to be conducted by the Ministry of Plantation Industries and Commodities and its agencies.
In 2021, the total exports of Malaysian palm oil and its derivatives stood at 24.26 million tonnes and due to high palm oil prices, total revenue increased by 40 per cent to RM 102.34 billion as compared to 2020.
