InfoSAWIT, KUALA LUMPUR - In a significant move, Malaysia has reaffirmed the critical need for collaboration between industry players and research institutions to propel the national palm oil industry forward. This initiative is part of the Technology Transfer of Technology (TOT) 2025 program organized by the Malaysian Palm Oil Board (MPOB).
During the event, Minister of Plantation and Commodities, Datuk Seri Johari Abdul Ghani, urged industry stakeholders to actively engage in the development and commercialization of strategic research outcomes. Johari emphasized that a strong partnership with MPOB not only accelerates technology adoption but also creates substantial opportunities for commercializing innovations developed in laboratories.
"When industry players have confidence in the research conducted, approximately 70 percent of the results can be directly commercialized," he stated, as reported by InfoSAWIT from Business Times on Sunday, June 22, 2025. He added that this success would benefit both parties—industry players and MPOB, which stands to gain royalties from adopted innovations.
One of the initiatives currently being pursued by MPOB involves collaboration with KL-Kepong Industrial Holdings Sdn Bhd (a subsidiary of Kuala Lumpur Kepong Bhd), SALCRA in Sarawak, and the Johor State Agricultural Corporation. This partnership focuses on developing palm oil-based animal feed technology, which is expected to reduce dependence on imported feed and strengthen local supply chain resilience.
"This is not just about innovation; it is a national strategy to ensure the sustainability of the livestock and agriculture sectors as a whole," Johari explained.
Additionally, MPOB is exploring the development of environmentally friendly palm oil-based products as alternatives to conventional unsustainable products. One example is palm oil-based transformer oil, which is currently being considered by Tenaga Nasional Bhd (TNB) to replace petroleum-based oil in the national electricity grid.
"The market potential for palm oil-based transformer oil is estimated to reach a value of USD 287 million by 2030," Johari revealed.
To date, MPOB has reported that the commercialization of their research technologies has generated an economic value exceeding RM 5.9 billion. This achievement reflects improved operational efficiency and added value in the palm oil industry, which is increasingly transitioning from raw commodities to technology and innovation-driven industries.
The TOT program is also expected to serve as a vital platform for industry players to connect directly with technology inventors and researchers. Johari noted that these meetings not only strengthen networks but also align market needs with academic research directions.
"This forum serves as a strategic space to align research directions with real industry needs. Thus, research outcomes do not remain on laboratory shelves but are genuinely beneficial in the field," he stated.
The government's push to expand collaboration between the industrial and research sectors highlights a policy direction increasingly favoring the transformation of the palm oil industry towards high-tech and environmentally conscious practices. (T2)
