InfoSAWIT, KUALA LUMPUR – The Malaysian government is continuing to strengthen the palm oil sector and other plantation commodities through strategic steps based on research and innovation. In his presentation of the 2026 National Budget in Parliament, Prime Minister Datuk Seri Anwar Ibrahim asserted that science and scientific evidence are Malaysia's primary weapons in fighting negative campaigns against palm oil in the West.
“Thanks to scientific findings, Malaysia has successfully reversed the criticism of Western countries against palm oil. Our exports are now actually increasing, especially to China and India,” said Anwar, who also serves as the Finance Minister, as reported by InfoSAWIT from Bernama on Sunday (12/10/2025).
To reinforce this, the government allocated RM63 million to expand the campaign against anti-palm oil issues and accelerate the implementation of sustainable certification, including for independent smallholders.
Another crucial step is the push for local innovation and mechanization in the palm oil sector. The government set aside RM20 million to support start-up companies collaborating with the Malaysian Palm Oil Board (MPOB) and large palm oil companies in developing automation and mechanization products that can reduce reliance on foreign labor.
Anwar also affirmed the government's commitment to protecting the welfare of smallholders, whom he called the "backbone of Malaysia's agricultural sector." RM120 million was allocated to support the rejuvenation of old palm oil trees, encourage rubber farmers to increase production, and reactivate abandoned rubber plantations.
Beyond palm oil and rubber, the cocoa, pepper, and kenaf sectors also received attention. The government will distribute 1.1 million superior cocoa seedlings and provide training to farmers. Separately, subsidies for fertilizers and pesticides will be provided to ease the burden on pepper farmers, while the development of kenaf is being promoted as a new source of growth for Malaysia's agricultural commodities.
Furthermore, the Malaysian Rubber Board (MRB) will develop a research center of excellence with a budget of RM600 million to ensure the sustainability of the national rubber industry.
These measures, according to Anwar, underscore Malaysia's determination to make the agricultural commodities sector more modern, self-reliant, and globally competitive. "We do not just want to survive, but to lead with innovation and sustainability," he concluded. (T2)
