Mah: Malaysia's palm oil a ‘victim of its own success’

KUALA LUMPUR, March 7 — The European Union’s (EU) planned restrictions on palm oil was in response to the industry’s success rather than any genuine environmental concerns, Datuk Seri Mah Siew Keong told Parliament today.

The plantation industries and commodities minister further asserted that the EU move was to prevent palm oil and its derivatives from conquering the olein market completely.

Earlier this year, the European Parliament voted in favour of a draft law on renewable energy that calls for the use of palm oil in biofuels to be banned from 2021, citing environmental impact from palm production.

“The attacks against palm oil is not because we have failed, but we are actually the victim of our own success.

“They (the EU) are scared that if they do not limit the use of palm oil, in 10 years time, palm oil will dominate 80 per cent of the global vegetable oil market,” he said.

The Teluk Intan MP said in the 1960s and 1970s, palm oil only made up about 10 per cent of the global vegetable oil market, but this was now 60 per cent of all olein products.

Malaysia and Indonesia are among the two largest palm oil producers in the world.

Mah said the rise of palm oil was testament of Malaysia’s own success, and accused the EU of “protectionism” in its planned restrictions.

He added that palm oil and its derivatives have consistently been attacked to restrict its rise.

Previous justifications for reducing palm oil usage was due to purported health concerns, which Mah said has since been debunked.

“Now the attack has shifted towards a sustainability and environmental point, which to me is all protectionist,” he said.

Mah said Malaysia will continue efforts to counter the proposed EU ban while exploring other avenues to market its palm products, such as Saudi Arabia and Iran, which have increased its palm oil imports by 80 per cent.

Mah also reiterated that Malaysia would retaliate if the EU pushes ahead with the proposed trade restrictions.

“But I would like to stress that at the time being, there is no proposal to cut any diplomatic ties,” he added.

Mah was responding to Ipoh Barat MP M. Kulasegaran, who asked during Question Time whether the EU offensive against palm oil was due to a failure by the Malaysian government.