Malaysia leverages cutting-edge tech and certification standards to propel sustainability agenda

KUALA LUMPUR: Malaysia is leveraging cutting-edge technology and rigorous certification standards to position itself as a global leader in sustainability, particularly within the agricommodity sector, said Deputy Plantation and Commodities Minister Datuk Chan Foong Hin.

Speaking at the Sustainable Action Conference 2024 (SAC2024) today, he highlighted the country’s commitment to balancing economic growth with environmental stewardship.

“Our agricommodity sector, which has driven economic development for decades, must now embrace sustainability to remain globally competitive. This sector includes palm oil, rubber, timber, corn, and pepper, which collectively support millions of livelihoods, especially in rural areas,” Chan said.

He noted that a key milestone in Malaysia’s sustainability journey is the recent launch of an artificial intelligence-powered smart palm oil mill in Kuala Kangsar, Perak. “This facility, operational for 41 years, has transformed through a RM4–RM5 billion investment in artificial intelligence, showcasing the industry’s forward-thinking approach. The facility is designed to enhance efficiency and reduce reliance on foreign labour, a critical step toward self-sufficiency.”

Chan said the Malaysian Sustainable Palm Oil (MSPO) certification remains central to the nation’s sustainability efforts.

“This mandatory certification ensures compliance with global standards, including the European Union’s Deforestation-Free Regulation, while reinforcing the government’s commitment to preserving at least 50% of the nation’s forest cover. Our policies are guided by the National Agri-Commodity Policy 2021–2030, which integrates digital transformation, market-driven strategies and environmental, social and governance principles,” he added.

He noted that advanced technologies such as precision agriculture and Internet of Things-based soil sensors are being deployed to enhance productivity while maintaining environmental integrity.

Chan underscored the significance of diversifying palm oil applications beyond traditional uses. Initiatives such as the National Biomass Action Plan 2023–2030 aim to convert palm oil waste into biofuels and sustainable aviation fuel.

“By turning waste into wealth, we are strengthening our sustainability agenda while supporting Malaysia’s energy transition goals.”

Chan affirmed that smallholders are a crucial focus of Malaysia’s sustainability strategy. “Targeted programmes provide them with resources, training, and market access, ensuring inclusivity in sustainable practices. Empowering smallholders ensures the benefits of our initiatives that are far-reaching and equitable.”

As the country advances its sustainability agenda, Chan said, AI innovations and certification standards such as MSPO are proving to be pivotal in aligning economic growth with environmental and social responsibility.

Meanwhile, SAC2024, co-organised by Control Union Malaysia and the Malaysian Dutch Business Council, and supported by the Embassy of the Netherlands, served as a platform to showcase Malaysia’s leadership in sustainability. The programmes included forums, case studies and pitching sessions designed to equip participants with practical tools to enhance their initiatives.