FACT 2025: Malaysia Drives Trade Growth With Harmonised Commodity Standards

PUTRAJAYA, April 14 (Bernama) -- As the powerhouse in the global commodities market, with palm oil, rubber, timber, cocoa and pepper driving its economy, Malaysia is focused on streamlining trade to foster trust between trading partners to strengthen trade and market development.

This includes efforts to harmonise national certification standards and align them with international requirements.

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said nationally developed standards such as the Malaysian Sustainable Palm Oil (MSPO), Malaysian Sustainable Natural Rubber (MSNR), and Malaysian Timber Certification Scheme (MTCS) will act as the primary compliance tools for their respective industries to ensure responsible production.

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“These standards were developed through a spirit of collaboration, in close partnership with industry players, civil society organisations, as well as international bodies like the International Labour Organisation (ILO),” he said at the launch of the Forest, Agriculture and Commodity Trade (FACT) Forum 2025 here today.

Malaysia, which officially took over as co-chair of the FACT Dialogue for 2025–2026 from Indonesia, pledged to build upon its predecessor’s legacy and continue working with the United Kingdom to advance progress across four key thematic areas—Trade and Market Development, Smallholder Support, Traceability and Transparency, as well as Research, Development and Innovation.

“Our approach is built on the principle of ‘Shared Responsibility, Shared Prosperity, Towards Sustainability’,” Johari said.

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Underscoring the vital role of smallholders, Johari said Malaysia will continue to support approximately 800,000 smallholders nationwide through every step of the sustainability journey. He stressed that excluding them from global supply chains would be both unjust and counterproductive.

“With the right support, smallholders can adopt better agricultural practices, obtain certification and ultimately achieve higher yields and incomes,” he said, adding that government assistance includes financial aid, capacity-building programmes, digital tools and direct market linkages.

Johari also highlighted that producing nations like Malaysia have taken bold steps to balance economic development with environmental stewardship. The country has maintained over 50 per cent forest cover and introduced sustainability certification schemes to minimise deforestation.

“As we advance the sustainability agenda, it is crucial to acknowledge the different contexts and contributions of producing and consuming nations. Open dialogue and mutual understanding are key to achieving our shared goals of sustainability and prosperity,” he said.

Malaysia is also strongly committed to the global sustainability agenda, Johari said, citing ambitious targets such as achieving net-zero greenhouse gas emissions by 2050, reducing carbon intensity by 45 per cent by 2030, cutting methane emissions by 30 per cent, and retaining at least 50 per cent of its forest cover.

In a joint statement, United Kingdom Minister of State for Climate Change Kerry McCarthy said this year’s FACT Forum will put smallholders at the heart of the conversation.

“Developing sustainable trade should mean growth and opportunity for all those along the supply chain, especially smallholder farmers who are key drivers of change in the transition to a sustainable food system,” she said.

Meanwhile, Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, reaffirmed the commitment of producing and consuming countries to promote sustainable trade and preserve ecosystems.

“By integrating smallholders into sustainable supply chains, we are not only securing their livelihoods but also strengthening the foundation of global agriculture,” he said, while announcing Indonesia’s transition out of the co-chair role and welcoming Malaysia’s leadership.

The ministry is hosting the FACT Forum 2025 beginning April 14 to 17, under the theme “Enhancing Support for Smallholder Farmers”.

Among the key highlights of the event are a bilateral meeting between the Malaysian and UK governments, an official opening ceremony, and a field trip to Pulau Carey to engage with MSPO-certified smallholders, including the Orang Asli Mah Meri community.

The forum will also feature ongoing discussions and knowledge exchange sessions throughout the event.

-- BERNAMA