Malaysia will start offering free orangutans to China, the European Union (EU) and India as an environmental gesture for importing its palm oil. Analysts are already comparing this “orangutan diplomacy” to China’s “panda diplomacy.”

Palm oil production takes place in Borneo island and Sumatra, whose palm forests also double as orangutan habitat. Plantation owners also clear forests to cultivate the lucrative palm trees at the expense of the primates.

Since the palm industry has endangered the species, the authorities are offering away the apes as a sign of preservation commitment. 

According to conservation body WWF, the orangutan population in Borneo is down to 105,000. WWF is against Malaysia’s offer to key palm oil buyers and instead calls for importers to help conserve the apes. 

On the other hand, Johari Abdul Ghani, the Commodities Minister, says the gifting gesture will underline that Malaysia supports biodiversity preservation.

Palm Oil Stats in Malaysia

The heart of the matter is palm oil, of which Malaysia is the biggest producer in the world. 

Palm oil exports from Malaysia were highest in 2019 at 17.43 million tonnes while in 2023 they were 14.79 million tonnes. 

The oil finds its way in many edible products including margarine and candy as well as in beauty products.

Prices Down May 8

Despite a monthly decline of 7.79% in April’s export volumes to 1.22 million tonnes, Malaysia’s palm oil prices finally fell after a month-long strong show.

The main July palm oil delivery contract shrunk to 3,869 ringgit ($816.24) a tonne on May 8 at Bursa Malaysia Derivatives Exchange. The drop was rather surprising given that on May 6 and 7, the Malaysian price had rallied impressively.

The availability of affordable oils such as soy oil due to strong supplies by Brazil are to blame for the drop.

Analysts also attribute the erratic performance to the uncertainty linking palm oil to wildlife losses. In recent years, wildlife groups have been urging for the conservation of palm forests across Malaysia to preserve apes. 

Hence, Malaysia’s current focus is to appease the world through “orangutan diplomacy” to keep its palm oil moving.