Malaysia boosts palm oil exports amid tariff cuts and increased cooperation with China

Malaysia is showing a rise in palm oil exports in May 2025, supported by rising futures and a favorable pricing position compared to competitors. According to Oleksiy Udovenko, regional director of the Malaysian Palm Oil Council, exports increased by 6.6-14.2% in the first 15 days of May, and futures on the Bursa exchange exceeded 3,850 MYR/t, adding more than 1%. A reduction in export duty from 10% to 9.5% in June and a spread with soybean oil are increasing the competitiveness of Malaysian products in the global market.

China is strengthening trade ties with Malaysia, deepening cooperation in the palm oil sector. The partnership involves not only increasing supplies, but also expanding the use of the oil in the food, cosmetics and industrial sectors, including for biofuel production. Meanwhile, India, one of the largest importers, cut palm oil imports by 53% in April due to high prices and increased domestic production, which is holding back demand in the region.

In contrast, Malaysia, Indonesia, has increased its export duty to 10% from May 17, which could reduce its competitiveness. Analysts predict that palm oil prices could fall to 3,733.09 MYR/t by the end of the second quarter due to competitive pressure and macroeconomic factors. However, Malaysia remains cautiously optimistic, relying on growing exports and strategic partnerships, including with China.

Tags: palm oil, export, prices