Malaysia eyes stronger palm oil exports as Indonesia boosts domestic use

Malaysia expects to increase palm oil exports to global markets as rising use of the commodity for biodiesel production in Indonesia could reduce the latter’s export availability. Malaysian palm oil exports have increased by 8% year on year over the past eight months.

Additional opportunities for Malaysia are emerging from Indonesia’s B50 biodiesel mandate. The policy is expected to raise domestic palm oil consumption to 16.3–17 mln tons, reducing the volumes available for overseas shipments.

The Philippines remains one of Malaysia’s priority markets, importing nearly 90% of its palm oil requirements. Malaysia has already shipped more than 700 thsd tons to the country, including 421.9 thsd tons in the first seven months of 2026.

Malaysian exporters also plan to expand sales of higher-value palm oil products in the Philippines, including oleochemicals, shortening and palm tocotrienols. At the same time, the Philippines is seeking to reduce its import dependence by expanding oil palm area to 100 thsd hectares by 2028 and eventually to 300 thsd hectares.

Malaysia expects its palm oil exports to exceed 16 mln tons this year, up from 15.2 mln tons last year. The Malaysian Palm Oil Council believes lower export availability from Indonesia could help Malaysia strengthen its position in key import markets and sustain shipments even if global prices soften.

Tags: export, Indonesia, Malaysia, palm oil