Malaysia optimistic about palm oil growth prospects in 2026

In 2025, Malaysia’s total export value of palm oil and palm oil products rose to 112.51 billion MYR (28.68 billion USD), up from 109.39 billion MYR in 2024, reflecting stable global demand as well as Malaysia’s focus on improving reliability and quality and investing in value-added products.

Malaysia remains confident that 2026 will bring more growth opportunities for the global palm oil industry, driven by stronger international cooperation, improved trade conditions and joint efforts to enhance sustainability and resilience.

Despite ongoing global uncertainties, the palm oil industry has maintained its growth momentum, reflecting strong confidence in Malaysia as a stable and responsible supplier, Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said in her keynote address at the 37th Palm and Lauric Oils Price Outlook Conference and Exhibition (POC) 2026 on February 10.

In 2025, the total export value of palm oil and palm oil products rose to 112.51 billion MYR (28.68 billion USD), up from 109.39 billion MYR in 2024, reflecting stable global demand as well as Malaysia’s focus on improving reliability and quality and investing in value-added products.

For vegetable oils, these pressures were further compounded by climate change commitments, stringent environmental regulations and shifts in demand patterns. Meanwhile, weather-related disruptions and biofuel policies affected the supply-demand balance and increased price sensitivity for palm oil, soybeans and sunflower oil.

Despite these challenges, domestic crude palm oil production reached an all-time high of 20.28 million tonnes in 2025, surpassing 20 million tonnes for the first time. Minister Noraini added that throughout the year, the domestic palm oil industry intensified efforts to strengthen certification and traceability, thereby enhancing the confidence of global buyers and consumers.

Looking ahead to 2026, collaboration across the entire value chain will be crucial for the palm oil industry, she said, stressing that producers, traders, policymakers and consumers must work closely together to manage market volatility, regulatory changes and shifting demand.