Malaysia to reduce palm oil exports by 2025

According to Oil World (Germany), Malaysian palm oil exports in December 2025 are estimated at 1.32 million tonnes (1.34 million tonnes in the same month a year earlier), of which 251,000 (152,000) tonnes were shipped to India, 95,000 (115,000) tonnes to China, 88,000 (112,000) tonnes to the EU, and 80,000 (73,000) tonnes to Turkey.

Total palm oil shipments from Malaysia reached 15.26 million tonnes in 2025, compared to 16.9 million tonnes in 2024. Specifically, India imported 2.66 million tonnes (3.03 million tonnes), the EU imported 1.03 million tonnes (1.29 million tonnes), China imported 0.89 million tonnes (1.39 million tonnes), Turkey imported 746,000 tonnes (905,000 tonnes), and the Philippines imported 723,000 tonnes (687,000 tonnes).

Malaysia’s refined and crude palm oil exports decreased last year, primarily to Asian and European countries, while increasing to certain African countries. As a result, the share of Asian countries in Malaysian palm oil exports decreased from 63% to 60% over the year.

It is also noted that between January 1 and 15, Malaysian palm oil exports increased by 18-19% compared to the same period the previous month, driven by significant product inventories accumulated in previous months and increased price competitiveness for Malaysian palm oil on the global market.

Palm oil inventories in Malaysia increased by 7.56% compared to the previous month to 3.05 million tonnes, indicating a significant increase in supply pressure and indicative of insufficient market demand or excess production. This negative news could lead to lower spot prices, as inventory buildup typically indicates a supply-demand imbalance and suppresses buyer appetite. A rating of -1.5 indicates a significant negative impact, but the inventory build has not yet reached extreme levels and should be assessed in conjunction with subsequent demand data.

Tags: export, Malaysia, palm oil