Image Source : Food Navigator Asia
Malaysia’s palm oil industry saw contrasting trends in 2025. According to the Malaysian Palm Oil Board (MPOB), output surged to a record 20.28 million tonnes, up from 19.34 million tonnes in 2024. However, exports fell to 15.28 million tonnes, down from 16.9 million tonnes, reflecting shifting global demand patterns.
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Malaysia, the world’s second-largest palm oil producer, reported a record-breaking production year in 2025 even as exports declined. The Malaysian Palm Oil Board (MPOB) highlighted that while domestic output surged, international shipments faced headwinds due to softer demand and competitive supply from other producing nations.
Key Highlights:
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Record Output: Palm oil production rose to 20.28 million tonnes in 2025, compared to 19.34 million tonnes in 2024.
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Export Decline: Exports fell to 15.28 million tonnes, down from 16.9 million tonnes a year earlier.
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Global Context: Lower exports reflect challenges in international markets, including price volatility and rising competition from Indonesia.
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Domestic Impact: Higher output strengthens Malaysia’s supply base, supporting local industries and potential stockpiling.
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Strategic Outlook: Industry players may focus on diversifying markets, enhancing sustainability credentials, and boosting downstream processing to offset export declines.
This dual trend underscores the resilience of Malaysia’s palm oil sector while highlighting the need for adaptive strategies in a changing global commodities landscape.
Sources: Malaysian Palm Oil Board (MPOB), Reuters, Business Standard
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