P A L M DOW NSTR EA M TRI BU N E
Market Highlight
Pakistan as a Key Growth for Malaysian Palm Oil Industry
Knowledge Nugget
Decoding Palm Oil: Essential Insights for Balanced and Informed Sustainability Conversations Part III
Next Chapter Media
DISCLAIMER:
Next Chapter Media's editorial team strives to provide accurate and reliable information. However, we recommend that readers independently verify the claims and information presented in our publications. Next Chapter Media is not responsible for the accuracy of the content and encourages readers to use their own judgment when evaluating the information.
Zahidah Zahidi zahidah@maps-globe.com
CREATIVE
Muhammad Faireez artwork@mapsglobe.com
Azriq Suhairi mapsglobe.azriq@gmail.com
MARKETING
Kelly Yew kelly@maps-globe.com
DIRECTOR
Emily Yu
Maps & Globe Specialist Distributor Sdn. Bhd (625396-A) No 3-1 Jalan Perdana 10/6, Pandan Perdana, 55300 Kuala Lumpur, Malaysia.
PRINTING
Fong Wah Printing Sdn. Bhd. (1406717K) No. 17, JaIan Tembaga SD 5/2G Perindustrian Bandar Sri Damansara, Pekan Kepong, 52200 Kuala Lumpur
the latest
Decoding Palm Oil: Essential Insights for Balanced and Informed Sustainability Conversation Part III
Malaysia exported 54,665 tonnes of palm oil and palm-based products worth RM288.23 million to Central Asia in 2024, said Plantation and Commodities Deputy Minister Datuk Chan Foong Hin. e government, through the Malaysian Palm Oil Council (MPOC), aims to strengthen Malaysia’s position in the region while enhancing market dominance in Pakistan. "Central Asia is an important export destination for Malaysian palm oil," Chan said in the Dewan Rakyat, highlighting MPOC’s initiatives to boost trade. Pakistan, a key market, imported 860,260 tonnes of Malaysian palm oil in 2024. With its strategic location, Pakistan serves as a gateway for palm oil distribution to Central Asia.
Malaysia Strengthens Palm Oil Trade in Central Asia
and Pakistan
During a Jan 9-11 visit to Karachi, Minister Datuk Seri Johari Abdul Ghani discussed leveraging Pakistan's Port Qasim for e cient palm oil distribution. Malaysia’s exports are expected to maintain an 18-25% share of Pakistan’s total palm oil imports, subject to market conditions. On industry innovation, Chan noted Malaysia’s participation in a global expo in Osaka, Japan, to explore palm biomass waste for electricity generation. He emphasized adding value to biomass before export, advocating for pelletising rather than raw material exports.
Indonesia Emphasises Sustainable
Palm Oil for Food and Energy Security
Indonesia’s Deputy Minister of Agriculture, Sudaryono, has stressed the need to boost sustainable palm oil productivity to support food security, energy self-su ciency, and resource downstreaming.
“ e government wants our palm oil to be sustainable,” he said at the International Conference on Palm Oil and the Environment (ICOPE) 2025 in Bali. Productivity improvements, he noted, can be achieved through land intensi cation, superior seeds, and replanting with intercropping methods such as upland rice or corn. Expansion, if necessary, will avoid deforestation through careful planning and sustainable practices.
With Indonesia supplying 58% of the world’s palm oil, he highlighted its role in food security programs, including free nutritious meals for students and pregnant women, and energy self-su ciency through the B40 biodiesel mandate.
WWF Indonesia’s Director of Conservation, Dewi Lestari Yani Rizki, urged the industry to adopt sustainability practices to meet global market demands and support carbon reduction and biodiversity conservation. Sinar Mas Agribusiness & Food CEO, Franky Oesman Widjaja, emphasized government-business collaboration to ensure sustainability and innovation in the sector. He called for concrete actions from the conference to position palm oil as a solution to climate and environmental challenges. “We are committed to best practices in sustainable agriculture and ecosystem protection,” he said.
In his weekly column in the Borneo Post, columnist Joseph Tek, suggests that palm oil could undergo a transformation similar to that of lobsters, oysters, and olive oil. Once considered lowly, lobsters were once prison food in colonial America, while oysters were once cheap street food in 19th-century New York. Both foods eventually became symbols of luxury, rising from humble beginnings through clever rebranding and storytelling. Similarly, palm oil, o en perceived as a commodity oil, has untapped potential to be reimagined as a premium product, akin to extra-virgin olive oil.
(29 December 2024)
Rebranding palm oil, learning from oysters
Palm oil, when re ned, loses much of its natural richness, including its vibrant color and health bene ts. However, it remains a nutrient-dense powerhouse, rich in antioxidants, Vitamin E, and other bene cial compounds. Its potential lies in showcasing it as a natural, unre ned product - Red Virgin Palm Oil (RVPO). is rebranding could position palm oil as a gourmet ingredient, emphasizing its heritage, health bene ts, and versatility. Just as olive oil underwent a transformation into a luxurious product through its "virgin" label, RVPO could capitalise on similar branding, signaling purity, quality, and artisanal care.
e challenge is shi ing palm oil from a mass-market commodity to a specialised o ering. To succeed, the industry must focus on educating consumers about its nutritional bene ts, sustainability, and cultural signi cance. RVPO could be marketed initially to health-conscious and gourmet food communities, slowly building a reputation as a premium, nutrient-packed oil. With the right strategy and a compelling narrative, palm oil has the potential to become a global culinary iconrevered not only for its taste but also its healthful properties.
Indonesia Delays B40 as GAPKI Warns of Export Tax Impact
(15 January 2025)
Indonesia has postponed the nationwide rollout of its B40 biodiesel mandate, which requires a 40% palm oil blend with diesel, Reccessary reported. Initially set for 1 January, the policy will now take e ect in February, allowing businesses six weeks to adapt. By 2026, the government plans to increase the blend to B50 and eliminate diesel imports.
e biodiesel programme aims to cut reliance on imported diesel while boosting demand for local vegetable oils. Vice Minister of Energy Yuliot Tanjung con rmed that although B40 o cially started on 1 January, businesses were given time to use up existing B35 stocks and adjust technology. Pertamina, Indonesia’s state oil company, has already prepared two re neries for B40 production.
Meanwhile, the Indonesian Palm Oil Association (GAPKI) has raised concerns over a new 10% crude palm oil (CPO) export duty, warning it could make Indonesian palm oil less competitive. On 19 December, the government announced an increase from 7.5% to 10% to fund higher biodiesel subsidies.
“Increasing the export levy will make Indonesian palm oil less competitive compared to neighbouring countries,” said GAPKI Chairman Eddy Martono.
e higher export duty and expanded biodiesel programme could reduce CPO exports, especially with stagnant domestic production. According to the USDA, B40 will increase industrial palm oil use by 1M tonnes in 2024/25, cutting export availability to a record 14.5M tonnes.
Indonesia has tightened restrictions on used cooking oil (UCO) and palm oil residue exports to secure supply for domestic cooking oil and biodiesel production, according to a new government regulation issued Wednesday.
As the world's top palm oil producer, Indonesia aims to support its B40 biodiesel mandate, which raises the palm oil blend in diesel from 35% to 40%. Authorities have been investigating UCO exports, amid reports that government-subsidized "Minyakita" cooking oil was mis-labelled as UCO and shipped overseas for biodiesel feedstock.
e new regulation, e ective immediately, requires exporters of UCO and palm oil residue, including palm oil mill e uent (POME), to obtain government export allocations. ese quotas will be determined by an inter-ministerial panel.
Indonesia Restricts Used Cooking Oil Exports
(8 January 2025)
POME is a key raw material for biogas, fertilizer, and biofuels. In January–November 2024, Indonesia exported 3.95 million metric tons of UCO and palm residue, down 13.75% year-on-year, Statistics Indonesia reported. Despite declining exports, o cials warn of Minyakita shortages and price hikes. Palm oil exporters must sell a portion of their crude palm oil (CPO) domestically at capped prices for Minyakita production. Industry players fear the B40 mandate could disrupt exports, adding pressure to global palm oil markets.
India’s Palm Oil Imports Hit
14-Year Low
(12 February 2025)
India’s palm oil imports in January plummeted 45% from December to 275,241 metric tons, the lowest since March 2011, as re ners favored cheaper soyoil due to negative re ning margins, the Solvent Extractors’ Association of India (SEA) reported.
As the world’s largest vegetable oil buyer, India’s reduced palm oil purchases could weigh on Malaysian palm oil prices while supporting US soyoil futures. e country had previously imported over 750,000 tons of palm oil monthly in the marketing year ending October 2024. Palm oil, typically discounted against soyoil and sun ower oil, has seen rising prices due to shrinking stocks, making rival oils more attractive. In January, soyoil imports rose 5.6% to a seven-month high of 444,026 tons, while sun ower oil imports increased 8.9% to 288,284 tons.
Overall vegetable oil imports fell 14.8% to 1 million tons, an 11-month low, reducing stockpiles to 2.18 million tons, the lowest since April 2022.
Palm oil imports may see a slight rebound in February but will likely stay below normal levels, said Rajesh Patel of GGN Research. He expects soyoil imports to decline while sun ower oil sees a marginal increase.
India Ratings and Research (Ind-Ra) projects that achieving a 5% biodiesel blending target by 2030 will require an investment of Rs 25 billion. A robust supply chain and government incentives, such as tax subsidies, are crucial to boosting adoption by oil marketing companies (OMCs).
Progress has been slow, with only 0.6% blending in FY25 due to low investments and challenges in collecting used cooking oil. e government’s National Policy on Biofuels also targets 20% ethanol blending in petrol to reduce fossil fuel dependence. Diesel consumption is projected to reach 104,000 TMT by 2030, with moderate annual growth.
Feedstock availability remains a key challenge, with ine ciencies in used oil collection and high production costs. While alternative feedstocks like non-edible oils and animal fats are being explored, nancial support is needed to encourage biodiesel adoption.
India Needs Rs 25 Billion to Achieve 5% Biodiesel Blending by 2030s
(13 March 2025)
D&L Industries Considers Second Biodiesel Plant Amid Rising Demand
(24 March 2025)
D&L Industries, Inc., a leading manufacturer of specialty food ingredients and oleochemicals, is evaluating the construction of a second biodiesel plant to meet growing demand following the Philippine government's biodiesel blend expansion.
e company, through its subsidiary Chemrez Technologies, currently operates the largest biodiesel plant in the country with a capacity of 90 million liters annually. e government's mandate has increased the biodiesel blend in diesel fuel to 3% since October 2024, with further increases to 4% in October 2025 and 5% in October 2026.
D&L stated that the favorable regulatory environment and growing awareness of biodiesel’s economic and environmental bene ts make this an opportune time to invest in expansion. e company recently completed its P10-billion manufacturing facility in Batangas and has the nancial exibility for new capital expenditures.
Further investment in biodiesel production is expected to reduce carbon emissions, support the local coconut industry, and decrease reliance on imported fuels. D&L has allocated around P1 billion for capital expenditures this year, with its 2024 net income rising 2% to P2.3 billion despite increased operating costs.
Used cooking oil has emerged as a valuable feedstock for sustainable aviation fuel (SAF), contributing to lower carbon emissions and reducing environmental pollution, according to Malaysia’s Minister of Natural Resources and Environmental Sustainability, Nik Nazmi Nik Ahmad.
Speaking at a used cooking oil collection programme at the Taman Setapak Jaya Ramadan Bazaar, the minister highlighted that the global aviation sector is expected to make SAF usage mandatory in the future. Recycling used cooking oil not only mitigates waterway pollution but also supports decarbonisation in aviation, one of the highest carbon-emitting sectors.
FatHopes Energy CEO, Vinesh Sinha, emphasised that aviation is the hardest sector to decarbonise, as road transport has alternative solutions like electri cation and hydrogen. He also noted strong government support for used cooking oil recycling and called for new policies to regulate the sector.
Used Cooking Oil Gains Importance in Sustainable Aviation Fuel Production
(27 March 2025)
FatHopes Energy collects 2,000–3,000 kg of used cooking oil daily from Ramadan bazaars across Malaysia, including Kuala Lumpur, Sabah, and Sarawak. e company is also engaged with fast food and F&B outlets, operating in 160,000 locations nationwide.
Malaysia and China Strengthen
Palm Oil Cooperation for Market Growth
(24 February 2025)
Malaysia and China are expanding their collaboration in palm oil supply chains, innovation, and market expansion, according to Deputy Plantation and Commodities Minister Datuk Chan Foong Hin. e initiative will boost industry advancements and enhance the value-added applications of palm oil in sectors such as food, personal care, pharmaceuticals, and renewable energy.
Chan emphasised that R&D partnerships between the Malaysian Palm Oil Board (MPOB) and Chinese institutions are driving innovations in healthier edible oils, sustainable biofuels, and premium personal care products. e forum, organised by the Ministry of Plantation and Commodities and Beijing Heyirong Invest Group, served as a platform for strengthening business ties. Beijing Heyirong, a major Chinese palm oil importer, brings in 300,000 tonnes of RBD palm olein and RBD palm stearin annually. Chan highlighted Malaysia’s commitment to ensuring a stable and high-quality palm oil supply for China. He also noted that in 2024, Malaysia’s palm oil exports to China reached RM10.57 billion, with palm kernel oil exports rising by 40%, mainly for China’s oleochemical industry. Malaysia aims to accelerate the commercialisation of high-value palm oil products by partnering with China’s food processing, FMCG, and renewable energy sectors, expanding palm oil applications across the Chinese market.
Photo from BERNAMA
“Updating Technology & Talent for Palm Oil Mill and Downstream” Holiday Inn Bandung Pasteur, Jawa Barat Venue July 8 - 10, 2025 Tue
Decoding Palm Oil: Essential Insights for Balanced and Informed Sustainability Conversations Part III
By Joseph Tek Choon
Charting the Future of Malaysia's Palm Oil Industry
e Malaysian oil palm industry is a beacon of sustainable development and progress. Its journey towards sustainability is an inspiring testament to the potential for further positive changes. ere are always opportunities to bridge gaps and drive for continuous improvement, fuelling hope for a more sustainable future. All innovations and new business ventures, such as advancements in biogas capture, biomass utilisation and renewable energy integration, must be driven by a clear business case. initial support for startups is valuable, long-term success hinges on these innovations proving their tangible cost e ectiveness, pro tability and sustainability in the market.
e Malaysian oil palm sector should focus on these focus areas and essential priorities moving forward to advancing the sectorial resilience and its sustainability blueprint.
Driving Implementing Best Practices: Best Management Practices for oil palm should be integrated for implementation to enhance both productivity and environmental stewardship. e industry must persist in its mission to elevate best practices and e ectively also address leakages such as palm product losses. Both the know-hows and must-have enabling policies must be in place and implemented to address both short and long-term objectives. Embracing these practices and driving innovations will ensure that the sector remains a leader in environmental stewardship.
Conservation E orts: Malaysia's commitment to protecting its invaluable natural habitats should be unwavering. By implementing stricter land-use regulations and bolstering conservation initiatives, we can further prevent encroachment on primary forests and safeguard our rich biodiversity.
Strengthening
Yee
Expanding Bio-Circular Economy including Renewable Ventures: e crop production from harvested oil palm bunches constitutes about 10% of the total biomass, leaving 90% of the biomass yet to be economically utilised. ere is signi cant potential to enhance value addition and expand the use of oil palm vast biomass and explore renewable energy. However, it is crucial that these advancements are economically viable and strategically sound, addressing cost-bene t analysis, change management and resistance to change.
Empowering Smallholders and Working Conditions: Strengthening support for smallholders by teaching them sustainable practices rather than merely providing resources, alongside improving working conditions and workers' rights in the palm oil sector, is essential for fostering a fair and inclusive industry in the context of developing country.
Advocating for Global Food Security: Stakeholders in Malaysia's palm oil sector must intensify their e orts to advocate for its crucial role in global food systems. rough transparent and nuanced discussions with other stakeholders, they can e ectively address misconceptions and highlight the industry's vital contribution to global food and nutrition imperatives
Leveraging Versatility: e versatility of palm oil across various user-industries presents a unique opportunity. Investing in targeted research and technological advancements will ensure that palm oil remains relevant and of high quality, adapting to evolving market needs.
Promoting Innovations: Implementing the most suitable technologies across the supply chain is essential. ere are signi cant opportunities to harness new and evolving technologies under IR5.0, including arti cial intelligence (AI), big data analytics, 5G, the Internet of ings (IoT), GPS, GIS, cloud computing, blockchain and other advanced technological innovations. e journey toward oil palm mechanisation is a long-term commitment that must begin now. It is essential to recognise and embrace this enduring process, understanding that progress will be gradual but valuable. As ongoing negative sentiment around palm oil persists, it is crucial for Malaysia to substantiate its sustainability claims with tangible and data-driven proof. is can be achieved by adopting and advancing new and best- t technologies that demonstrate commitment to sustainable practices.
Fostering Transparency and Accountability: Upholding transparency through thoughtful reporting and traceability is essential. By maintaining high standards of accountability, the industry will build trust and ensure ethical production practices.
Balancing Regulation and Business Imperatives. While sectoral regulation and compliance are essential and may need to evolve, their changes must be justi ed by clear objectives and achievable targets, assessed through a cost-bene t analysis of the technologies used and their alignment with business needs. Defaulters should be held accountable impartially. However, it is crucial to acknowledge that the plantation sector has distinct characteristics that set it apart from other industries. Consequently, regulatory frameworks should be tailored to address these speci c needs, ensuring they are both e ective and practical rather than applied uniformly.
Conclusion
Leadership Going Forward. e journey and collective e orts of all stakeholders in the oil palm supply chain, supported by robust government policies, have been a long and successful saga. It is crucial that this momentum continues. A wake-up call is needed to galvanise all e orts and implement e ective and fearless leadership across the sector, supported by empowering key enablers to achieve higher success rates. Additionally, it is essential to attract and engage Generation Y and Z to ensure the future vitality of the palm oil supply chain.
Malaysians should recognise and celebrate the unique nature of the oil palm sector, which operates in rural environments and is deeply intertwined with natural elements like rainfall and sunlight—unlike assembly lines con ned to roofs. Oil palm trees, biologically robust and perennial, can thrive for up to 25 years once planted. Yet, this vital industry faces distinct challenges. As a commodity traded at market prices, crude palm oil producers are price-takers rather than price-makers, unable to simply pass on rising costs to consumers. Investments in the sector are long-term, with returns uctuating based on market prices, and an initial gestation period of about three years with no income, followed by replanting only a er more than two decades.
e average number of workers per hectare in oil palm plantations is lower compared to other tropical crops. However, the industry remains labour-intensive overall, heavily reliant on foreign workers due to a lack of local interest in low-skilled, o en "3D" (dirty, dangerous, and di cult) jobs, and has yet to see transformative mechanisation breakthroughs. Rising production costs further complicate the situation. Spanning from upstream cultivation to downstream processing, the palm oil sector is a crucial component of Malaysia’s economy, particularly impacting rural areas and aligning with the UN Sustainable Development Goals (SDGs).
Given these complexities, the palm oil sector urgently needs supportive, sustainable, and enabling policies that recognize its long-term cost-productivity, competitive positioning, and commitment to sustainability. e sector’s contributions deserve acknowledgement and proactive support to ensure its continued success and alignment with global standards. In doing so, we can sustain and turn this nature-given resource into a cherished gi for the world, reinforcing Malaysia's role as a responsible global steward.
As been said, Palm Oil: Nature’s Gi to Malaysia and Malaysia’s Gi to the World.
Blessed with oil palm, Malaysia faces a crucial decision about its future: to sink, swim or surf. With its strengths and opportunities in oil palm, the country can either jeopardise its long-term prospects by mismanaging this valuable resource and kill the goose that lays the golden eggs, maintain the status quo with a passive approach akin to ostriches burying their heads in the sand, or seize the chance to ride the wave of success and sustainability.
Pakistan: A Key Growth Market for the Malaysian Palm Oil Industry
Expanding trade partnerships continues to be strategically important in 2025 as Malaysia seeks to solidify its position as a premier global exporter of palm oil. With evolving market requirements, trade policies, and economic dynamics, Pakistan—one of the largest consumers of palm oil—remains a vital destination for Malaysian palm oil exports.
Market Trends and Demand Drivers
Pakistan remains heavily reliant on vegetable oil imports, with palm oil as the dominant choice, primarily sourced from Indonesia and Malaysia. Past e orts to establish local oil palm plantations failed due to unsuitable climate and soil conditions. While oil palm trees can grow in Pakistan, their low productivity makes commercial cultivation unfeasible, reinforcing the country’s continued dependence on imports to meet rising domestic demand.
By Abdul Baqi/Wikicommon
Pakistan’s Edible Oil Scenario
Pakistan’s
Edible
Oil Imports (January–December, in MT)
2023 2022
Product 2024
Pakistan overbought palm oil and palm olein for December shipments, leading to record arrivals of 365,836 MT in January 2025, which caused signi cant congestion at discharge ports. Additionally, Pakistan received 43,000 MT of soybean oil in January 2025.
Pakistan also secured ample soybean oil supplies from December 2024 to April 2025 due to its lower price compared to palm oil.
Historically, Pakistan has been one of the largest importers of Malaysian palm oil and has consistently remained a key market. In 2024, Pakistan imported 860,260 tonnes of palm oil and related products from Malaysia—a signi cant increase from 753,759 tonnes in 2023. At its peak, Malaysia’s palm oil exports to Pakistan reached 2.1 million tonnes in 2010, reinforcing Pakistan's importance as a strategic market.
Key Factors Driving Palm Oil Demand in Pakistan
Growing Food Sector: Pakistan’s food industry, valued at US$115 billion, is projected to grow at a rate of 7.5% over the next ve years. is expansion fuels palm oil demand, which is widely used in food manufacturing, personal care, and oleochemical industries.
Economic Growth: As Pakistan’s economy expands, consumer purchasing power rises, increasing the demand for edible oils. A study on Malaysian palm-based products in major markets, including Pakistan, found that a 1% increase in GDP results in a 0.9% increase in palm oil demand.
Price Competitiveness: e a ordability of Malaysian palm oil makes it an attractive option for Pakistani importers. In 2020, Malaysia's palm oil exports to Pakistan surged due to supply constraints in Indonesia and competitive pricing by Malaysian suppliers.
Bilateral Trade Agreements: e Malaysia–Pakistan Closer Economic Partnership Agreement (MPCEPA), signed in 2008, has facilitated smoother trade, making it easier for Pakistan to import Malaysian palm oil.
Challenges in the Pakistani Market
Despite Pakistan’s strong demand for palm oil, Malaysian exporters face several hurdles:
Intense Competition from Indonesia
Indonesia dominates Pakistan’s palm oil imports, supplying approximately 90% of the market, while Malaysia accounts for just 10%. This dominance is due to Indonesia’s aggressive pricing strategies, preferential trade agreements, and well-integrated supply chains. To gain market share, Malaysia must offer competitive pricing, highlight quality differentiation, and establish strategic partnerships with Pakistani importers.
Foreign Exchange Volatility
Currency fluctuations have added uncertainty to the palm oil trade. The Pakistani Rupee (PKR) remained relatively stable, whereas the Malaysian Ringgit (RM) saw significant volatility. From October 2023 to June 2024, the RM fluctuated between 4.71 and 4.76 against the USD. However, by October 2024, it had appreciated to 4.12, before depreciating again to 4.49 by January 2025. Such fluctuations impact pricing and create challenges in cost management for both exporters and buyers.
Soybean Imports
In January 2025, Pakistan approved the import of GMO soybeans after a two-year gap. This decision will benefit the poultry feed industry, which previously faced high costs due to reliance on non-GMO soybeans. With GMO soybean imports now permitted, industry players are awaiting government approval for GMO canola seed imports as well.
Political Uncertainty
The price of crude oil—a key factor influencing palm oil trade—fluctuates based on geopolitical developments. Global markets have already experienced volatility due to U.S. tariff and trade policies, particularly under Mr. Trump’s administration.
To navigate these challenges, Malaysian exporters should consider strategic hedging mechanisms, exible payment terms, and pricing models that mitigate exchange rate risks while ensuring long-term trade stability.
Opportunities in Pakistan’s Edible Oil Market
Malaysia is reinforcing its position in Pakistan’s edible oil industr y by fostering joint ventures, promoting sustainability, and expanding into value-added palm-based products. Strengthening collaborations with key stakeholders in Pakistan’s oils and fats sector is crucial for securing a competitive edge and ensuring a reliable supply of products.
At the 7th Pakistan Edible Oil Conference (PEOC) 2025, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani engaged with 28 key industr y players, including:
• Pakistan Vanaspati Manufacturers Association
•
• All-Pakistan Solvent Extractors Association
Discussions focused on and exploring technolog y transfers in the downstream sector
A notable industr y recommendation was for Malaysian suppliers to adopt an ex-tank sales model, a trade approach widely practiced in price volatility, lower and better align with local market preferences, strengthening Malaysia’s foothold
Additionally, the Malaysian Palm Oil Board (MPOB) is seeking deeper collaboration with major Pakistani companies like Westbur y Group, which manages Port Qasim’s palm oil imports through Mapak Qasim Bulkers, Mapak Edible Oils, and FWQ Enterprises. Since Port Qasim handles over 90% of Pakistan’s palm oil imports reduce costs, and streamline logistics.
Beyond bulk exports, Malaysia is also expanding into specialty fats, oleochemicals, and high-value palm derivatives, catering to Pakistan’s growing food, personal care, and household sectors. Research and development (R&D) collaborations are also being explored to diversify palm oil applications and ensure products meet evolving consumer demands.
Sustainability remains a priority, with Malaysia actively promoting as a benchmark for responsible sourcing. By emphasising sustainability and Malaysia aims to secure long-term trade growth in Pakistan’s edible oil industr y.
Prepared by : Zahidah Zahidi
Source: MPOB, Keynote Speech by Abdul Rasheed JanMohammad, CEO, Westbur y Group at Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2025).
5th International Oil Palm Biomass Conference 2025 MATRADE Exhibition, Kuala Lumpur, Malaysia
14 - 15 April
15th PALMEX Indonesia 2025 (PALMEX Jakarta)
Jakarta International Expo (JIEXPO), Kemayoran, Jakarta, Indonesia
MPOA Annual Dinner
One World Hotel, Petaling Jaya, Malaysia
17 May
AgTech International Expo
21 -23 May
Andalas Forum VI 2025
Setia City Convention Centre, Shah Alam 22 -23 May
Malaysia Palm Oil Expo (MAPEX) 2025
Dewan Hakka Sandakan, Sabah, Malaysia
11 - 12 June
Asia Palm Oil Thailand 2024 CO-OP Exhibition Centre, SuratthanI, Thailand
7 - 8 August
3rd Sawit Indonesia Expo (SIEXPO) 2025 Pekanbaru Convention & Exhibition Riau, Indonesia
7 - 9 August
SKA Convention Exhibition, Pekanbaru, Riau, Indonesia
Palm Oil TechConnect: Advancing Global Mechanization and Automation Miri, Sarawak, Malaysia 14 - 15 May
TBC July
3rd T-POMI Technology & Talent Palm Oil Mill Indonesia 2025
Holiday Inn Bandung Pasteur, West Java, Indonesia
8 - 10 July
17th National Seminar (NATSEM) 2025
Berjaya Waterfront Hotel, Johor Bahru, Johor, Malaysia
14 - 16 July
11th Indonesia International Palm Oil Machinery & Processing Technology Exhibition 2025 (INAPALM ASIA 2025)
Jakarta International Expo (JIEXPO), Kemayoran, Jakarta, Indonesia
29 - 31 July
Palm Oil TechConnect: Advancing Global Mechanization and Automation
Sandakan, Sabah, Malaysia
TBC August
8th Malaysia International Agriculture Technology Exhibition MITEC Kuala Lumpur, Malaysia
11 - 13 September
PALMEX Medan 2025
Santika Premiere Dyandra Hotel & Convention, Medan, Indonesia
7 - 9 October
Palm Oil TechConnect: Advancing Global Mechanization and Automation
TBC, Kuala Lumpur, Malaysia
TBC October
21st Indonesian Palm Oil Conference (IPOC) and 2026 Price Outlook
Bali International Convention Centre (BICC), Bali, Nusa Dua, Indonesia
Early November
MPOB International Palm Oil Congress and Exhibition (PIPOC) 2025
Kuala Lumpur Convention Centre, Kuala Lumpur, Malaysia
18 - 20 November
2nd Unlocking Revenue and Sustainability: Exploring Carbon Credit Opportunities in the Palm Oil Industry 2025 (Biomass Edition)Kuala Resorts World Awana, Genting Highlands, Malaysiai
5 - 6 December
Key Insights and Analysis: A Review of the CPOPC Market & Outlook 2025
Introduction
e palm oil industry is more than just a commodity market; it is a crucial pillar of the global economy, supporting millions of livelihoods, ensuring food security, and playing an integral role in the biofuel sector.
e Council of Palm Oil Producing Countries (CPOPC) Annual Report on Market & Outlook 2025, released in mid-February 2025, delivers a thorough examination of the industry's trajectory. It explores production trends, evolving market dynamics, regulatory shi s, sustainability imperatives, and future prospects.
For stakeholders across the supply chain - whether policymakers, investors, industry leaders, or analysts—this report is an indispensable tool that illuminates the forces shaping the future of palm oil.
e report sheds light on production dynamics in Indonesia and Malaysia, which together account for over 85% of global palm oil output. Despite ongoing challenges, 2025 is expected to bring moderate growth, in uenced by several critical factors:
Replanting for Yield Optimisation
Aging oil palm trees with declining yields are being systematically replaced with higher-yielding hybrid varieties. ese improved cultivars o er better resistance to pests and diseases, ensuring long-term productivity. Replanting programs also emphasise best agronomic practices to maximise fresh fruit bunch (FFB) production.
Extreme weather events, particularly El Niño cycles, are anticipated to in uence output. Prolonged dry spells may disrupt fruit formation, while excessive rainfall could hamper harvesting. However, producers are mitigating these risks through water management systems, soil conservation techniques, and climate-resilient crop varieties.
Climate Challenges and Adaptive Measures 2
Mechanisation and Automation: e Workforce Challenge
Labour shortages remain a persistent issue, pushing the industry towards increased mechanisation and automation. Investments in AI-driven monitoring, drone-assisted surveillance, motorised harvesting tools, and automated collection systems are expected to enhance operational e ciency and reduce dependency on manual labor.
3
Governments and corporations are tightening land-use policies to meet international sustainability commitments. Strict enforcement of zero-deforestation policies and traceability requirements ensures that new production does not encroach on protected areas. Instead, companies are focusing on yield intensi cation rather than expansion.
Sustainability Commitments Reshaping Production 4
Ongoing advancements in biotechnology and breeding research are crucial to boosting oil palm yields per hectare. Researchers are developing disease-resistant, high-yielding hybrids with shorter maturation periods, addressing the industry's twin challenges of productivity and environmental conservation. R&D in Genetic Improvement and Biotechnology 5
Digital Agriculture and Precision Farming
e adoption of satellite imagery, remote sensing, and big data analytics is revolutionising palm oil cultivation. Plantation managers are leveraging real-time crop health monitoring, AI-driven pest detection, and soil nutrient mapping to optimise eld operations and reduce input costs.
Sustainable Soil and Fertiliser Management
e industry is shi ing towards bio-fertilisers, organic amendments, and sustainable soil management techniques to improve soil health while reducing dependence on chemical fertilisers. Integrated Pest Management (IPM) strategies are also gaining traction, reducing reliance on synthetic pesticides.
6
Strengthening Certi cation and Traceability Standards
Producers are aggressively pursuing certi cations from RSPO, ISPO, and MSPO to bolster market credibility. Enhanced transparency in supply chains is becoming a non-negotiable demand from major buyers and consumers worldwide.
7
Supply Chain Resilience in a Volatile World
e lingering impacts of COVID-19, geopolitical con icts, and global trade disruptions have underscored the need for robust logistics and storage solutions. Producers are investing in alternative trade routes and stockpile management strategies to safeguard supply stability.
8
9
Global Demand and Consumption Patterns
Food and Consumer Goods: Palm oil remains indispensable in cooking oils, confectionery, processed foods, and bakery products.
Palm oil continues to be a cornerstone of the global edible oils market, with demand being driven by:
Biofuels & Renewable Energy: Indonesia’s B40 biodiesel program and the EU’s Renewable Energy Directive (RED II) are major demand drivers.
Consumer Preferences: Increasing health awareness is steering consumers towards sustainably certi ed, traceable palm oil products.
Emerging Market Growth: Rising demand from Africa, Latin America, and South Asia presents fresh growth opportunities.
Industrial Uses: Beyond food, palm oil is a key ingredient in cosmetics, pharmaceuticals, and oleochemicals.
Trade Dynamics and Market Access
EU's Anti-Deforestation Legislation: Exporters must comply with stringent sourcing regulations to maintain European market access.
Market Diversi cation: Expansion into Africa, the Middle East, and South Asia is helping to mitigate reliance on traditional buyers.
e global trade landscape for palm oil is being reshaped by:
Price Competition: Palm oil must contend with price uctuations in soybean, sun ower, and rapeseed oil markets.
Bilateral Trade Deals: ASEAN trade partnerships with China, India, and regional blocs remain critical for export growth.
Geopolitical & Supply Chain Shocks: Shipping disruptions and tari uncertainties are prompting a re-evaluation of export strategies.
Sustainability and ESG Considerations
Sustainability remains the industry's defi ning challenge. Key themes include:
Deforestati on-Free Suppl y Chains: Enhanced traceability and certi fi cati on initi ati ves
Empowerin g Smallholders:
Climate Commitments: Industry-wide carbon reducti on strategies aligned with global climate goals Financial support, training , and market integrati on programs for small-scale farmers
Regenerati ve Agriculture: Promoti ng agroforestry, intercropping , and soil rehabilitati on
Corporate Accountability: Rising pressure for transparent ESG disclosures from global buyers and investors.
e Road Ahead: 2025 and Beyond
Looking to the future, the palm oil industry is set to undergo transformative changes. Key developments to watch include:
AI-Driven Productivity Gains:
Smart plantations, automated monitoring, and AI-enhanced field operations.
Regulatory Shifts:
Adapting to new import regulations in India, the EU, and China.
Expanding Palm-Based Alternatives:
Growth in bioplastics, health-focused palm oil derivatives, and sustain able chemicals
Climate Adaptation Strategies:
Development of drought-resistant palm varieties and climate-resilient farming techniques.
Public Perception & Branding:
A stronger push to counter misinformation and promote palm oil’s economic and environmental benefits
Conclusion: A Future of Opportunity and Responsibility
e CPOPC Market & Outlook 2025 Report paints a picture of an industry at a crossroads - one that must embrace sustainability, innovation, and market adaptability to thrive in the years ahead.
While challenges persist, palm oil remains a highly competitive and essential global commodity.
To navigate these complexities, producers, governments, and businesses must work together - leveraging technology, fostering
Photo from Musim Mas
KEY PALM OIL MID & DOWNSTREAM STAKEHOLDERS:
MINISTRY, ITS AGENCIES AND RELATED ASSOCIATIONS
MALAYSIA
Ministry of Plantation and Commodities (KPK) www.kpk.gov.my
Malaysia Biomass Industries Confederation Www.biomass.org.my
Malaysian Oleochemical Manufaturers' Group (MOMG) www.momg.org.my
Badan Pengelola Dana Perkebunan Kelapa Sawit (BPDPKS) Indonesian Palm Oil Plantation Fund Management Agency https://www.bpdp.or.id/
Asosiasi Produsen Oleochemical Indonesia (APOLIN) Indonesian Oleochemical Producers Association https://apolin.org/
Malaysian Palm Oil Board (MPOB) www.mpob.org.my
Malaysian Palm Oil Association (MPOA) www.mpoa.org.my
Malaysian Biodiesel Association (MBA) www.mybiodiesel.org.my
Malaysian Palm Oil Council (MPOC) www.mpoc.org.my
Malaysian Sustainable Palm Oil (MSPO) www.mspo.org.my
The Federation of Palm Oil Millers Association of Malaysia (POMA)
Malayan Edible Oil Manufacturers' Association (MEOMA) meoma.org.my/v1
INDONESIA
Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI) Indonesian Palm Oil Association https://gapki.id/en/
Asosiasi Produsen Biofuel Indonesia (APROBI) Indonesian Biofuel Producers Association https://www.aprobi.or.id/
Indonesian Oil Palm Research Institute (IOPRI) Pusat Penelitian Kelapa Sawit (PPKS) https://iopri.co.id/
Gabungan Industri Minyak Nabati Indonesia (GIMNI) Indonesian Vegetable Oil Industry Association https://gimni.org/
Palm Oil Re ners Association of Malaysia www.poram.org.my
Malaysian Oil Scientists' and Technologists' Association (MOSTA) mosta.org.my
Palm Oil Agribusiness Strategic Policy Institute (PASPI) https://palmoilina.asia/
Indonesian Biomass Energy Masyarakat Energi Biomassa Indonesia (MEBI) https://mebi.or.id/
YOUR AUDIENCE IS READING
Hosted by :
Co-host:
Suppor ted by :
Organised by :
Seminar Registration:
