Malaysia expects palm oil market growth in 2026
Malaysia is optimistic about 2026 prospects for the palm oil sector, citing stronger global cooperation and sustainability efforts. In 2025, exports rose to RM112.51 billion, while crude palm oil output hit a record 20.28 MMT. Despite geopolitical and climate challenges, the industry remains resilient and growth-focused.
Malaysia remains confident that 2026 will bring new opportunities for the global palm oil industry, through enhanced international cooperation, improved terms of trade, and joint efforts to enhance the sustainability and resilience of the industry.
Despite ongoing global uncertainties, the palm oil industry maintains its growth momentum, reflecting the high level of trust in Malaysia as a stable and responsible supplier, Plantations and Commodities Minister Datuk Seri Dr Noraini Ahmad said during the 37th Palm and Lauric Oils Conference and Exhibition.
In 2025, the total export value of palm oil and palm oil products increased to RM112.51 billion (USD28.68 billion), up from RM109.39 billion in 2024. This reflects robust global demand and Malaysia’s focus on improving product quality, supply security, and investment in value-added products.
At the same time, the industry faced challenges, including geopolitical tensions that disrupted trade flows, logistics, and energy markets, forcing adjustments to supply chains and trade activities, increasing instability in agriculture and commodity markets.
Climate change, stringent environmental regulations, and shifts in the demand structure for vegetable oils added pressure. Furthermore, weather risks and biofuel policies impacted the supply-demand balance and increased price sensitivity for palm, soybean, and sunflower oils.
Despite challenges, domestic crude palm oil production reached a record 20.28 million tonnes in 2025, exceeding 20 million tonnes for the first time. Minister Noraini emphasized that the industry stepped up certification and product traceability during the year, increasing the confidence of global buyers and consumers. By 2026, close collaboration between all stakeholders in the supply chain—producers, traders, policymakers, and consumers—will be key to success, managing market volatility, regulatory changes, and fluctuations in demand.
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Source : Ukr Agro Consult
