KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) foresees palm oil exports remaining stable at around 16 million tonnes in 2027, with the country expected to play an increasingly important role in supplying palm oil to global consumers.
Citing independent global market analyses and forecasts by Oil World, MPOC said Indonesia’s palm oil production is forecast to decline by 1.9 million tonnes in 2027, while Malaysia’s production is forecast to fall by 0.7 million tonnes.
“Indonesia’s exports are also projected to decline by almost three million tonnes in 2027, reflecting firmer domestic demand from biodiesel blending and a weaker production outlook.
“As a result, Malaysia is expected to become an increasingly important source of palm oil for global consumers, while the country’s current high stock level is likely to be temporary,” it said in a statement yesterday.
MPOC noted that Malaysia’s palm oil production rose marginally by 1.4% month-on-month to 1.81 million tonnes in August 2026, supported by higher fresh fruit bunch collection and an improvement in the oil extraction rate from July.
Nonetheless, output remained below the level recorded a year earlier, marking the sixth consecutive month of year-on-year decline since March 2026, while cumulative palm oil exports from January to August 2026 rose by 806,000 tonnes to 10.4 million tonnes.
However, exports fell 7.5% month-on-month in August to 1.29 million tonnes, weighed by weaker shipments to South Asia and the Middle East. — Bernama
