PUTRAJAYA: The Plantation and Commodities Ministry has reaffirmed its commitment to strengthening the nation’s biofuel industry through a holistic approach and technological innovation, amid ongoing public discourse on Malaysia’s biodiesel direction.
In a statement on Friday (April 24), the ministry said it welcomed the growing healthy debate among government leaders and industry experts, describing it as a reflection of a shared commitment to energy sustainability and national commodity security.
“The National Biodiesel Programme is currently implemented at the B10 level for the land transport sector and is being expanded in stages towards B20,” the ministry said.
It added that the rollout is sustainably supported by an established supply chain comprising 19 licensed biodiesel plants supplying Palm Methyl Ester (PME) to 34 blending depots nationwide.
The ministry noted that Malaysia’s biodiesel production capacity meets international quality standards, underscoring the industry’s readiness, infrastructure strength and domestic supply chain resilience. This, it said, reinforces confidence in the country’s transition to B20 blends, in line with the National Agricommodity Policy 2021–2030.
Beyond crude palm oil (CPO) as feedstock, the Government is encouraging the use of second-generation materials such as sludge palm oil and used cooking oil to produce biofuels, including Sustainable Aviation Fuel (SAF) and Used Cooking Oil Methyl Ester (UCOME).
The ministry said second-generation biofuel production in Malaysia is largely export-oriented, driven by strong global demand for low-carbon fuels and the need to comply with international sustainability standards.
It added that the ministry is reviewing the National Biofuel Policy in line with the country’s energy transition agenda and its net-zero target by 2050.
“This strategic move aims to strengthen national energy security through the utilisation of biomass resources and circular economy practices, while ensuring Malaysian biofuel products remain competitive and meet global sustainability benchmarks in addressing climate change,” it said.
The ministry said it will continue to enhance strategic collaboration through ongoing engagements with stakeholders and industry players to ensure policies are grounded in comprehensive analysis.
