
Malaysia has no plans to raise its palm oil biodiesel blending rate to 20% from the current 10%, as developing the necessary infrastructure would require funding that neither industry nor the government is willing to provide.
According to Malaysian Plantation and Commodities Minister Johari Abdul Ghani, implementing a 20% blend faces challenges, as it would require infrastructure investment estimated at around US$146.2 million.
Malaysia currently mandates a 10% biodiesel blend, while a 20% rate is applied in Labuan and Langkawi, as well as in the state of Sarawak excluding Bintulu, the minister said.
"Our discussions with industry stakeholders show that they want the government to fund this project, but we are not prepared to do that," he added.