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Malaysia is set to strengthen its position as a primary palm oil supplier to the Philippines, aiming to sustain export growth even as its neighbor seeks to bolster domestic production, according to the Malaysian Palm Oil Council (MPOC).
Speaking at the 2026 Malaysian Palm Oil Forum, MPOC Chief Executive Officer Belvinder Sron highlighted that shipments to the Philippines have already surpassed the 700,000-ton mark. While specific projections are still being finalized, Sron noted that the strong performance across ASEAN markets suggests a continued upward trajectory for Philippine-bound exports.
As the world's second-largest producer, Malaysia saw its export revenue climb 2.8% to 112.43 billion ringgit in 2025. The Philippines remains a critical partner, currently relying on imports for nearly 90% of its palm oil requirements. Data from the Malaysia Palm Oil Board (MPOB) shows that 421,863 tons were exported to the Philippines in the first seven months of the year alone.
Malaysia's strategy involves moving beyond crude oil into high-value segments, including oleochemicals, shortening, and palm tocotrienols. Sron emphasized the untapped potential in the Philippine HORECA (hospitality, restaurant, and catering) and consumer sectors. Furthermore, Malaysia is offering to share its century-long expertise and R&D capabilities with countries looking to develop their own oil palm industries, including the Philippines, which recently sought budgetary support to expand its plantations to 300,000 hectares by 2028.
Regional dynamics are also playing in Malaysia's favor. Indonesia's aggressive B50 biodiesel mandate is expected to consume 16.3 to 17 million metric tons of its crude palm oil domestically. This shift is likely to tighten global export supply, positioning Malaysia to fill the void. Despite potential price fluctuations, the MPOC remains bullish, targeting total global exports of over 16 million tons by year-end, up from 15.2 million tons last year.
Source: BusinessWorld Online