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Malaysia’s Plantation and Commodities Minister, Datuk Seri Dr Noraini Ahmad, has announced that the nation's palm oil production is currently meeting projected targets and could potentially exceed the record levels established in 2025. This positive outlook remains firm despite the potential disruptions posed by the Super El Niño weather phenomenon. Last year's crude palm oil (CPO) production reached a ten-year high of 20.28 million tonnes, according to data from the Malaysian Palm Oil Board (MPOB).
Speaking at the Malaysian Palm Oil Forum Kuala Lumpur 2026 on Wednesday, Noraini expressed confidence in the sector's performance with two months remaining in the year. She noted that current trends suggest production will be at least on par with, or perhaps better than, the previous year. While the MPOB has officially forecast CPO production between 19.5 million and 19.8 million tonnes for the year, cumulative output for the first eight months has already reached approximately 12.63 million tonnes, bolstered by an August output of 1.82 million tonnes.
Market participants are anticipating official September data next week. However, a Bloomberg survey of industry insiders estimates a 16% month-on-month surge in production to 2.11 million tonnes for September, which would represent a record high for that specific month. Historically, September and October serve as the peak production window for the industry. To support this supply, the Ministry, alongside the Malaysian Palm Oil Council and MPOB, is ramping up marketing and promotional initiatives.
In addition to production metrics, Minister Noraini urged the industry to capitalize on biomass waste as a secondary revenue stream. By processing materials such as empty fruit bunches, fibre, palm kernel shells, and fronds into renewable energy and high-value bio-products, the industry can further Malaysia's national goals for resource efficiency. Many mills already utilize biomass for internal steam and power generation, but the Minister emphasized that the next strategic step is full-scale commercialization.
Realizing the economic potential of biomass and palm oil mill effluent for biogas requires the integration of advanced technology, capital investment, and robust business partnerships. Noraini encouraged a collaborative approach between industry stakeholders, researchers, and investors to explore these emerging opportunities in the circular economy.
Source: The Edge Malaysia