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KUALA LUMPUR – Malaysia, the world’s second-largest palm oil producer, has expressed its readiness to bolster the Philippines' strategic efforts to expand its domestic palm oil industry. The Malaysian Palm Oil Council (MPOC), the industry’s primary market development body, confirmed its commitment to supporting the Philippines in scaling up its production capabilities.
Belvinder Sron, CEO of the MPOC, stated that Malaysia is prepared to share its extensive expertise and technical know-how to facilitate the growth of the Philippine sector. She highlighted Malaysia’s storied history in oil palm cultivation, noting that the nation has accumulated over a century of experience since its first commercial planting in 1917.
Sron emphasized that Malaysia operates one of the world's premier research and development institutes dedicated to palm oil, which stands ready to assist any country looking to enhance its domestic industry. 'Technical assistance is readily available from Malaysia for any country that needs it,' she noted.
The Philippines is currently targeting the development of approximately 300,000 hectares of oil palm plantations. According to the Department of Agriculture (DA), this initiative is vital to boosting local output and curbing the nation's heavy reliance on foreign imports. Sron pointed out that the high-yielding nature of the crop makes it an attractive opportunity for nations seeking to secure their domestic supply of oils and fats.
Furthermore, the MPOC expressed interest in potential collaboration with the Philippine coconut oil sector. Sron indicated that while such a partnership has not yet been formalized, Malaysia remains open to discussions. She described a potential collaboration as a 'win-win situation,' particularly given the extensive use of coconut oil within the oleochemical sector.
Domestic statistics reveal that the Philippines consumes over one million metric tons (MT) of palm oil annually, yet local production only satisfies about nine percent of this demand. The remaining 91 percent is imported, primarily from regional leaders Indonesia and Malaysia. In 2025, Philippine production reached approximately 140,000 MT from roughly 63,380 hectares of plantations.
To drive this expansion, the DA is requesting P300 million for palm oil development in its 2027 budget. The agency estimates that a total investment of about P1 billion per year will be required over the next five years to build a robust industry. Strengthening local production is expected to provide essential raw materials for food and industrial applications, as well as critical feedstock for the biofuel industry.
Source: Philstar.com