According to the latest data released by the Malaysian Palm Oil Board (MPOB) for January 2025, Malaysia's palm oil sector is navigating a unique set of market conditions. While overall export volumes fell compared with the same period last year, total export value rose significantly. This development reflects shifting dynamics in global demand and pricing for one of the world's most widely used vegetable oils.
Decline In Total Export Volume
Data from the Malaysian Palm Oil Council show that total Malaysian palm oil exports in January 2025 reached 1.17 million tonnes, down 13.4% from 1.35 million tonnes in January 2024. This volume decline reflects changes in global demand and market preferences, which may be influenced by factors such as:
- Competition from other vegetable oils: such as soybean oil, sunflower oil and rapeseed oil, which can erode palm oil's market share.
- Import regulations and trade policies: differences in tariffs or new trade agreements may shift demand among certain importing countries.
Despite the overall decline in volume, key export markets showed mixed performance.
A Look At The Leading Markets
- Kenya
- January 2025: 129,143 tonnes
- January 2024: 89,538 tonnes
- Change: +44.2%
The rise in imported volumes may be linked to strong domestic demand growth and Kenya's role as a distribution hub for East Africa.
- India
- January 2025: 112,206 tonnes
- January 2024: 190,601 tonnes
- Change: -41.1%
The sharp drop in India's imports is notable, and could be attributed to policy adjustments affecting edible oil imports, growing reliance on domestic oilseeds, or a shift towards alternative suppliers.
- Turkey
- January 2025: 95,210 tonnes
- January 2024: 64,580 tonnes
- Change: +47.5%
This notable increase points to rising Turkish demand, possibly aimed at re-exporting or meeting the needs of a growing food processing sector.
- European Union (EU)
- January 2025: 92,210 tonnes
- January 2024: 71,550 tonnes
- Change: +28.9%
Despite ongoing sustainability debates in the EU, the bloc increased its imports of Malaysian palm oil, which may reflect short-term market needs and favourable prices.
- Philippines
- January 2025: 72,170 tonnes
- January 2024: 51,629 tonnes
- Change: +39.7%
This increase reflects growing demand for palm oil-based products, alongside the expansion of the food processing sector in the Philippines.
Rise In Total Export Value
In contrast to the decline in export volumes, the total value of exports in January 2025 rose to 6.15 billion ringgit, an increase of 14.5% compared with 5.37 billion ringgit in January 2024. This divergence indicates that higher average prices offset the decline in export volumes. Possible reasons for this include:
- Supply constraints caused by weather conditions in palm-growing regions.
- Exchange rate fluctuations, which can make Malaysian palm oil more expensive—or more attractive—depending on global currency movements.
- Strong global commodity prices for vegetable oils, driven by volatile market conditions.
