Lang
The Malaysian Palm Oil Board released its monthly report documenting the performance of the palm oil sector in April 2026. The figures show changing dynamics within the industry, with a strong increase in production alongside mixed movements in exports and stocks.
1. Strong Production Growth
Crude palm oil production rose 18.37% in April to 1,629,801 tonnes, compared with 1,376,849 tonnes in March. The increase was not limited to one region, but covered Peninsular Malaysia, Sabah and Sarawak. Production of palm kernel and crude palm kernel oil also increased strongly, reflecting seasonal activity or improved harvesting and extraction conditions.
2. Stable Stocks with Regional Differences
Despite the production jump, total crude palm oil stocks increased only slightly by 0.54%. However, regional distribution showed clear differences. Stocks in Peninsular Malaysia fell by more than 16%, while stocks rose sharply in Sarawak and Sabah. This may reflect higher refining and local processing activity in the peninsula.
3. Export Challenges and Value-Added Growth
Total palm oil exports declined 14.34% to 1,302,979 tonnes, possibly due to fluctuations in global demand or stronger competition in international markets. However, other export categories performed strongly. Biodiesel exports increased by 193.04%, while oleochemical exports rose by nearly 24%.
This points to progress in strengthening the value chain and moving toward renewable energy products and chemical industries with higher margins, instead of relying mainly on crude oil exports.
4. Higher Fresh Fruit Bunch Prices
Fresh fruit bunch prices rose 5.82% to RM50.55, which is a positive signal for farmer profitability. The increase may have been supported by demand from the biodiesel and oleochemical sectors.
Conclusion
The April 2026 report presents a picture of a resilient Malaysian palm oil sector. While lower palm oil exports remain a challenge, higher production and stronger value-added exports show that diversification and value maximization are becoming key drivers of future growth and stability.
