Lang
Palm oil companies listed in Singapore have attracted stronger investor attention since the beginning of the year, supported by firmer palm oil prices and renewed interest in biodiesel-linked demand.
Kencana Agri was among the strongest performers. Its share price doubled to S$0.53 on May 6, compared with S$0.26 at the end of 2025. The rise followed the company’s announcement that 2025 net profit increased 54% to US$18.4 million.
Wilmar International, the largest Singapore-listed palm oil company by market capitalization, also rose 21.8% year-to-date to S$3.75.
Main Factors Behind the Price Rise
The average crude palm oil futures price on Bursa Malaysia increased from RM4,043 per tonne in December 2025 to RM4,570 per tonne in April 2026. The rise was supported by higher energy prices, stronger biodiesel policies in Southeast Asia, and weather concerns that could affect output.
Indonesia is pushing forward with higher biodiesel blending, Malaysia plans to raise its blend gradually, and Thailand continues to support higher biodiesel use. These policies are helping strengthen demand for palm oil as a fuel feedstock.
Sustainability Remains Important
At the same time, sustainability and climate-related reporting remain important issues for palm oil companies. Exporters may need greater transparency and stronger compliance systems as international buyers and regulators increase requirements.
Conclusion
Supportive fundamentals point to an important year for palm oil companies. While higher prices may support earnings, companies may also need to invest in long-term sustainability and supply chain resilience.
Source: Business Times
