InfoSAWIT,  KUALA LUMPUR — Malaysia’s palm oil industry is eyeing more aggressive expansion in the United States following zero-tariff access for selected palm-based products under the Malaysia–US Agreement on Reciprocal Trade (ART).

MPOB Director General Ahmad Parveez Ghulam Kadir said Malaysia’s palm oil exports to the US remained resilient in 2025, with shipments from January to November edging up to 173,005 tonnes.

Export value surged 9.4 percent to RM857.32 million, driven mainly by high-value downstream products such as oleochemicals and specialty fats, which enjoy stronger pricing power and customer loyalty.

“Malaysia remains competitive by focusing on value-added products while ensuring quality, supply continuity, and product diversity for US buyers,” he told Business Times.

Sustainability Advantage

Ahmad Parveez said Malaysia is well positioned to meet increasingly stringent global sustainability regulations, including the European Union Deforestation Regulation (EUDR).

Strengthening the Malaysian Sustainable Palm Oil (MSPO) 2.0 certification scheme and implementing the National Traceability System are key pillars in ensuring transparency and compliance.

“These initiatives integrate plantation mapping, licensing data, and certification, enhancing Malaysia’s credibility in global markets,” he said.

Opportunities and Risks

Plantation economist Mohd Zulkufli Zakaria said zero-tariff access to the US could be a game changer, potentially boosting Malaysia’s palm oil exports by one to two million tonnes, particularly for biofuel-related demand.

However, stricter EU deforestation rules could disproportionately affect smallholders and reshape export patterns.

“Exports to the EU could fall by as much as 30 percent, pushing Malaysia to redirect volumes to India, China, the Middle East, and Africa,” he said.

While Indonesia remains the world’s largest exporter, Malaysia could leverage its sustainability credentials to capture premium market segments—especially in certified downstream products. (T2)