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MKH Oil Palm Confident CPO Prices Will Remain Strong in 2026 as Profits Hit Record High



Doc. InfoSAWIT/Ilustration of Crude Palm OIl (CPO).
MKH Oil Palm Confident CPO Prices Will Remain Strong in 2026 as Profits Hit Record High

InfoSAWIT, KUCHING —Palm oil plantation company MKH Oil Palm (East Kalimantan) Bhd remains optimistic that crude palm oil (CPO) prices will stay firm throughout 2026, supported by strong global demand and relatively tight supply.

Citing the company’s 2025 annual report, as published by InfoSAWIT from The Borneo Post on Monday (2 February 2026), CPO prices in Indonesia are currently trading between RM3,350 and RM3,550 per metric tonne, after levies and export duties.

Group non-independent non-executive chairman Chen Kooi Chiew said the robust market outlook contributed to the company’s strongest financial performance on record. In FY2025, MKH Oil Palm recorded its highest-ever revenue of RM363.2 million, with profit before tax reaching RM107.3 million.

Operational improvements in East Kalimantan plantations, including mechanised FFB collection and enhanced digital monitoring systems, supported efficiency gains and higher oil extraction rates.

The company also highlighted the development of Indonesia’s new capital, Nusantara, as a positive regional catalyst. Meanwhile, MKH maintained a balanced dividend policy, declaring a final dividend of 4 sen per share, equivalent to RM40.6 million, while continuing community development programmes across Malaysia and Indonesia. (T2)

 

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