By Danni Haizal Danial Donald
KUALA LUMPUR, Feb 25 (Bernama) -- Crude palm oil (CPO) prices are expected to remain stable in the near term at around RM4,000 per tonne, supported by strengthening demand amid Indonesia’s plan to implement the B50 biodiesel mandate, according to the Malaysian Palm Oil Board (MPOB).
Its director-general Datuk Dr Ahmad Parveez Ghulam Kadir said the outlook is also supported by firmer global commodity prices, particularly crude oil and soybean oil, which continue to underpin palm oil prices.
“Currently, the higher palm oil stocks above three million tonnes does not really affect (CPO) price. It is because of the demand and also uncertainties surrounding Indonesia, as the country is planning to increase to (biodiesel) B50 mandate; now they are (implementing) B40.
“At the same time, the Indonesian government has begun managing plantation estates previously held by companies that were reportedly operating illegally, as the takeover of more than one million hectares has raised concerns that productivity could be affected,” he said in an interview after appearing as a guest on Bernama TV’s The Nation programme on “Malaysia’s Palm Oil Industry Performance and Outlook” hosted by Jason Wee.
To recap, 2025 marked a major milestone for Malaysia’s palm oil industry, with CPO production reaching 20.28 million tonnes, the highest on record and surpassing 20 million tonnes for the first time.
Malaysia’s palm oil export performance also strengthened in 2025, with the total export value of palm oil and palm oil-based products rising to RM112.51 billion from RM109.39 billion in 2024.
Furthermore, Ahmad Parveez said, it is crucial for industry players to further enhance productivity while maintaining a more sustainable and reliable palm oil market.
“It is time for industry players to invest in innovation and mechanisation. As the industry continues to rely heavily on foreign labour, we hope more companies will channel their profits into mechanisation and automation to reduce dependence on labour, particularly foreign workers.
“It is also important to invest in replanting, using high-quality planting materials to enhance yields and ensure long-term sustainability,” he said.
On the European Union Deforestation Regulation (EUDR), he said MPOB is working to ensure a smooth transition and that industry players, including smallholders, are fully prepared to comply with the new requirements.
“We really hope that (the EU) have a look again about asking countries to comply with their conditions (EUDR) and whether, if the countries cannot comply, they are going to really stop this product from coming into their country.
“We (MPOB) are doing our very best to comply but we really hope they will be more forward-looking to reduce the requirements, to make (the regulation) simpler,” said Ahmad Parveez.
On Dec 22, 2025, the European Parliament voted to delay the EUDR by one year, with implementation now set for Dec 30, 2026, for large and medium operators and June 30, 2027, for small and medium enterprises. It also decided to carry out a “simplification review” of the legislation.
-- BERNAMA
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