Kuala lumpur: 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).
According to BERNAMA News Agency, MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir stated that the outlook is also supported by firmer global commodity prices, particularly crude oil and soybean oil, which continue to underpin palm oil prices. He mentioned that higher palm oil stocks above three million tonnes do not significantly affect CPO prices due to demand and uncertainties surrounding Indonesia's plan to increase the biodiesel mandate from B40 to B50.
Dr Ahmad Parveez highlighted that the Indonesian government's management of plantation estates previously held by companies reportedly operating illegally has raised concerns about productivity, as the takeover involves more than one million hectares. The interview was conducted on Bernama TV's The Nation programme focused on 'Malaysia's Palm Oil Industry Performance and Outlook.'
A significant milestone for Malaysia's palm oil industry was achieved in 2025, with CPO production reaching 20.28 million tonnes, the highest on record. 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.
Dr Ahmad Parveez emphasized the importance of enhancing productivity and maintaining a sustainable palm oil market. He urged industry players to invest in innovation and mechanisation to reduce dependence on foreign labour. He also highlighted the need for investment in replanting using high-quality planting materials to enhance yields and ensure long-term sustainability.
Regarding the European Union Deforestation Regulation (EUDR), Dr Ahmad Parveez noted that MPOB is working to ensure a smooth transition and that industry players, including smallholders, are fully prepared to comply. He expressed hope that the EU will reconsider the regulation's conditions to make compliance more manageable.
On December 22, 2025, the European Parliament voted to delay the EUDR by one year, setting implementation for December 30, 2026, for large and medium operators, and June 30, 2027, for small and medium enterprises. A 'simplification review' of the legislation was also decided.