Kuala lumpur: The palm oil sector in Malaysia is expected to remain stable by 2026, in line with the rebound in soybean oil prices that will narrow the large price gap between the two oils, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. He noted that the recovery in soybean oil prices would strengthen Malaysia’s palm oil sector.

According to BERNAMA News Agency, Johari emphasized that the price of crude palm oil (CPO) is expected to trade above RM4,000 per tonne by the end of the year. “Today, the price of CPO is still above RM4,200 per tonne. It is normal for the market to fluctuate up and down. We remain confident that the price will trade above RM4,000 per tonne, and we are quite bullish on this outlook,” he said during an industry dialogue with palm oil buyers from China.

Johari highlighted Malaysia’s focus on increasing palm oil yield through the use of good planting material and sustainable practices. He stated, “We also focus on turning palm oil waste into a circular economy, such as using empty fruit bunches (EFB) as feedstock for renewable energy and used cooking oil (UCO) for sustainable aviation fuel (SAF).”

In addressing concerns about potential impacts from recent floods, Johari assured that the palm oil production remains unaffected. “Currently, we have not received any reports (on floods) yet. My concern is for the smallholders, as such situations could affect them and be costly, impacting their revenue and income. But for now, the palm oil sector is still okay,” he added.

Malaysia continues to hold its position as the second-largest palm oil producer globally, following Indonesia. Currently, Malaysia has produced 19.4 million tonnes of palm oil, compared to Indonesia’s 50 million tonnes.