Malaysian Palm Oil Market Expected to Remain Positive

Malaysian Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani expects the country’s palm oil market to remain positive this year, citing demand from top export destinations such as India, China, and the European Union, with respective market shares at 17.4 percent, 9.1 percent, and 7.4 percent.  He said the demand is further supported by the interest in replenishing stocks to ensure food security and the overall viability of business activities.
The Malaysian Palm Oil Board (MPOB) estimates that crude palm oil (CPO) production in 2024 to reach 18.75 million MT as against 18.55 million MT in 2023.  “This marginal (production) increase of about one percent compared to 2023 will be driven by improved labor market conditions and a higher number of oil palm trees maturing,” he said in his keynote address at the 35th Palm and Lauric Oils Price Outlook Conference and Exhibition (POC2024) earlier this week in Kuala Lumpur.
 
He said to realize the positive estimates for this year, it is crucial to act swiftly and address key challenges in the industry, namely, managing the negative perceptions against palm oil, the sizable opportunity loss arising from inefficient smallholders, climate change (El Niño) and labor issues.