Malaysia’s palm oil output could exceed 2025 level
MPOB forecasts 2026 crude palm oil production of 19.5 million to 19.8 million tonnes, against last year’s 20.28 million tonnes.
Malaysia could produce more palm oil in 2026 than in 2025 despite Super El Niño risks, Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said on Oct 7. She said output was tracking expectations and anticipated production would at least match last year’s level.
Speaking to reporters at the Malaysian Palm Oil Forum Kuala Lumpur 2026, Noraini gave an outlook that differed from the Malaysian Palm Oil Board’s (MPOB) forecast. The board expects crude palm oil (CPO) output of 19.5 million to 19.8 million tonnes this year. According to MPOB, 2025 production reached 20.28 million tonnes, a decade high.
MPOB’s latest figures put cumulative output at about 12.63 million tonnes over the first eight months, including 1.82 million tonnes in August. A Bloomberg survey of industry participants estimated September production may have risen 16% month-on-month to 2.11 million tonnes. Official September figures were not yet available.
Separately, Noraini urged the industry to commercialise biomass waste through renewable energy and higher-value products, creating another source of revenue. She said this would contribute to Malaysia’s renewable energy goals and improve resource use.
Materials generated by mills include fibre, empty fruit bunches and palm kernel shells, while mill effluent can produce biogas. Many mills already generate steam and electricity from biomass for their operations. Noraini said wider commercialisation would require suitable technology, investment and business partnerships.
