The Malaysian Palm Oil Board (MPOB) expects palm oil exports to recover in the second half of 2025 driven by stronger festive season demand in key markets.
MPOB Director-General Datuk Dr Ahmad Parveez Ghulam Kadir said demand from India was driven by festive season stock needs, attractive palm oil prices and lower import duties on crude vegetable oil.
He also said that despite the decline in export volume, Malaysia's palm oil and product revenue increased by 9.3% to RM53.43 billion during January to June 2025 with export value reaching RM34 billion.
According to MPOB data, palm oil and palm-based product exports in the second half of this year declined by 7.4% to 11.39 million tonnes compared to the January to June period last year.
Palm oil exports declined by 7.7% to 6.95 million tonnes over the six-month period due to weak demand from India, China, the European Union (EU), Bangladesh and Egypt.
Furthermore, although total palm oil exports declined in the first half of 2025, Malaysia recorded growth in exports to Iran, Kenya, Nigeria and the Philippines.
Malaysia's palm oil exports for the full year 2025 are projected to decline by 5.3% from the 16.9 million recorded in 2024.
