This year Malaysia’s biodiesel exports are expected to reach the highest level in five years

This year, Malaysian biodiesel exports are expected to reach their highest level since 2019, while production and consumption are expected to remain unchanged, according to the USDA’s latest forecast.

Biodiesel production in Malaysia is expected to remain flat at 1.58 billion litres in 2024 as the country is likely to remain at the B10 blend rate as the B20 and B30 mandatory targets have yet to be met. The country’s recent proposal to limit fuel subsidies in the 2025 budget is expected to reduce consumption slightly in the short term, while changes to the palm oil export tax structure may incentivise more downstream production, such as biofuels. The country hopes to further utilise local palm products for biofuel production, culminating in an investment in a sustainable aviation fuel refinery in Johor, which is scheduled to be operational by 2028. There is currently no fuel ethanol market in Malaysia due to the abundance of palm feedstock.