Malaysia Reconsiders 1% SAF Blending Mandate for International Flights

Malaysia is reviewing its plan to introduce a mandatory 1% sustainable aviation fuel (SAF) blending requirement for international flights departing from Kuala Lumpur International Airport (KLIA), originally scheduled to take effect in January 2027.

Plantation and Commodities Minister Noraini Ahmad said the government is consulting industry stakeholders to assess the impact of rising operating costs and financial pressures on airlines amid ongoing geopolitical tensions and volatility in global energy markets.

Despite the potential policy adjustment, Malaysia continues to expand its SAF production capacity. EcoCeres’ Johor facility began operations in October 2025, with an approved annual capacity of 420,000 tonnes. Meanwhile, Petronas’ Pengerang biorefinery is expected to start operations in the second half of 2028, with an annual capacity of 650,000 tonnes.

Together, the two projects could give Malaysia more than 1 million tonnes of annual SAF production capacity by 2028, strengthening its ambition to become a regional SAF production hub.