Malaysia to Fast-Track SAF Approvals to Attract Investment and Build Regional Hub

Malaysia announced on December 15 that it will accelerate and streamline approval processes related to Sustainable Aviation Fuel (SAF), including permits for plant construction, production, and exports, in order to attract more foreign investors and strengthen the country’s position as a regional SAF hub.

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the government aims to make it easier for companies to do business in Malaysia, while sending a clear signal of policy support to investors interested in entering the SAF sector. He made the remarks while responding to a question in the Senate.

Johari noted that Malaysia is leveraging its status as the world’s second-largest palm oil producer to develop SAF using used cooking oil (UCO), palm oil mill effluent oil, and other palm-based biomass residues. He added that the government is also increasing public awareness of UCO recycling and studying mechanisms to ensure a sustainable long-term feedstock supply.

The move comes as the International Air Transport Association (IATA) recently warned that global SAF production growth is expected to slow, with output projected to reach 2.4 million tonnes next year, highlighting opportunities for countries with strong feedstock and policy support.