Malaysia Set to Remain Top Palm Oil Exporter in 2027 Amid Global Production Decline
The Malaysian Palm Oil Council (MPOC) expects Malaysia's palm oil exports to remain steady at around 16 million tonnes in 2027, despite a forecast decline in global production. According to independent market analyses by Oil World, Indonesia's palm oil production is set to fall by 1.9 million tonnes in 2027, while Malaysia's output will decrease by 0.7 million tonnes.
Indonesia's exports are projected to decline by almost three million tonnes in 2027 due to firmer domestic demand from biodiesel blending and a weaker production outlook. As a result, Malaysia is expected to become an increasingly important source of palm oil for global consumers.
MPOC noted that Malaysia's palm oil production rose marginally by 1.4% month-on-month to 1.81 million tonnes in August 2026, supported by higher fresh fruit bunch collection and an improvement in the oil extraction rate from July.