Malaysia's Palm Oil Industry Braces for Potential Decline in 2027 Amid El Nino Threat

Malaysia's palm oil production is expected to decline in 2027 if a severe El Nino strikes between October and December, according to Universiti Putra Malaysia senior lecturer Dr Muhammad Firdaus Sulaiman.

The prolonged dry conditions caused by El Nino can reduce fresh fruit bunch yields, with some effects becoming apparent within four to 12 months. More significant impacts could emerge about two years later if flowering and sex differentiation are affected.

Firdaus warned that the magnitude of the impact will depend on several factors, including the strength of the El Nino, the duration of dry conditions, temperature levels, soil type, and whether water stress occurs during sensitive crop growth stages.