The board is also anticipating Malaysia’s palm oil production to soften this year, projecting output of 19.5 million to 19.8 million tonnes, down from a record 20.3 million tonnes last year, as estates enter a biological tree-rest phase following last year’s yield rebound. On the other hand, MBSB Research is forecasting marginal production growth of 1%, reflecting natural yield limitations after two years of recovery. It said palm oil exports fell 9.7% year-on-year (y-o-y) last year to 15.3 million tonnes, largely due to a narrower discount against competing vegetable oils and weaker imports from major buyers. This contributed to ending stocks surging to 3.05 million tonnes, the highest level since February 2019. Given the outlook, MBSB Research has kept a “neutral” stance on the plantation sector, citing limited upside from current price levels and a disconnect between plantation share prices and CPO fundamentals.

Source: The Star January 16, 2026 08:05 UTC