KUALA LUMPUR (Jan 13): Malaysia’s crude palm oil (CPO) production is expected to dip below the 20 million-tonne mark in 2026 after hitting a record high last year, as output normalises following a tree-resting cycle, according to the Malaysian Palm Oil Board (MPOB). CPO production could range between 19.5 million and 19.8 million tonnes, MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir told the Palm Oil Economic Review and Outlook Seminar 2026 on Tuesday. Output reached a historic high of 20.28 million tonnes in 2025. “The moderation reflects a natural production normalisation, with a tree-resting cycle following strong yields in late 2025 expected to weigh on output, particularly in early 2026," Ahmad Parveez explained. The lower export figures in 2025 were attributed to stiff competition from Indonesia and narrow price gaps between palm oil and other vegetable oils, which dampened Malaysia's price competitiveness.

Source: The Edge Markets January 13, 2026 08:18 UTC