Palm Oil Exports from Malaysia Decline While Indonesia Shows Growth

According to the shipping inspection agency SGS, palm oil exports from Malaysia are expected to reach 944,000 tons in January 2026. This is a 5.58% decrease compared to December of last year when exports exceeded 1 million tons.

This is reported by AgroReview

Factors Behind the Decline in Exports from Malaysia

The decrease in Malaysian palm oil exports is attributed to weakening demand in global markets. This situation could lead to an oversupply in the domestic market, which in turn may lower spot prices for the product.

“The agency notes that this indicates a weakening of international demand and could lead to a relative oversupply in the domestic market, reducing pressure on spot prices for palm oil.”

Exports from Indonesia Reach Record Levels

While Malaysia is experiencing a decline in exports, Indonesia is showing positive dynamics. According to data from the Central Statistics Bureau of Indonesia, palm oil exports from the country rose to $24.42 billion in 2025, an increase of 21.83% compared to the previous year. The total export volume reached 23.61 million tons, showing a growth of 9.09%.

Experts explain that this growth was made possible by the expansion of production and a simultaneous increase in demand for palm oil, although a growing surplus is observed in the market.

It is worth noting that in December, palm oil stocks in Malaysia increased by 7.58% to reach 3.05 million tons. This is the highest level in the past seven years, further emphasizing the trend of accumulating product surpluses.