KUALA LUMPUR — Malaysia intends to keep growing its palm oil exports to the Philippines even as its Southeast Asian neighbor works to expand domestic production, according to the Malaysian Palm Oil Council (MPOC).

"Exports to the Philippines are increasing… We probably exported more than 700,000 tons. We are definitely looking at sustaining that market," MPOC Chief Executive Officer Belvinder Sron told reporters on the sidelines of the 2026 Malaysian Palm Oil Forum.

"I don't have the projections as yet, but the markets in ASEAN are doing very well so, I'm expecting exports to the Philippines to increase," she added.

Malaysia is the world's second-largest palm oil producer, earning about 112.43 billion ringgit in export revenue in 2025, an increase of 2.8%. The Philippines ranks among the leading destinations for Malaysian palm oil and relies on imports for nearly 90% of its requirements. In the first seven months of the year, Malaysia shipped 421,863 tons of palm oil to the Philippine market, according to the Malaysia Palm Oil Board (MPOB). That reliance gives the trade relationship near-term weight: while Manila builds out local capacity on a multi-year timeline, Malaysian supply remains what meets the country's day-to-day needs.

"Malaysia is ready to be a supplier to any country, especially to the Philippines," Ms. Sron said. "It's been a very good buyer."

To broaden its foothold, Malaysia is promoting higher-value palm-derived products in the Philippines, including oleochemicals, shortening, and palm tocotrienols, among others.

"It's a market that's very attractive because a lot of palm is being used in the HORECA (hospitality, restaurant, catering) sector, in the consumer segment, so there's a lot of potential there," she said. "We still haven't tapped into the oleochemical sector, which we feel that we should be focusing on."

PHL Moves to Lift Domestic Output

While Malaysia remains confident about the Philippine market, the Philippine Department of Agriculture has been seeking budgetary support to strengthen the local palm oil industry and reduce reliance on imports. The agency requested at least P300 million for palm oil industry development next year, with potential funding of up to P1 billion over five years. Its plans call for developing about 100,000 hectares of palm oil plantations by 2028, eventually expanding the area to 300,000 hectares. How much of that funding is approved, and how quickly hectarage expands, will shape how long the Philippines remains one of Malaysia's growth markets.

"Even India is doing that, and there's a lot of interest coming from Africa," Ms. Sron said. "Everyone wants to plant oil palm. Oil palm is a very high yielding crop so everyone sees that as an opportunity."

Malaysia, for its part, said it is willing to extend technical assistance to any country exploring opportunities in the palm oil sector.

"We are ready to provide technical help if anyone needs it, because Malaysia has had over 100 years of experience in planting oil palm from the first commercial planting we did in 1917," Ms. Sron said. "We have the biggest R&D institute in this country. So technical assistance is readily available from Malaysia for any country that needs it."

Sustaining Export Growth

Malaysia remains optimistic about expanding its export market as Indonesia implements an aggressive biodiesel mandate that could limit its capacity to serve international demand.

"Indonesia has implemented a B50 biodiesel mandate, so a lot of palm is being used domestically in the Indonesian market," Ms. Sron said. "There's going to be less supply out there, so the country that will be able to provide sufficient supply for export markets will be Malaysia. I guess we are in a position where we still have a lot of quantity or a lot of supply available for our markets there."

Indonesia is the world's largest palm oil producer. Its recently launched 50% palm-oil-based fuel blend raises domestic crude palm oil consumption to between 16.3 and 17 million metric tons. The MPOC said the shift opens an opportunity for Malaysia to expand globally.

"Stocks should not be too much of a worry because Indonesian supply will not be there," Ms. Sron said. "Prices may come down a little bit, but I think it's still at a good level and we still will be able to support our export markets."

Palm oil export growth climbed 8% year on year over the past eight months. Malaysia is targeting exports of more than 16 million tons by the end of the year, up from 15.2 million tons in the previous year — an export volume on roughly the same scale as the crude palm oil Indonesia's B50 mandate absorbs domestically. The year-end export figure will be the clearest gauge of whether that momentum holds.