US Tariff Relief Positive Step for Malaysia's Palm Oil Industry: MPOC

The Malaysian Palm Oil Council has welcomed the US tariff exemptions for selected Malaysian products, under the newly concluded Agreement on Reciprocal Trade. NSTP/DANIAL SAAD

The Malaysian Palm Oil Council (MPOC) has welcomed the United States' (US) tariff exemptions for selected Malaysian products, including palm oil, under the newly concluded Agreement on Reciprocal Trade.

Chief executive officer Belvinder Sron said the zero-tariff for Malaysian palm oil is a positive development.

"Our exports to the United States have recorded strong growth over the past two years, and this measure will further strengthen Malaysia's competitive position in a high-value and rapidly evolving market.

"The deeper commercial cooperation with the US will benefit both industry players and the Malaysian economy, particularly through downstream expansion and technology integration," she said in a statement today.

The council said the decision comes at a time of strong bilateral trade performance.

Over the past two years, Malaysia's palm oil exports to the US have shown consistent growth, supported by rising demand from advanced manufacturing and consumer goods sectors.

MPOC noted that from January to September 2025, Malaysian palm oil and products exports increased by 8.1 per cent to 346,000 tonnes, compared to 320,000 tonnes during the same period in 2024.

"The growth was primarily driven by certified palm oil, with shipments increasing from 75,000 to 98,000 tonnes.

"Certified palm oil and palm stearin currently account for 79 per cent of Malaysia's palm oil product exports to the US and are used in high-value industries, from specialty food ingredients to personal care products, where substitute options are limited," it said.

This reflects the expanding role of Malaysian palm oil in US supply chains.

With improved tariff conditions in the US, continued expansion of downstream capabilities, and an assertive market diversification agenda, MPOC is confident in sustaining palm oil export growth and reinforcing Malaysia's role as a reliable partner in bilateral trade with the US.

It added that while the US trade outcome is highly encouraging, MPOC emphasised that Malaysia will continue broadening its market portfolio to support long-term trade resilience.

Sub-Saharan Africa, the Middle East and North Africa (MENA), and ASEAN remain key focus regions, backed by growing demand for edible oils and downstream palm-based products.

Source: www.nst.com.my