Energy News Today

Malaysian palm oil sector on overseas export growth prospects

When we spoke with the Malaysian Palm Oil Council (MPOC) last year, CEO Datuk Dr Wan Zawawi Wan Ismail had already shared the council’s plans to move beyond China and India​ – Malaysia’s current top export destinations for palm oil – in order to diversify the country’s export markets.

“The current palm oil market has only two major palm oil exporters with Indonesia taking about 70% and us taking about 26% to 27%, and it has been this way for some time now. [If] we don’t diversify our export markets and find new markets to break into, this will remain forever stagnant and Malaysia will never move beyond this 27%,”​ he told FoodNavigaotr-Asia​.

“So we need to diversify to break away from traditional markets and this stagnation, and although India and China remain very important markets to us and will continue to be a focus, we are also focusing energies on other parts of the world.”

According to MPOC Director for Marketing and Market Development Faisal Iqbal, some of the key opportunities that the council has identified lies in emerging and developing markets, with the closest to home being other South East Asian countries such as Vietnam and the Philippines.

“Some key sectors of growth we have identified in this region are the foodservice sectors in Vietnam and the Philippines, as well as the consumer cooking oil market in the Philippines,”​ he said.

“The food service sector in the Philippines is estimated to see a CAGR of 4.67% over the next five years to hit US$9.3bn in value, and Vietnam is projected to grow by 8.65% to hit US$37.28bn. The edible oils market in the Philippines is predicted to grow 4.74% to hit US$2.36bn – [all] very optimistic numbers with good potential for palm oil entry.”

Read More: Malaysian palm oil sector on overseas export growth prospects

2022-02-28 20:17:08

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