Econometric study on Malaysia׳s palm oil position in the world market to 2035

Domestic palm oil production is projected to rise by about 50% to 26.6 million tons in 2035. Domestic demand of palm oil for food consumption, industrial non-food uses and biodiesel is anticipated to increase by more than 200% to 1.4 million tons in 2035, up from 0.4 million tons in 2009. Domestic demand, however, amounts to only a very small portion (5%) of total palm oil production in 2035, with an expected exportable surplus of over 25 million tons. With such surplus capacity, Malaysia will become a formidable competitor in the world vegetable oil and biofuel markets.