Oil Palm Industry Economic Journal Vol. 12 (2) September 2012 p. 14-21

Supply and Demand Performance for the Oils and Fats Industry in Malaysia

Ahmad Borhan A Nordin*; Faizah Mohd Shariff; N Balu and Nik Abdullah Nik Idris
Received:    Accepted:    Available Online:


Malaysia was the world’s second largest palm oil producer, but it was the leading exporter of the oil in 2011. The country had exported nearly 18 million tonnes of palm oil, 3.4 million tonnes of palm kernel oil, 2.2 million tonnes of oleochemicals, 0.4 million tonnes of finished products and nearly 0.3 million tonnes of other palm-based products. Meanwhile, the imports of edible oils and fats, including palm oil had nearly doubled from 1.1 million tonnes in 2005 to 2.1 million tonnes in 2011. Imports of palm oil had grown from 26% in 2005 to 61% in 2011, while imports of palm kernel oil had tripled over the same period. Imports of soyabean, canola/rapeseed and sunflower oils had increased, with their total combined volume increasing to 0.26 million tonnes in 2011 from 0.16 million tonnes in 2005. Only the import of coconut oil had declined from 0.24 million tonnes in 2005 to 0.16 million tonnes in 2011. This scenario indicated that palm oil still played a major role in the demand performance of edible oils and fats in Malaysia. However, arising from higher disposable income and traditional taste preference for premium soft oils, the demand for soyabean, canola/rapeseed and sunflower oils have seen increases in their consumption patterns in recent years.

About Post Author

* Malaysian Palm Oil Board,
P. O. Box 10620,
50720 Kuala Lumpur, Malaysia.
Email: balu@mpob.gov.my