EXPORT – OPIEJ https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Wed, 24 Sep 2025 04:51:10 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 UNITED STATES TARIFF SHOCKWAVES: MALAYSIA’S PALM OIL IN THE CROSSHAIRS https://opiej.mpob.gov.my/united-states-tariff-shockwaves-malaysias-palm-oil-in-the-crosshairs/ Tue, 23 Sep 2025 07:50:30 +0000 https://opiej.mpob.gov.my/?p=2489 Read more]]> This article presents an analysis on the implications of the 2025 United States (U.S.) tariffs policy introduced under President Donald Trump administration on Malaysian palm oil industry (when this article was written). It examines the multifaceted impact of the early slapped of 24% tariff by the U.S. before it was escalated to 25%, then reduced to 19% on August 2025 (after went through delicate trade negotiations and bargaining) necessitates discussion on the Malaysian exports through economic, political, and strategic lenses. The analysis reflects on the broader context of global trade tensions and protectionist trends, while also evaluating Malaysia’s policy responses and adaptive strategies. Drawing on current developments and historical parallels, the article offers a forward-looking perspective on the long-term viability and resilience of Malaysia’s palm oil industry in an increasingly uncertain trade environment.

]]> The Impact of Negative Perceptions towards Palm Oil in the European Union on the Competitiveness of Malaysian Palm Oil Exports https://opiej.mpob.gov.my/the-impact-of-negative-perceptions-towards-palm-oil-in-the-european-union-on-the-competitiveness-of-malaysian-palm-oil-exports/ Wed, 31 Mar 2021 08:16:02 +0000 https://opiej.mpob.gov.my/?p=1555 Read more]]> The anti-palm oil campaigns by a number of European countries have been of great concern to the Malaysian palm oil industry. Such campaigns will possibly bring about a negative image of palm oil, and thus potentially affect the marketability of palm oil products in these markets. This study aimed to assess the impact of the negative perceptions towards palm oil based on environmental and health grounds on the export competitiveness of Malaysian palm oil vis-á-vis Indonesian in selected European countries as a result of the anti-palm oil campaigns. The study employed comparative trend analysis in analysing the relationships between negative perceptions and export competitiveness. The study indicated that the negative perceptions of palm oil are affecting the competitiveness of Indonesian palm oil exports more than Malaysian. Malaysian palm oil exports are more affected when the anti-palm oil campaigns are intensified.

]]> The Effect of Exchange Rate on Palm Oil Exports between Malaysia and its Trading Partners https://opiej.mpob.gov.my/the-effect-of-exchange-rate-on-palm-oil-exports-between-malaysia-and-its-trading-partners/ Wed, 30 Sep 2020 06:47:07 +0000 https://opiej.mpob.gov.my/?p=1395 Read more]]> Despite the vast research on the exchange rate and trade, little is known
about the perspective of Malaysia, especially on export of agricultural
commodities. In the current situation, Malaysia is experiencing a
depreciation of the ringgit over a short-term period. Therefore, the demand
for trade is likely to change correspondingly. Theoretically, several major
factors affect the movement of export volumes; one of them is a country’s
exchange rate. Hence, the objective of this study is to investigate the effect
of exchange rate on the export of palm oil from Malaysia to its major
trading partners. The gravity model was estimated using a panel data set
for the bilateral export of palm oil, where empirical findings revealed a
negative and significant effect of the exchange rate on the export of palm
oil. It means that any depreciation in the Malaysian Ringgit will lead to
lower exports of this commodity.

Keywords: palm oil, export, exchange rate, gravity model.

]]> The Elasticity of Foreign Demand for Malaysian Palm Oil https://opiej.mpob.gov.my/the-elasticity-of-foreign-demand-for-malaysian-palm-oil/ Tue, 28 Aug 2018 05:05:23 +0000 https://opiej.mpob.gov.my/?p=206 Read more]]> The price elasticity of export demand is expected to receive considerable attention due to the current economic climate of volatile export markets and prices. The export demand elasticity is used to predict the change in demand for an export for a unit change in its price and to model the behaviour of foreign buyers. This project estimated the elasticity of foreign demand for Malaysian palm oil for the major importing countries – China P R, India, Pakistan, Egypt and South Korea. The error correction mechanism (ECM) method was used for the estimation considering its usefulness in quantifying the short-run and long-run effects of explanatory variables on the dependent variables using timeseries data. It was found that the price of palm oil plays a very significant role in its export; thus, the price needs to be stable and competitive with those of its substitutes, especially soyabean oil. From panel data research, the effect of a unit change in the soyabean oil price is greater on the exports of crude palm oil than the effect of the same change in the palm oil price. This means that both oils are highly substitutable.

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