MPOC: US tariff exemption boosts Malaysia’s palm oil exports’ competitiveness
28/10/2025 (The Edge Malaysia), Kuala Lumpur - The US tariff exemptions for selected products, including palm oil, under the recently concluded Agreement on Reciprocal Trade, will immediately enhance Malaysia’s competitiveness.
Commenting on the development, Belvinder Sron, chief executive officer of Malaysia Palm Oil Council (MPOC), said in a statement: “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 tariff decision arrived against a backdrop of measurable export growth to the US, with Malaysia’s palm oil and products shipment up 8.1% for the January to September 2025 period, compared with the same span in 2024.
Total recorded exports for that period reached 346,000 metric tonnes, up from 320,000 metric tonnes a year earlier, and the certified palm oil volumes also showed a strong increase over the same time period, it noted.
MPOC noted the composition of Malaysian shipments to the US is going more towards certified and downstream-ready products, with certified palm oil and palm stearin taking up the majority of exports.
“Certified palm oil and palm stearin currently account for 79% of Malaysia’s exports to the US, and are used in high-value industries, from specialty food ingredients to personal care products, where substitute options are limited. This reflects the expanding role of Malaysian palm oil in US supply chains.”
That profile is significant because it means that Malaysian products are increasingly suited to higher-value applications where substitutes are limited, including specialty food ingredients, personal care formulations, and advanced manufacturing inputs, it added.
MPOC links the improved market access to domestic sustainability and traceability upgrades.
The introduction of the Malaysian Sustainable Palm Oil (MSPO 2.0) and the Sawit Intelligent Management System (SIMS) are presented as foundational changes that enable buyers to meet procurement requirements and integrate Malaysian supplies into regulated supply chains.
These systems are described in the release as supporting greater transparency and smoother compliance with international buyer standards.
For palm oil distributors and exporters, the tariff exemption reduces an immediate cost barrier to US entry, and strengthens the commercial case for further downstream investment in refining and product development.
MPOC frames the development as an opportunity to expand value-added production, attract technology integration, and deepen bilateral commercial ties, while continuing a diversification strategy across other regions.
Malaysia’s palm oil sector is sizable and remains a major export earner, contributing RM109 billion in export earnings in 2024.
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 (SSA), 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.
“Our diversification strategy remains a core priority to ensure sustained success for Malaysian palm oil globally,” Sron said.