New Straits Times (30/12/2025) - KUALA LUMPUR: Malaysia's palm oil industry is eyeing fresh growth in the United States after selected palm products secured zero-tariff access under the Malaysia-US agreement on reciprocal trade (ART).

Malaysian Palm Oil Board (MPOB) director general Datuk Dr Ahmad Parveez Ghulam Kadir said palm oil exports to the US remained strong in 2025, with shipments rising marginally to 173,005 tonnes from January to November.

Export value climbed 9.4 per cent to RM857.32 million, supported largely by downstream products such as oleochemicals and specialty fats, which benefit from stronger pricing power and buyer loyalty.

"Malaysia can remain competitive by focusing on value-added products while ensuring quality, continuity and choice for US buyers," he told Business Times.

Ahmad Parveez said the tariff-free access under ART has further strengthened Malaysia's competitiveness in the US market, particularly for downstream and specialised applications.

On sustainability, he said Malaysia is well positioned to meet increasingly stringent global regulations, including the European Union Deforestation Regulation (EUDR).

"Our strengthened Malaysian Sustainable Palm Oil (MSPO) 2.0 certification scheme and the National Traceability System ensure transparency and compliance with international standards," he said.

These initiatives integrate plantation mapping, licensing and certification data, reinforcing Malaysia's credibility and competitiveness in international markets.

Economist and plantation expert Dr Mohd Zulkufli Zakaria described the US zero-tariff access as a potential "game-changer" for Malaysia.

He said the agreement could lift biofuel-related demand and add one to two million tonnes of palm oil exports to the US.

However, he cautioned that stricter EU deforestation rules could disproportionately affect smallholders, potentially reshaping Malaysia's export mix.

"Malaysia may need to divert more CPO to markets such as India, China, the Middle East and Africa, while exports to the EU could fall significantly, possibly by up to 30 per cent," he said.

While Indonesia is likely to remain the world's largest exporter, Mohd Zulkufli said Malaysia could leverage its sustainability credentials to secure premium market niches, particularly in downstream and certified segments.

He also warned that US zero-tariff access is not guaranteed over the longer term, with outcomes dependent on factors such as inflation trends, global oilseed supply and rising operational costs linked to sustainability compliance.

To remain competitive, he said Malaysia must continue investing in smallholder support and accelerating digitalisation for traceability, even if this raises compliance costs for exports to the EU and the United Kingdom.

Read more at https://www.nst.com.my/business/economy/2025/12/1346844/malaysian-palm-oil-eyes-us-growth-zero-tariffs