Malaysia boosts biofuel production efforts, says DPM
20/04/2026 (The Star), Petaling Jaya - Malaysia is ramping up efforts to expand biofuel production, with 19 biodiesel plants now capable of producing about 1.5 million litres a month, as part of a broader push to ease diesel costs, says Datuk Seri Dr Ahmad Zahid Hamidi.
The Deputy Prime Minister said the initiative, presented at the National Economic Action Council (MTEN), involves close collaboration between government agencies and private plantation companies.
“We have submitted the proposal to MTEN together with the Plantation and Commodities Ministry, Felcra, Felda and several private sector players to scale up biofuel production,” he told reporters after opening a supermarket here yesterday.
Ahmad Zahid said the 19 plants are currently producing biodiesel blends ranging from B15 to B50, with plans to further boost output by utilising sludge, a by-product of crude palm oil processing.
“About 35% of this sludge can be fully utilised to produce biofuel as well as Jet A1. This initiative has already begun and MTEN has, in principle, accepted the proposal,” he said.
Ahmad Zahid added that the government will coordinate efforts among agencies and industry players to keep production costs low through better integration across the plants.
“At present, biodiesel production stands at about 1.5 million litres per month. With mass production, we expect costs to decline and prices to become more competitive,” he said.
He stressed that biodiesel’s viability has already been proven through various tests, including pilot projects conducted with PETRONAS and vehicle manufacturers.
“There is no doubt about the capability of this biofuel. It has been tested to ensure its suitability for vehicles, and in the long term, it will help stabilise and reduce diesel prices,” he said.
Separately, Ahmad Zahid, who is also Rural and Regional Development Minister, said efforts to support commodity prices remain ongoing, particularly in the rubber sector.
He noted that, in addition to the subsidy increase from RM2 to RM2.50 announced by Prime Minister Datuk Seri Anwar Ibrahim, measures by the Rubber Industry Smallholders Development Authority, including acting as a key buyer, have helped improve prices.