KUALA LUMPUR, 28 October 2025 — The Malaysian Palm Oil Council (MPOC) has welcomed the United States’ decision to exempt selected Malaysian products, including palm oil, from import tariffs under the newly concluded Agreement on Reciprocal Trade.
The move marks a positive step in strengthening bilateral trade between Malaysia and the United States, particularly amid robust growth in palm oil exports over the past two years. The tariff exemption is expected to enhance Malaysia’s competitiveness in one of the world’s most sophisticated and high-value markets.
“The zero-tariff for Malaysian palm oil is a positive development,” said Belvinder Sron, Chief Executive Officer of MPOC. “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 rapidly evolving market.”
Sron added that deeper commercial cooperation with the US will benefit both industry players and the Malaysian economy, particularly through downstream expansion and the adoption of advanced technology.
From January to September 2025, Malaysia’s exports of palm oil and related products rose 8.1% to 346,000 metric tonnes, compared to 320,000 metric tonnes during the same period in 2024. Growth was primarily driven by certified palm oil, which increased from 75,000 to 98,000 metric tonnes.
Certified palm oil and palm stearin currently account for 79% of Malaysia’s exports to the US, serving high-value industries such as specialty food ingredients and personal care products, sectors where substitute options are limited. This underscores the growing role of Malaysian palm oil in US manufacturing and consumer supply chains.
Malaysia’s sustainability and traceability efforts continue to underpin its global market expansion. The Malaysian Sustainable Palm Oil (MSPO 2.0) certification and Sawit Intelligent Management System (SIMS) are key initiatives that strengthen transparency, compliance, and traceability across the supply chain, meeting the stringent standards of international buyers and facilitating Malaysia’s entry into premium market segments.
While the US trade outcome is highly encouraging, MPOC reaffirmed that market diversification remains central to ensuring long-term commercial resilience. Emerging demand across Sub-Saharan Africa (SSA), the Middle East and North Africa (MENA), and ASEAN regions will continue to drive growth in both edible oil consumption and downstream palm-based industries.
“Our diversification strategy remains a core priority to ensure sustained success for Malaysian palm oil globally,” Sron said.
With improved tariff conditions in the US, expanded downstream capabilities, and a proactive market diversification agenda, Malaysia is well-positioned to sustain palm oil export growth and reinforce its role as a reliable trade partner in the global economy.
