Malaysian Palm Oil Exports Performance to Asia Pacific Region
( January – May 2023)
A Review on MPO Performance
| No | COUNTRY | Jan-May 2023 | Jan-May 2022 | Diff (MT) | Diff (%) |
|---|---|---|---|---|---|
| 1 | China | 509,834 | 469,347 | 40,487 | 8.63 |
| 2 | South Korea | 211,192 | 167,700 | 43,492 | 25.93 |
| 3 | Japan | 206,626 | 200,196 | 6,430 | 3.21 |
| 4 | Philippines | 168,285 | 288,036 | (119,751) | (41.58) |
| 5 | Vietnam | 141,737 | 163,313 | (21,577) | (13.21) |
| 6 | Singapore | 100,670 | 73,789 | 26,881 | 36.43 |
| 7 | Taiwan | 96,083 | 83,367 | 12,717 | 15.25 |
| 8 | Australia | 55,621 | 50,702 | 4,919 | 9.70 |
| 9 | Myanmar | 21,545 | 24,606 | (3,061) | (12.44) |
| 10 | New Zealand | 8,806 | 9,066 | (260) | (2.87) |
| 11 | Brunei | 3,755 | 2,803 | 951 | 33.93 |
| 12 | Hong Kong | 1,078 | 1,430 | (352) | (24.62) |
| 13 | Indonesia | 1,069 | 813 | 256 | 31.55 |
| 14 | Fiji | 810 | 1,134 | (324) | (28.53) |
| 15 | Papua N. Guinea | 447 | 12,936 | (12,489) | (96.55) |
| 16 | Cambodia | 420 | 502 | (82) | (16.34) |
| 17 | Mongolia | 291 | 469 | (178) | (37.86) |
| 18 | Vanuatu | 136 | 20 | 117 | 587.36 |
| 19 | Solomon Island | 96 | 20 | 76 | 375.43 |
| 20 | Micronesia Federation | 80 | 37 | 43 | 115.67 |
| 21 | Tonga | 77 | 73 | 3 | 4.26 |
| 22 | Timor-Leste | 75 | 203 | (127) | (62.83) |
| 23 | Marshall Island | 42 | 0 | 42 | – |
| 24 | Northern Mariana Islands | 21 | 0 | 21 | – |
| 25 | Nauru | 18 | 0 | 18 | – |
| 26 | New Caledonia | 16 | 32 | (16) | (50.00) |
| 27 | Kiribati | 0 | 77 | (77) | (100.00) |
| 28 | Laos | 0 | 21 | (21) | (100.00) |
| 29 | Samoa | 0 | 39 | (39) | (100.00) |
| 30 | Palau | 0 | 20 | (20) | (100.00) |
| Grand Total | 1,528,831 | 1,550,751 | (21,921) | (1.41) |
Source: MPOB
From January to May 2023, Malaysian palm oil export to Asia Pacific region decreased by 21,921 MT or by 1.41% to 1.53 million MT compared to the same period in 2022. This was primarily due to the decrease of Malaysian palm oil export to the Philippines and Vietnam, which declined by 119,751 MT (41.58%) and 21,577 MT (13.21%) respectively. However, the import by China recovered and China remained as the biggest importer of Malaysian palm oil in the region with 509,834 MT during this period. This is an increase of 40,487 MT from the previous year contributed by rebound in domestic consumption as consumer goods prices dropped from their peak in June 2022 and the resumption of economic activities following the ending of zero-COVID policy in December 2022.
Imports of Malaysian palm oil by Singapore increased by 36.43% to 100,670 MT compared to the same period in 2022. The increase of Malaysian palm oil import in Singapore is due to the increased utilization of palm-based feedstock for biodiesel production. According to Oil World, Singapore is expected to utilize 620,000 MT of palm oil as feedstock for biodiesel production, a significant increase compared to the 460,000 MT utilized in 2022, representing a growth of 43.47%. Therefore, the 36.43% surge in palm oil imports from Malaysia to Singapore aligns with the growth of palm-based biodiesel as projected by Oil World.
The Malaysian palm oil export to the Philippines recorded a steep decrease of 119,751 MT or by 41.58% to 168,285 MT for the period of January to May 2023. Likewise, Indonesia palm oil export to Philippines dropped 38.89% from 180,000 MT to 110,000 MT between January and April 2023. The decline in palm oil imports from both Indonesia and Malaysia in the Philippines can be attributed to high palm oil stock carried over from 2022. According to Oil World, Philippines’ palm oil ending stock in year 2022 was 215,000 MT, representing a 30.3% increase compared to 165,000 MT in year 2021. Palm oil consumption in 2023 is expected to remain stable compared to 2022. Therefore, it is anticipated that palm oil imports in the Philippines will see a resurgence in the second half of 2023.
The imports of Malaysian palm oil by Vietnam decreased by 13.21% to 141,737 MT compared to the same period in 2022. The decrease of Malaysian palm oil import in Vietnam is due to increased import of palm oil from Indonesia. Between January and April 2023, Vietnam witnessed a rise of 41,000 MT or 26.97% in palm oil imports from Indonesia compared to the previous year, leading to a reduced dependence on palm oil imports from Malaysia. In year 2022, palm oil accounted 94% of Vietnam’s total vegetable oil imports, primarily due to its affordability in the food service and food processing sectors. Furthermore, the revival of Vietnam tourism industry in 2023 is expected to further stimulate the consumption of palm oil.
As for other countries in the Asia Pacific region like Japan, South Korea, and Taiwan, the import of palm oil from Malaysia has remained steady, with Malaysia’s palm oil imports continuing to dominate more than 50% of the total palm oil imports in these countries.
Indonesia significantly reduced its crude palm oil export tax and levy from USD 168 in May 2023 to USD 68 for the period of 15 – 30 June, 2023. This adjustment has made Indonesian crude palm oil exports more competitive, as the export tax and levy is close to Malaysia’s export tax of USD 72. With an abundant supply and competitive pricing of palm oil in Indonesia, it is expected that Malaysia may experience a loss in its palm oil export market share to Indonesia in the month of June, 2023.
Breakdown of MPO Exports to the Asia Pacific Region (MT) January to May 2023
| Malaysian Palm Products Export to Asia Pacific Region (By Product) | ||||
|---|---|---|---|---|
| PRODUCT | Jan-May 2023 | Jan-May 2022 | Diff (MT) | Diff (%) |
| RBD Palm Olein* | 703,634 | 790,997 | (87,363) | (11.04) |
| RBD Palm Stearin* | 275,204 | 277,826 | (2,622) | (0.94) |
| RBD Palm Oil* | 174,446 | 200,173 | (25,727) | (12.85) |
| Cooking Oil / DPL | 60,653 | 72,016 | (11,363) | (15.78) |
| PFAD | 78,817 | 43,105 | 35,712 | 82.85 |
| PAO | 61,431 | 36,064 | 25,367 | 70.34 |
| Others | 174,646 | 130,570 | 44,076 | 33.76 |
| Total | 1,528,831 | 1,550,751 | (21,921) | (1.41) |
| *Including ISCC, RSPO Mass Balance and RSPO from Segregated Categories | ||||
*Including ISCC, RSPO Mass Balance and RSPO from Segregated Categories
Source: MPOB
For more info please contact Mrs Rina Mariati
Email : rina@mpoc.org.my
*Disclaimer: This document has been prepared based on information from sources believed to be reliable but we do not make any representations as to its accuracy. This document is for information only and opinion expressed may be subject to change without notice and we will not accept any responsibility and shall not be held responsible for any loss or damage arising from or in respect of any use or misuse or reliance on the contents. We reserve our right to delete or edit any information on this site at any time at our absolute discretion without giving any prior notice.
