Malaysia’s 2024 average crude palm oil price surged by 9.7% year-on-year
Record High CPO Prices and Export Revenues
In his address at the Palm Oil Economic Review and Outlook Seminar 2025, delivered by Deputy Minister Datuk Chan Foong Hin, Johari highlighted that the monthly average CPO price peaked at RM5,119.50 per tonne in December 2024, with the daily average price reaching a record RM5,333.50 per tonne on December 6, 2024.
This surge contributed to a 15.1% increase in total export revenue, which climbed to RM109.3 billion in 2024 compared to RM94.9 billion in 2023. Total exports of palm oil and palm-based products also rose by 8.9%, reaching 26.66 million tonnes, up from 24.49 million tonnes in the previous year.
Major Export Markets
The top six export markets for Malaysian palm oil products in 2024 were India, China, the European Union, Kenya, Türkiye, and the Philippines, which collectively accounted for 50.7% of total exports. India remained the largest single importer, reflecting strong demand for Malaysian palm oil products globally.
Increased Production and a Positive Outlook
Malaysia’s crude palm oil production grew by 4.2% to 19.3 million tonnes in 2024, up from 18.55 million tonnes in 2023. Johari emphasized that the industry’s outlook remains positive, supported by stable supply and demand dynamics and an anticipated recovery from labour shortages.
Addressing Labour Challenges Through Mechanisation
At a press conference, Deputy Minister Chan Foong Hin outlined the Ministry’s focus on mechanisation and automation as long-term solutions to labour constraints. The government has provided incentives in Budget 2025 to encourage the adoption of advanced technologies, reducing reliance on foreign labour.
Chan also noted that while an exception was granted in 2023 for 60,000 foreign workers, any future exceptions will depend on industry feedback and urgency. “Over the long term, the industry needs to transition away from foreign labour dependency,” he said.
Advancing Sustainability with NISCOPS 2
The Malaysian Palm Oil Board (MPOB), in partnership with the Netherlands embassy and the British High Commission in Malaysia, has launched the National Initiative for Sustainable and Climate-smart Oil Palm Smallholders 2 (NISCOPS 2). This government-to-government initiative aims to improve smallholders’ livelihoods while addressing climate change through sustainable practices, forest protection, and carbon emission reduction.
A Bright Future for Malaysian Palm Oil
The combination of strong global demand, increased production, and ongoing efforts to modernize and make the industry more sustainable signals a promising future for Malaysian palm oil. With the government’s focus on mechanisation and sustainability initiatives like NISCOPS 2, the industry is well-positioned to maintain its status as a global leader in palm oil production.
