Malaysia: Biofuels Annual

The Covid 19 pandemic not only affected biodiesel consumption, but also delayed the implementation of B20 mandate in Malaysia. Biodiesel production in 2021 is expected to drop by 16 percent to 1.05 billion liters, as exports are negatively impacted by the price of CPO at an all time high throughout 2021. The Government of Malaysia (GoM) has revised its B20 implementation date, originally planned for the first quarter of 2020, to mid-2021 and now to mid-2022. This date may slip further, given political uncertainties, high CPO price, and the budget deficit faced by GoM. Exports of biodiesel in 2021 are projected at 315 million liters, a decrease of 23.5 percent compared to the previous year’s 412 million liters. With no domestic feedstock industry to support it, Malaysia has no fuel ethanol program, despite associated human health and climate benefits.