Malaysia: Biofuels Annual

Biodiesel production is expected to remain flat in Malaysia at 1.58 billion liters, as the country is likely to remain at a B10 blend rate as B20 and B30 mandate goals have not advanced. Recent proposals for the country’s 2025 budget limiting fuel subsidies are projected to decrease consumption slightly in the short term, while a change in the palm oil export tax structure may incentivize more downstream production, such as in biofuels. The country looks towards the further harnessing of local palm products for biofuels with the final investment of a Sustainable Aviation Fuel refinery in the state of Johor and operational plans by 2028. Noting the ample feedstock of palm, there is not a market in Malaysia for fuel ethanol at this time.