A study on the development and exports outlook of palm biodiesel in Malaysia

This study provides a comprehensive analysis on the use of palm biodiesel in Malaysia and its exports outlook in the world market. The Malaysian government planned to introduce processed palm oil blends with diesel for domestic use under a mandatory ruling with methyl ester, derived from palm oil, for exports. The domestic market is far from ready as proper policy framework and engine warranty are yet in place. As with the export market, palm oil is potentially competitive to supply to the growing biofuel markets with respect to its price, productivity, and production volume. Nevertheless, international trade in biodiesel is minimal, as yet, and heavily restricted by trade barriers, agriculture policies, subsidies, incentives, etc.