Palm nuts and kernels market in Malaysia

Earlier Report Observations

From 2018 to 2023, the Malaysian palm nuts and kernels market showed variable production and consumption volumes, starting at 98 495 thousand tons in 2018 and reaching 94 992 thousand tons in 2023. The market's initial stability was followed by a decline in 2020 and 2021, coinciding with the industry-wide implementation of the Malaysian Sustainable Palm Oil (MSPO) certification scheme and tighter environmental compliance for mills, which temporarily affected operational output. The subsequent recovery in 2022 to 94 852 thousand tons was supported by an expansion of mature plantation areas and active government promotion of palm oil exports to diverse international markets.

Regulatory developments significantly shaped the market. Starting in July 2020, the MPOB introduced daily guide prices for fresh fruit bunches, increasing transparency for smallholders. Mandatory MSPO certification under the MPOB Licensing Regulations 2005 enforced stricter effluent treatment standards in line with the Environmental Quality Act 1974. These measures aimed to improve long-term sustainability and oil extraction rates, though they initially required adaptation across the supply chain.

The market's stabilization near 94 992 thousand tons in 2023 reflected a balance between improving capacity and external challenges. Production benefited from the gradual return of foreign harvest workers and a larger base of mature oil palm areas. However, geopolitical tensions and trade barriers, particularly from the European Union linked to deforestation concerns, alongside labor shortages reported by major producers like Sime Darby Plantation, tempered export growth. Ongoing government and industry focus on research and development for value-added products sought to enhance competitiveness under these conditions.

Production palm nuts and kernels in Malaysia

In kind, 2018-2021, M t

Globally, Malaysia ranked as the second-largest producer of palm nuts and kernels from 2018 to 2021.

Top producers of palm nuts and kernels, 2018-2021

World map of production of palm nuts and kernels, 2018-2021

Malaysia's production of palm nuts and kernels declined for the second year in a row. In 2021, the country produced 91.4 million tonnes, marking a controlled decrease of 5.7% compared to the previous year. Over the period from 2018 to 2021, production fell by 7.1%, which translates to an annualized decline rate of 2.4%. The highest production level was recorded in 2019 at 99.1 million tonnes, with the largest year-on-year increase of 0.7% also occurring that year.

Annual dynamics of production in Malaysia in kind, 2018-2021, M t

Exports palm nuts and kernels from Malaysia

Exports in kind, t

The market showed significant fluctuations during this period. Export volumes reached their lowest point in 2018 and peaked in 2020, representing a 24-fold difference between these years. In 2021, Malaysia's exports of palm nuts and kernels stood at 4 584 tonnes, reflecting a sharp drop of 12.0% from the prior year. The maximum export volume was recorded in 2020 at 5 206 tonnes, which also saw the largest increase of 1 981.5%.

Annual dynamics of product's exports from Malaysia in kind, 2018-2021, t

From 2018 to 2021, Thailand was the primary buyer of palm nuts and kernels from Malaysia, accounting for 76.6% of total exports in volume. Other trading partners held relatively smaller shares during this time.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Malaysia in kind, 2018-2021

Exports in value, K $ US

The market experienced notable fluctuations in this period. Export values bottomed out in 2019 and peaked in 2021, with an 8.1-fold difference between these years. In 2021, Malaysia's exports of palm nuts and kernels totaled 4 038 thousand US dollars, which is 534.9% higher than in 2020. The minimum value was recorded in 2019 at 497 thousand US dollars, with the largest decline of 51.6% also occurring that year.

Annual dynamics of product's exports from Malaysia in value, 2018-2021, K $ US

Between 2018 and 2021, India, Thailand, and Indonesia consistently led as the top destinations for Malaysia's palm nuts and kernels exports in value terms. India accounted for 51.0% of exports, Thailand for 19.9%, and Indonesia for 14.1%, together making up 85.1% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Malaysia in value, 2018-2021

Imports palm nuts and kernels to Malaysia

Imports in kind, t

Malaysia's imports of palm nuts and kernels declined for the third consecutive year. In 2021, imports amounted to 46 137 tonnes, which is 19.8% lower than in 2020. Over the 2018-2021 period, imports decreased by 38.8%, with a compound annual growth rate (CAGR) of -15.1%.

Annual dynamics of product's imports to Malaysia in kind, 2018-2021, t

From 2018 to 2021, the import structure in volume terms was dominated by Indonesia and Thailand, which together represented 84.0% of total flows. Other markets contributed smaller shares, forming a long tail in the distribution.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Malaysia in kind, 2018-2021

Imports in value, K $ US

After two years of decline, Malaysia's imports of palm nuts and kernels in value terms increased in 2021. The country imported a total of 28 215 thousand US dollars worth of palm nuts and kernels, up by 41.0% compared to the previous year. Over the 2018-2021 period, imports decreased by 14.5%, with a CAGR of -5.1%. The lowest import value was recorded in 2020 at 20 015 thousand US dollars, while the largest decline of 37.9% occurred in 2019.

Annual dynamics of product's imports to Malaysia in value, 2018-2021, K $ US

During 2018-2021, Malaysia's imports of palm nuts and kernels in value terms were primarily directed towards Indonesia and Thailand. Their combined share reached 84.3% of total import flows, with other destinations playing a secondary role.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Malaysia in value, 2018-2021