Soybean oil and fractions market in Malaysia

Earlier Report Observations

The Malaysian soybean oil and fractions market expanded from 86.4 thousand tons in 2018 to 120.1 thousand tons in 2020. This growth occurred in a context where soybean oil was a key competitor to palm oil in the country, with its relatively stable prices influencing palm oil demand and supply. The market's sharp rise in 2020 marked a peak during the period.

From 2021 onward, the market volume contracted significantly, falling to 72.2 thousand tons by 2023. This decline coincided with the mandatory enforcement of the Malaysian Sustainable Palm Oil (MSPO) certification under the MPOB (Licensing) Regulations 2005, which enhanced the sustainability and appeal of domestic palm oil. In 2022, economic resistance from developed economies, notably the European Union's ban on palm oil-based biofuels, pressured Malaysia's oil sector, though the government offset MSPO implementation costs for small private growers. By 2023, the market adjustment continued alongside the government's upgrade of the Cooked Oil Subsidy System (eCOSS) for real-time monitoring and the drafting of regulations to restrict subsidized packet oil purchases by foreigners from March 2026.

Subsequent developments included the Bursa Malaysia Derivatives Exchange's plan to introduce soybean oil futures contracts in 2024 to facilitate arbitrage, and in 2025, crude palm oil prices in Malaysia exceeded soybean oil prices for the first time, reflecting the ongoing competitive dynamics between the two oils in the regional market.

Production soybean oil and fractions in Malaysia

In kind, 2018-2021, K t

Top producers of soybean oil and fractions, 2018-2021

World map of production of soybean oil and fractions, 2018-2021

Malaysia's production of soybean oil and fractions declined for the second year in a row. In 2021, the country produced 110.3 K t, marking a slight decrease of 4.6% compared to the previous year. Over the 2018-2021 period, production grew by 11.8%, with an average annual growth rate of 3.8%. The highest production volume was recorded in 2019 at 118.0 K t, which also saw the largest annual increase of 19.6%.

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

Exports soybean oil and fractions from Malaysia

Exports in kind, K t

In 2021, Malaysia's exports of soybean oil and fractions totaled 113.0 K t, showing a modest year-over-year increase of 0.9%. From 2018 to 2021, exports decreased by 3.6%, with an average annual decline of 1.2%. The lowest export volume was in 2020 at 112.1 K t, which also experienced the largest drop of 5.6%. In contrast, the highest export volume was in 2019 at 118.7 K t, with the largest increase of 1.2% recorded that year.

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

From 2018 to 2021, the Philippines, Australia, and Indonesia were the top destinations for Malaysia's soybean oil and fractions exports by volume. The Philippines accounted for 25.5% of exports, Australia for 18.1%, and Indonesia for 13.8%. Together, these three countries made up 57.4% of total export flows.

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, M $ US

After two years of decline, Malaysia's exports of soybean oil and fractions in value terms rebounded in 2021. Exports reached 159.5 M $ US, a significant increase of 48.6% compared to 2020. Between 2018 and 2021, exports grew by 38.6%, with an average annual growth rate of 11.5%. The lowest value was recorded in 2020 at 107.4 M $ US, while the largest decline occurred in 2019 with a 6.0% drop.

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

From 2018 to 2021, the Philippines, Australia, and Indonesia were the leading markets for Malaysia's soybean oil and fractions exports by value. The Philippines contributed 23.9% of export value, Australia 19.4%, and Indonesia 14.4%. Combined, these three countries represented 57.7% of total export flows in value terms.

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

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

Imports soybean oil and fractions to Malaysia

Imports in kind, K t

In 2021, Malaysia's imports of soybean oil and fractions amounted to 86.6 K t, a sharp decline of 25.7% from 2020. Over the 2018-2021 period, imports decreased by 17.5%, with an average annual decline of 6.2%. The highest import volume was in 2020 at 116.6 K t, which also saw the largest increase of 27.3% that year.

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

Between 2018 and 2021, Argentina, China, and Brazil were the primary sources of soybean oil and fractions imports to Malaysia by volume. Argentina accounted for 49.6% of imports, China for 11.3%, and Brazil for 8.3%. Together, these three countries supplied 69.2% of total import flows.

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, M $ US

Malaysia's imports of soybean oil and fractions in value terms increased for the second consecutive year in 2021. Imports totaled approximately 108.6 M $ US, up 14.3% from the previous year. From 2018 to 2021, imports grew by 30.9%, with an average annual growth rate of 9.4%. The lowest value was recorded in 2019 at 67.0 M $ US, which also experienced the largest decline of 19.2%. In contrast, the largest increase occurred in 2020 with a 41.8% rise.

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

From 2018 to 2021, Argentina, China, and Brazil were the top suppliers of soybean oil and fractions to Malaysia by value. Argentina accounted for 46.8% of import value, China for 12.8%, and Brazil for 7.8%. Their combined share reached 67.5% of total imports in value terms.

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

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