KUALA LUMPUR, Jan 13 — The Malaysia Palm Oil Board (MPOB) will introduce an official used cooking oil (UCO) reference price in the first quarter of 2026, said Plantation and Commodities Minister Datuk Seri Noraini Ahmad.
She said the benchmark will provide clear price guidance, support fair trade, and protect small players from price manipulation and fraud, while playing an important step towards a more orderly and sustainable UCO market.
“UCO plays an important role in this transition (turning waste into valuable resources), especially for downstream uses such as biofuels and palm-based chemical products.
“MPOB continues to strengthen governance, clear tracking and market oversight to ensure that UCO is managed in a safe and orderly manner,” she said in her opening speech at the Palm Oil Economic Review And Outlook (R&O) Seminar 2026.
Meanwhile, Noraini said the average crude palm oil price increased by 2.7 per cent to RM4,292 per tonne in 2025 from RM4,179 per tonne in 2024.
She said export revenue for palm oil and palm-based products is expected to exceed RM100 billion in 2025, with crude palm oil production approaching 20 million tonnes.
“This is a strong achievement. From the government's view, our future competitiveness depends on three key areas: higher productivity, stronger sustainability assurances, and faster adoption of innovation,” she added.
On prospects, Noraini opined that Malaysia’s palm oil outlook remains positive, with the priority being to strengthen productivity, sustainability and adaptability together.
She said Malaysia must focus on quality, sustainability and traceability rather than volume alone; thus, the government will continue to strengthen its assurance system to keep Malaysian palm oil trusted and competitive.
“I am very confident that the Malaysian oil palm industry has a strong and resilient future, and growth must go hand in hand with sustainability, inclusiveness and innovation.
“This requires close cooperation between the government, industrial players, researchers and (also) the smallholders,” she said.
The R&O seminar, organised by MPOB with the theme “Securing the Future of Palm Oil in a Changing Global Economy”, gathers more than 400 industry experts and academicians to discuss the 2025 market performance, the potential for 2026, and the strategies and direction for the Malaysian palm oil industry.
The event also saw the launch of the Small Bites, Big Impact – The Red Palm Oil Biscuit Story booklet, which highlights findings from the red palm oil supplementation study conducted by MPOB with Universiti Malaya.
