25/02/2026

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BIZ & FINANCE WEDNESDAY | FEB 25, 2026

Malaysia’s January palm oil output shows seasonal drop

MSC Q4 revenue climbs on higher tin prices KUALA LUMPUR: Tin miner and metal producer Malaysia Smelting Corporation Bhd (MSC) recorded revenue of RM480.7 million for Q4 ended Dec 31, 2025 (FY25), representing a 7.2% YoY increase from RM448.5 million in Q4’24. The growth was mainly driven by a higher average realised tin price of RM158,100 per MT, up from RM133,700 previously, despite lower refined tin sales volume. The tin smelting segment registered a higher profit before tax of RM31.3 million compared with RM26.6 million in Q4’24. This was supported by higher sales and encashment of tin intermediates with a higher margin, higher profit from sales of tantalum slag, foreign exchange gain and cost savings following the closure of the Butterworth plant, despite lower ore intake from suppliers due to supply shortages. Meanwhile, the tin mining segment recorded a profit before tax of RM25.4 million, lower than RM27.1 million in Q4’24. The decline was due to reduced production following a three-week suspension of mining operations, despite higher tin prices. For FY25, MSC recorded revenue of RM1.76 billion, representing a 4.1% year-on-year (YoY) increase from RM1.69 billion recorded in FY24. The improvement was primarily driven by sales of tin-bearing intermediates and by-products, as well as a higher average tin price of RM146,100 per MT in FY25 compared with RM138,500 per MT in FY24, despite lower refined tin sales volume during the year. Net profit rose 3.3% YoY to RM82 million in FY25 from RM79.4 million in FY24. For the tin smelting segment, MSC registered a profit before tax of RM26 million in FY25 compared with RM32.3 million in FY24. Performance was affected by lower ore intake from suppliers and by a temporary production disruption following the gas pipeline fire incident at Putra Heights in Q2 of 2025, partially mitigated by the positive contribution from higher encashment of tin intermediates with higher margins. The tin mining segment delivered a profit before tax of RM116.6 million in FY25, compared with RM110.4 million previously, driven by higher average tin prices. Co-group CEO Lam Hoi Khong said the group’s financial performance reflects the overall resilience of the group’s operations amid operational challenges. MSC has recommended a final single-tier dividend of 4 sen per share, amounting to RM33.6 million, subject to shareholders’ approval at the forthcoming annual general meeting.

KUALA LUMPUR: Malaysia’s palm oil production eased seasonally to 1.58 million tonnes in January, down 13.8% month-on month, while exports strengthened to 1.48 million tonnes, up 11.4% from December, marking the second-highest monthly export volume in the past 12 months. According to a statement by the Malaysian Palm Oil Council (MPOC), the increase in exports was driven primarily by stronger demand from India and Egypt, with shipments to India reaching a 15-month high and exports to Egypt climbing to a 13 month high. Palm oil fundamentals are expected to gradually improve in the coming months. Firmer Malaysian exports in Q1 and Indonesia’s front-loading of shipments ahead of the March export levy hike are projected to reduce palm oil inventories in both countries. MPOC said on the demand side, India is expected to shift consumption back towards palm oil following improved price competitiveness since late 2025. Palm oil consumption in India is forecast to rise by 800,000 tonnes in 2026, while soybean and sunflower oil consumption is expected to decline by a combined 400,000 tonnes. January 2026 data reflects this shift, with India’s palm oil imports rising to a 4-month high, while soybean oil imports falling to an 11-month low. MPOC noted that globally, vegetable oil prices remained well supported in February, underpinned by optimism surrounding US biofuel policy and firmer crude oil prices amid escalating geopolitical tensions between the US and Iran. Brent crude oil prices rebounded 17% year to-date to US$72 in February, while prices of the four major vegetable oils increased between 1% and 7% over the same period. o Shipments hit second highest level in a year as India demand rebounds and Egypt volumes jump

Improving Indian demand and firm global vegetable oil prices are expected to support palm oil markets despite rising soybean supply risks. – BERNAMAPIX

expected to maintain this position in 2026, with exports projected at around 850,000 tonnes. India accounted for nearly half of China’s soybean oil exports last year. “Tightening near-term supply, improving Indian demand, and firm US soybean oil prices should keep palm oil prices supported. “However, ample global soybean supply and rising Chinese soybean oil exports may limit gains. “Palm oil prices are therefore projected to consolidate within the range of RM4,000 4,300 per tonne in March,” MPOC said.

Optimism over US biofuel policy, which favours domestically produced soybean oil, further lifted prices. US soybean oil rallied 17% in February, trading at a significant premium of US$172 over Argentine-origin soybean oil. The sustained strength in US soybean oil prices is likely to continue supporting palm oil prices. Despite these supportive factors, MPOC said the upside potential in palm oil prices may be partially capped by rising soybean crushing, particularly in China. The country became a net exporter of soybean oil for the first time in 2025 and is

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