21/03/2026

BIZ & FINANCE SATURDAY | MAR 21, 2026

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MPOB rolls out used cooking oil price reference portal

PETALING JAYA: While January and February exports were strong (+15.2%), escalating geopolitical tensions in the Middle East – including supply disruptions from the closure of the Strait of Hormuz and recent attacks on oil and gas facilities across the Gulf states pose material near term risks to global trade flows. UOB Global Economics and Markets Research, in a note, said the Middle East was Malaysia’s 10th largest export market in 2025, accounting for 3.4% of total shipments (Iran: 0.1%), with key exports comprising iron and steel, animal and vegetable oils and fats, aluminium, electrical machinery and equipment, coins, rubber, copper, and various chemical products. The bank-backed research firm said Malaysia’s exports to Iran were concentrated in animal and vegetable oils and fats, man made staple fibres, and organic chemicals. On the import side, the Middle East ranked as Malaysia’s sixth largest source in 2025 (5.1% of total imports), led by mineral fuels, plastics, organic chemicals, alu minium, edible fruits and nuts, ores, slag and ash, and machinery, including nuclear reactors and boilers. Imports from Iran were negligible at 0.02% of total imports. “Specifically on oil, Malaysia relies on imported crude petroleum and refined oil products for (about) 34% of its oil sales, of which 70.9% for crude petroleum and 13.5% for refined oil products are imported from the Middle East,“ the firm said. Exports grew for the third straight month but at a slower pace of 10.8% in February (down from 19.6% in January), missing expectations, while imports picked up to 8.2%, leading to a smaller trade surplus of RM16.7 billion compared to RM22 billion previously. The growth was mainly driven by strong demand for electronics, especially from the AI boom, along with stronger mining exports, which helped offset a sharp drop in agriculture. KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) is en couraging industry players and the public to participate actively in the trading of used cooking oil (UCO) as part of efforts to support the nation’s circular economy. To ensure transaction trans parency and facilitate the buying and selling of UCO, MPOB has provided a used cooking oil price reference portal for the domestic market, which can be accessed for free by all stakeholders, MPOB said in a statement. The launch of the UCO average price data information is part of the government’s continuous efforts through the Ministry of Plantation and Commodities to enhance market transparency, strengthen the price discovery mechanism, and reduce uncertainty within the oil palm industry value chain in Malaysia. MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir ( pic ) said the display of the UCO reference price provides a clearer and reliable

products such as biodiesel and sustainable aviation fuel (SAF), alongside various oleochemical products. “Globally, the demand for SAF is expected to increase significantly, driven by the international aviation industry’s commitment to achieving net-zero carbon emissions by 2050.” According to industry projections, SAF demand could increase by more than three to five times by 2030, consequently surging the need for raw materials such as UCO as a sustainable low-carbon source. MPOB said Malaysia has im mense potential in UCO supply due

o Board wants industry players and public to trade actively in the commodity to support Malaysia’s circular economy

economy, with the benefit of used cooking oil as a high-value raw material,” he said. He added that the supply of UCO is in

price benchmark, thereby supporting the development of a more transparent and inclusive UCO supply chain. “This initiative not only strengthens the integrity of

to the high consumption of palm cooking oil in the household and food service sectors, such as catering businesses and fried food vendors. – Bernama FIAM: Prolonged conflict will have severe impact on fertiliser market PETALING JAYA: The ongoing conflict in West Asia, if prolonged, could lead to severe structural disruptions in the Malaysian fertiliser market, according to the Fertilizer Industry Association of Malaysia (FIAM). The association said the West Asia region is currently a major supplier of natural gas, urea, ammonia and sulphur – important materials for the production of fertilisers globally. “Prolonged instability would con strain production capacity while simult aneously disrupting export flows. “The most critical impact would be on maritime logistics. With heigh tened risks in key shipping routes - Red Sea, Strait of Hormuz and the Suez Canal, vessels carrying bulk fertilisers would be forced to reroute around the Cape of Good Hope. “Such diversion would add 10 to 14 days to transit times, increase bunker fuel consumption by up to 40%, and significantly raise freight rates,“ FIAM said in a statement. In addition, it said, insurance premiums for ships transiting conflict zones would rise dramatically, in some cases tripling, further inflating landed costs. Further, FIAM noted that the compounded effect of longer voyages, higher freight charges, and reduced vessel availability would create a bottleneck in global supply chains. “Importing regions in Asia and Africa, which rely heavily on Middle East exports, would experience delays and shortages. “Traders and distributors, anti cipating further disruption, would continue to stockpile, adding specu lative demand pressure on top of physical scarcity.” At the same time, FIAM said, volatility in natural gas markets would push up ammonia production costs, and with shipping inefficiencies layered on top. FIAM said the plantation and the agriculture sectors must be prepared to contend with sustained cost escalation, supply rationing, and operational delays.

creasingly gaining global attention as a crucial raw material resource in the production of sustainable energy

the domestic UCO market but also aligns with the government’s aspi rations in driving the circular

M’sian exports remain strong but face new risks from Middle East disruptions: UOB research unit

The closure of the Strait of Hormuz and recent attacks on oil and gas facilities across the Gulf states pose material near term risks to global trade flows. – AFPPIC

gency Economic Powers Act), rendering the 2024 Reciprocal Trade Agreement between Malaysia and the US no longer applicable. “Therefore, Malaysia remains exposed to potential US trade actions should Section 301 findings indicate breaches of US trade rules. “Pending greater clarity on these developments, we maintain our 2026 full year export growth forecast at 2.5% for now, with risks tilted to the downside. “Based on our simulation, every US$10/bbl increase in Brent crude prices will reduce Malaysia’s external trade by 0.7ppt. As of March 20, Brent crude price is trading at US$102.34/bbl, its highest level since mid-2022,“ the research firm said.

months,“ the research firm said. The Strait of Hormuz handles roughly one third of the global fertiliser shipments of essential raw materials such as urea, sulfur, and ammonia, as well as a critical route for aluminium and sugar. UOB Global Economics and Markets Research also noted that further pressure comes from the new US Section 301 tariff investi gations covering 60 countries, including Malaysia. It noted that the US Trade Representative will conduct hearings on these investigations from April 28 to May 1. The shift to Section 301 follows a recent US Supreme Court ruling that invalidated earlier tariffs imposed under the IEEPA (International Emer

Without electronics, exports would have fallen, even as demand remained solid across major markets such as the US, Europe and China, UOB Global Economics and Markets Research said. The research firm also noted Prime Minister Datuk Seri Anwar Ibrahim has assured that Malaysia’s petroleum product supplies are secured at least until May, while coordinated measures are in place to support supply continuity from Jun onwards, according to the country’s national oil company. “Beyond energy, rising input costs and potential shortages of non oil and gas raw materials, such as fertilisers, are expected to weigh on export orders in the coming