Malaysia palm oil exports surge as Indonesia embraces protectionist policies

Malaysia palm oil exports surge as Indonesia embraces protectionist policies

Malaysia has significantly increased its palm oil exports after the world’s biggest producer Indonesia imposed an export ban last month, as demand for the commodity rises during a global cooking oil supply crunch.

Deliveries of palm oil from Malaysia surged 40 per cent in the first 10 days of May compared with the same period during the previous month to 390,938 tonnes, according to data from cargo surveyor Intertek.

Malaysia, which is under pressure to boost its finances during a simmering political crisis, has set itself apart from other exporters embracing food protectionism as it seeks to capitalise on rising commodity prices. Last month, finance minister Zafrul Aziz told the Financial Times that soaring oil prices could help the country improve its balance sheet.

Global supply disruption caused by the pandemic and the Ukraine war has changed the outlook for palm oil, a commodity that has faced boycotts in the west over links to deforestation and labour abuses at plantations.

UK supermarket Iceland said in March it would reverse an earlier commitment to stop using palm oil after the invasion of Ukraine, an important sunflower oil exporter, forced it to look for alternatives.

In May, Europe increased shipments from Malaysia, with deliveries soaring more than