Philippines palm oil industry ready for takeoff

Gets support from Malaysia

KUALA LUMPUR – As the Philippines moves to expand its palm oil industry, Malaysia, the world’s second-largest producer, has expressed its willingness to support the country’s efforts.

The Malaysian Palm Oil Council (MPOC), the promotional and market development body of the industry, said it would support the Philippines in growing its palm oil production.

MPOC CEO Belvinder Sron said Malaysia is prepared to share its expertise and technical know-how to help develop the Philippine palm oil sector, noting the country’s long experience in cultivating oil palm.

“We are ready to provide technical help if anyone needs it, because Malaysia has had over 100 years of experience in planting oil palm from the first commercial planting we did in 1917,” she said.

Sron said Malaysia has one of the biggest research and development institutes for palm oil, which could support any country willing to grow its domestic industry.

“Technical assistance is readily available from Malaysia for any country that needs it,” she added.

The Philippines is looking to develop about 300,000 hectares of palm oil plantations to boost local production and reduce dependence on imports, according to the Department of Agriculture (DA).

“Everyone wants to plant oil palm, since it’s a very high-yielding crop so everyone sees that as an opportunity because they have to provide oils and fats for their domestic needs,” Sron said.

She noted that MPOC is also prepared to collaborate with the Philippines’ coconut oil sector.

“We haven’t had that, but if anyone from the Philippines’s coconut oil industry would like to have a discussion on this, we are always open to that,” Sron said,

“I think if we can collaborate, it’s a win-win situation because a lot of coconut oil is also used in the chemical sector,” she added.

The country consumes more than one million metric tons (MT) of palm oil annually, with local production only accounting for about nine percent of demand.

The remaining 91 percent is imported, primarily from major Southeast Asian producers like Indonesia and Malaysia.

The Philippines produced about 140,000 MT of palm oil in 2025 from approximately 63,380 hectares of existing oil palm plantations.

The DA is seeking around P300 million for palm oil development under its 2027 budget.

The agency estimates that about P1 billion a year will be needed over the next five years to build up the industry.

Expanding local palm oil production can provide a domestic source of raw materials for food and industrial uses, while also supplying feedstock for biofuel production.