Mideast conflict clouds Malaysia’s palm industry
In Vietnam, Vietnam Plus reported that the ongoing conflict in the Middle East is casting a shadow over Malaysia’s plantation sector, driving up costs and potential demand disruption.
RHB Research analyst Hoe Lee Leng said the geopolitical tensions have created a “multi-faceted impact” on the industry.
The analyst said shipping route closures near the conflict zone threaten demand from countries such as Pakistan, Egypt, Saudi Arabia, Turkey, the United Arab Emirates and Iran, potentially affecting up to 15% of global palm oil consumption.
The report also stated that Malaysian palm oil stocks are projected to fall 8% month-on-month to 2.48 million tons in March 2026, while production is expected to increase 12% to 1.44 million tons.
Category: Food & Agriculture
