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Malaysian crude palm oil prices forecast to stay high at RM4,350 in 2026
🇲🇾 Malaysia /Economy & Trade

Malaysian crude palm oil prices forecast to stay high at RM4,350 in 2026

From Utusan Malaysia · () Malay

Translated from Malay, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Hong Leong Investment Bank (HLIB) maintains its forecast for crude palm oil (MSM) prices to remain high at RM4,350 per tonne in 2026.
  • The projection is supported by strong global crude oil prices and stable MSM prices.
  • Despite rising costs from Middle East tensions, the Malaysian palm oil sector's short-term earnings outlook remains positive.

Kuala Lumpur – Hong Leong Investment Bank Bhd. (HLIB) has reaffirmed its forecast for crude palm oil (MSM) prices, projecting an average of RM4,350 per tonne for 2026. This optimistic outlook is primarily driven by the sustained strength in global crude oil prices, which influences the vegetable oil market.

The investment bank noted that despite increasing cost pressures stemming from geopolitical tensions in the Middle East, the short-term earnings sentiment for Malaysia's plantation sector remains robust. This stability is attributed to the firm MSM prices and positive projections for fresh fruit bunch (TBS) yields.

HLIB's analysis suggests that the factors supporting high palm oil prices are expected to persist, providing a favorable environment for Malaysian palm oil producers. The bank's consistent forecast indicates confidence in the market's resilience and the sector's ability to navigate potential economic headwinds.

DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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