InfoSAWIT, KUALA LUMPUR - Malaysia has decided to maintain its biodiesel blend mandate at 10 percent, citing financial constraints and infrastructure challenges. This announcement was made by the Minister of Plantation and Commodities, Johari Abdul Ghani, on Monday, stating that both the government and the industry are unwilling to bear the estimated cost of 643 million ringgit ($146.20 million) required for infrastructure upgrades.

Currently, Malaysia implements a national biodiesel mandate of 10 percent, with a 20 percent blend enforced in Labuan, Langkawi, and Sarawak, except for Bintulu. However, the expansion of higher blends nationwide remains uncertain due to funding limitations.

"Our interactions with industry stakeholders indicate that they want the government to fund this, but we are not ready to finance it," Johari said during a parliamentary session, as quoted by InfoSAWIT from Channel News Asia on Tuesday (February 25, 2025).

Meanwhile, Indonesia, the world's largest palm oil producer, has accelerated its biodiesel program with a B40 blend mandate. This policy has contributed to tightening supply in the global market, making palm oil more expensive compared to other vegetable oils. (T2)