Kuala Lumpur: Malaysia has no immediate plans to increase its palm oil-based biodiesel blend from 10% to 20%, as the required infrastructure investments are too costly for both the government and industry, Plantation and Commodities Minister Johari Abdul Ghani said on Monday, reports Reuter.
Speaking in parliament, Johari highlighted that implementing a 20% biodiesel mandate (B20) nationwide would require an estimated 643 million ringgit ($146.2 million) in infrastructure investments.
“Our discussions with industry stakeholders indicate they expect the government to fund this expansion, but we are not prepared to do so,” he stated.
Currently, Malaysia maintains a 10% biodiesel mandate (B10), with B20 only enforced in Labuan, Langkawi, and most of Sarawak (excluding Bintulu).
Meanwhile, Indonesia, the world’s top palm oil producer, has already launched a B40 mandate, tightening global palm oil supplies and making palm oil more expensive than competing vegetable oils.
As of Monday, the exchange rate stood at 1 USD = 4.3980 MYR.
