Kuala Lumpur, 21 April 2026 – As geopolitical tensions continue to disrupt shipping routes in the Strait of Hormuz, Malaysia’s palm oil sector is once again highlighted as a vital strategic crop that supports food security, energy policy, export earnings, and national economic resilience.
In an opinion piece published today, Joseph Tek Choon Yee, former president of the Malaysian Estate Owners’ Association and past chief executive of the Malaysian Palm Oil Association, emphasised that what appears to be a story about war and fuel is, in reality, deeply connected to palm oil. Disruptions in the Strait of Hormuz affect global shipping, which in turn impacts fertiliser supply and oil palm yields. Higher crude oil prices have also reopened discussions on biodiesel, directly influencing domestic diesel supply, edible oil availability, and crude palm oil (CPO) prices.
“Malaysia is not ‘winning’ because other people’s shipping lanes are anxious,” Tek wrote. “But neither should we understate the strategic blessing of having a crop that remains edible, exportable, versatile and capable, under the right conditions, of serving more than one national purpose.”
Palm oil has historically acted as an economic buffer during crises. During the 1997 Asian Financial Crisis, palm oil export earnings rose 14.6% to RM10.8 billion, making it Malaysia’s largest export earner that year. In the 2008 Global Financial Crisis, it contributed about 30% of agriculture’s value added. More recently, during the 2021 pandemic period, total export revenue from palm oil and palm-based products surged 48% to RM108.52 billion, driven by strong price gains.
The article notes that the government’s adoption of B15 biodiesel (with B12 as the initial step) has made the link between biodiesel policy and palm oil more concrete, moving beyond theoretical discussions.
Tek stressed that while palm oil has repeatedly stood by Malaysia as a “buffer, ballast, and quiet economic shock absorber,” the country must now reciprocate by providing strong policy support. This includes pragmatic approaches to foreign worker policies, fair taxation, research and development, mechanisation, replanting programmes, and better logistics and marketing.
He called for improved inter-agency coordination, faster decision-making on strategic issues, stronger support for science-based productivity improvements, and more intelligent engagement with all stakeholders across the palm oil value chain.
“Malaysia, in truth, is blessed to have oil palm. But blessings, too, come with responsibilities,” Tek concluded. “A sector that has repeatedly helped carry the country should never be romanticised, but neither should it be taken for granted.”
The opinion piece serves as a timely reminder for policymakers to treat the palm oil industry with the seriousness it deserves, especially in an increasingly uncertain global environment.
