Weak demand from Iran weighs on palm oil sector, says Matrade chairman

KUALA LUMPUR (April 21): During a media briefing on Tuesday, he said exports of palm oil and palm-based products to Iran tumbled 86.1% year-on-year to RM90 million in the first quarter of 2026. Palm oil and palm-based products accounted for 62.4% of Malaysia’s total exports to Iran during the period. Beyond palm oil, Reezal Merican noted that petroleum products and agricultural exports had also been hit by the ongoing tensions. He added that disruptions to fertiliser supply — estimated at around 30% of global supply from Middle East — are affecting the agricultural sector. Trade with West Asia declined 30.4% in the first quarter, with exports contracting 23.6%, reflecting lower shipments of palm oil, petroleum products and electrical and electronics goods. However, the direct impact is limited as the region only accounted for only 2.7% of Malaysia’s total trade. Furthermore, it was offset by stronger export growth to non-conflict markets in Africa, Latin America and Central Asia, ...