A Controversial Mandate to Protect the Malaysian Palm Oil Industry This study offers a detailed overview of the biodiesel mandate in Malaysia and the steps taken by the Malaysian government to protect the Malaysian palm oil industry.Palm oil is a key ingredient in the biodiesel produced in Malaysia.
Biodiesel is the main kind of biofuel used in the country.This research service gives an understanding of the factors leading to the B10 mandate in Malaysia.
It analyses the strategically important factors, market trends, regulatory trends, and the impact of the same on the automotive sector.
Factors such as strong government support, excellent R&D facilities, a large number of plantation estates, low crude palm oil market price and a global commitment to use renewable and sustainable sources of energy are the key market drivers for the growth of the biofuel market.However, for sustained growth, the industry must overcome certain challenges and restraints such as the EU Renewable Energy Directive (RED) that restricts the import of palm oil from Malaysia from 2021, biodiesel chemical incompatibility with diesel engine, labor shortage at plantation estates, and inconsistencies in weather.
In 2006 the Malaysian government launched the National Biofuel Policy (NBP) as an initiative to further spur the biofuel market.
Research Scope This study includes an executive summary, introduction, strategically important factors, national biofuel policy, market overview, regulatory and legislative trends, impacts on the automotive sectors, industry scenario, timeline, current status and next steps, challenges, and the drivers and restraints that affect the biofuel market.
The base year for the study is 2017, with the forecast period being 2018 to 2020.
Key Features • To offer an elaborate and detailed overview of the biofuel mandate in Malaysia. • To build a comprehensive picture of the biodiesel mandate in Malaysia, including how it was proposed, why it was proposed, and what is the ultimate objective of the policy. • To highlight the main issues at hand including what is the industry feedback on the B10 mandate and how the government is handling the issue.
Key Issues Addressed • What is the Malaysia Government stance in introducing alternative fuel from renewable sources? • What is the reaction from the industry with regard to the Malaysia Biofuel Mandate? • What is the impact (negative and positive) and the implication of introducing Biofuel Mandate to the market? • Who are the beneficiaries of this policy and vice versa? • What is the latest status of the policy and what is the interim solution for this mandate?
Author: Mohd Fahrurazi
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