Malaysia has reported ‘swelling palm oil inventories’ that are straining the country’s storage capacity in Sarawak, Borneo, due to a larger-than-normal harvest season and growing freight costs.
Reports show that, across Malaysia, inventories of palm oil hit a record 3.51 million tonnes in September 2026, despite October being peak harvesting season. Borneo accounts for more than a fifth of Malaysia’s palm oil output, with most of its stock moving through Bintulu Port.
With extra stock and slowing exports, the resulting shortage of tank space could force mills to slow processing, which would disrupt the flow of fresh fruit from plantations and smallholders at the height of the harvesting season.
SD Guthrie Bhd president and group chief executive officer Mohd Haris Mohd Arshad says that the government and industry officials are continuing meetings to discuss how to move excess supplies overseas. He adds: ‘We don’t want to jeopardise the supply chain… The last thing we want is for farmers not to be able to sell their fruit.’
Plantation and commodities minister Datuk Seri Dr Noraini Ahmad comments: ‘At this stage, it is still under consideration and requires further discussion.’
