KUALA LUMPUR, April 7 — The Malaysian Biodiesel Association (MBA) has called on the government to follow the proactive measures announced by other Asean counterparts and expedite the nationwide implementation of higher blends under the national biodiesel programme for both the transport and industrial sectors.
The association said that Indonesia and Thailand have announced measures to further advance their national biodiesel programmes by increasing biodiesel blending levels.
“Indonesia has moved from B40 to B50, while Thailand from B5 to B7 and expanded the availability of B20 as an alternative option,” it said
In a statement today, MBA opined that where blending infrastructure is already technically capable, higher biodiesel blending levels between B10 and B20 should be implemented immediately.
“While the MBA acknowledges that progress towards higher blends has been constrained by the readiness of blending infrastructure, the government should accelerate its upgrading to enable blending levels of up to B30 nationwide.
“The current global situation underscores that this is no longer a matter of policy preference, but one of national strategic importance,” it said.
MBA believed that, by leveraging Malaysia’s status as a leading palm oil producer, the government should further encourage the use of biodiesel outside the national biodiesel blending programme by exempting the 10 per cent sales tax on biodiesel.
“The combined impact of the national biodiesel programme and voluntary biodiesel use would enhance energy security, lower greenhouse gas emissions, savings in foreign exchange, reduce exposure to global oil price shocks and improve fiscal resilience, while continuing to support the domestic palm oil sector and rural livelihoods,” it said.
Meanwhile, MBA reiterated its strong support for higher biodiesel blending mandates as part of Malaysia’s immediate and long-term national objectives.
“This position should be firmly reinforced in the upcoming review of the National Biofuel Policy, supported by a coherent and well-articulated long-term biodiesel strategy.
“The impending implementation of the carbon tax mechanism in Malaysia should further encourage and justify the adoption of higher biodiesel blends in both the transport and industrial sectors in Malaysia. A clearer policy direction will provide much-needed certainty to industry stakeholders, investors, and consumers alike,” it said.
The association said that the current crisis presents not just risks, but an opportunity for Malaysia to reinforce its commitment to sustainable, domestically anchored energy solutions.
“MBA stands ready to work closely with the government and all stakeholders in advancing this critical national agenda,” it added. — Bernama
Date: 7 April, 2026 4:00 pm
Source: Malay Mail
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