By Lasheeni Ghobi
KUALA LUMPUR, 27 August 2025: Malaysia is on track to begin domestic production of Sustainable Aviation Fuel (SAF) by the end of this year, a significant step toward decarbonizing its aviation sector and enhancing its position in the global biofuel industry. The country’s efforts are being led by key players in the agri-commodity and energy sectors, aiming to leverage its abundant renewable resources.
The commercial operations for SAF production are expected to commence at the Ecoceres Renewable Fuels Sdn Bhd plant located in Tanjung Langsat, Johor. This initiative aligns with the Malaysian government’s goal to become a major producer and exporter of SAF in the region.
The move to produce SAF is supported by a multi-pronged approach from the government and private sector. Deputy Plantation and Commodities Minister Datuk Chan Foong Hin announced that the ministry is preparing a strategic document to outline a plan that includes feedstock availability assessments and campaigns to collect used cooking oil (UCO).
Beyond Ecoceres, Malaysia’s national oil company, Petronas, is also in a partnership with Enilive and Euglena to construct a separate SAF refining and production plant in Pengerang, Johor. Together, these two plants are projected to contribute a significant annual production capacity to the country’s SAF supply.
In a related development, Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, has partnered with FatHopes Energy Sdn Bhd to explore the potential of using UCO as a primary feedstock for SAF. This collaboration focuses on assessing the feasibility of scalable production and developing a resilient supply chain.
The production of SAF from renewable sources like UCO and palm oil positions Malaysia to meet the growing global demand for greener aviation fuels. However, there are challenges to address, including a potential supply shortfall of UCO and regulatory hurdles related to palm oil, which is a key biofuel feedstock.
Looking ahead, the government is drafting a proposal to introduce a one-percent SAF blending mandate for international flights departing from Kuala Lumpur International Airport (KLIA) starting in 2027. This initiative, part of a broader strategy, aims to strengthen Malaysia’s position as a regional leader in the sustainable aviation industry and support its National Energy Transition Roadmap, which targets a 47% SAF blend by 2050.
