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I. Executive Summary

After continuous delays in implementing the B5 mandate, the Government of Malaysia (GOM) announced in early 2014 that July 2014 would be the new target for finally implementing the mandate throughout Malaysia. However, as of June 2014, it still appears this goal will not be fulfilled as several locations still don’t have distribution capability, particularly in East Malaysia. East Malaysia palm methyl ester (PME) producers are requesting to be paid more for their PME to compensate for what they describe as greater logistical challenges; specifically, PME producers are seeking an additional $31/ton to cover greater transport and handling costs. As a result of this impasse, it is unclear when/if GOM will achieve nationwide implementation of the B5 mandate.

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