The Government of Malaysia has announced that it will roll out a nationwide B20 biofuel adoption mandate by the end of 2022. The mandate to produce biofuel with a 20 per cent palm oil component, also known as B20, for the transportation sector was first implemented in January 2020, but it was delayed due to COVID-19 related restrictions imposed across the country as well as the high crude palm oil (CPO) feedstock prices, which increased the cost of subsidising the programme.

Before the B20 requirement can be implemented, the government will update infrastructure at 30-35 gasoline depots, which is expected to cost approximately RM50 million. The requirement for biodiesel blending in industrial applications remains at 7 per cent, with no timeframe specified for raising it to B10.