Minister Johari Ghani today emphasised the need for SAF production factories such as the one by Petronas, which can produce 650,000 tonnes, and another by EcoCeres Renewable Fuels Sdn Bhd (Hong Kong), which has a 350,000-tonne capacity.

“When both these factories are operational, Malaysia could potentially produce up to one million tonnes of SAF a year,” he told the Dewan Rakyat in response to a question by Khairil Nizam Khirudin (PN-Jerantut) on SAF and its potential value to the economy.

He said Malaysia is expected to start producing SAF in 2027, with capacity to rise in stages depending on plant capacity and the availability of raw material.

Johari said that as the world’s second-largest palm oil producer, Malaysia is in a strategic position to become a leading global SAF producer.

He said his ministry is collaborating with the investment, trade and industry ministry to develop a document on a national strategy for SAF to support Malaysia’s SAF production and consumption industries.

Johari said this aligns with the Malaysia Aviation Decarbonisation Blueprint and supports the nation’s goal of becoming Southeast Asia’s leading SAF producer.