10/08/2026
Close to half of Malaysia's palm oil production is concentrated in two states, Sarawak and Sabah, and both are experiencing prolonged dry conditions heading into harvest season.
Sarawak has seen the sharpest rainfall decline of any state in Malaysia. Sabah has been running below normal rainfall for around three months. Together these two states produce roughly nine million tonnes annually, nearly half the national total.
With harvest beginning in the coming weeks, the yield impact is still uncertain, but the window for recovery rain is narrowing. Sarawak's peat-heavy ground cover also adds a fire risk that could compound any production disruption from drought stress alone.
Procurement teams with palm oil exposure should be monitoring field-level conditions in both states as harvest progresses.
Data: cropgpt.ai