Malaysia is pressured to expand palm biodiesel production due to rising fuel costs caused by the Iran conflict. However, experts caution that high infrastructure costs and slow deployment make it an unlikely quick fix for the government's subsidy bill.

Malaysia is facing renewed pressure to expand palm-based biodiesel as the Iran war drives up fuel costs, but industry and academic observers say high infrastructure costs and slow roll-out make it an unlikely source of quick relief. That tension has sharpened as the government confronts a swelling fuel subsidy bill and greater exposure to imported supply shocks. The finance ministry last month said petrol and diesel subsidies could reach 4 billion ringgit (US$903 million) a month with crude oil....