KNOWLEDGE CENTRE / MALAYSIA SAF MANDATE

Malaysia's SAF mandate,
what's actually proposed.

Malaysia plans to require 1% sustainable aviation fuel (SAF) on international flights departing KLIA, with a proposed start in January 2027. Here is where the proposal stands, the policy behind it, who it would affect, and what is still to be decided.

LAST UPDATED 31 OCTOBER 2026

01 / WHERE IT STANDS

Where it stands

Proposed, not yet in force. The government has said it is drafting a 1% SAF blending requirement for international flights departing KLIA from January 2027. As of 31 October 2026, we have not found a published regulation setting out the final rules. We will update this page when one is issued.

The most recent official statements we found on the mandate itself date from late 2025, when the Plantation and Commodities Minister said it was being finalised with the Ministry of Transport and industry stakeholders. In October 2026, CAAM said the move to SAF must take into account production costs and what airlines can reasonably afford.

Sources: BioEnergy Times, citing New Straits Times: Malaysia moves ahead with 1% SAF blending mandate for KLIA flights (24 Nov 2025) · The Malaysian Reserve: SAF transition must not compromise air travel affordability, says CAAM (19 Oct 2026)

02 / WHAT IS PROPOSED

What is proposed

  • Scope: international flights departing Kuala Lumpur International Airport (KLIA).
  • Level: an initial 1% SAF blend.
  • Start: January 2027 (proposed).
  • Who is drafting it: the Ministry of Plantation and Commodities (KPK), working with the Ministry of Transport, industry and other stakeholders.

The KLIA proposal was set out in the Dewan Negara on 27 August 2025 by Deputy Plantation and Commodities Minister Datuk Chan Foong Hin. He said the ministry was also preparing a SAF production strategy covering feedstock assessments and used cooking oil collection, and facilitating licensing of SAF plants under the Malaysian Biofuel Industry Act 2007. On 24 November 2025, then Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani described the 1% requirement as the core policy for Malaysia's shift to low-carbon jet fuel.

Sources: Bernama: Malaysia to start SAF production by end-2025 (27 Aug 2025) · Free Malaysia Today: Malaysia to start producing SAF by year end (27 Aug 2025) · BioEnergy Times, citing New Straits Times: Malaysia moves ahead with 1% SAF blending mandate for KLIA flights (24 Nov 2025)

03 / THE POLICY BEHIND IT

The policy behind it

National Energy Transition Roadmap (NETR, 2023)Sets a 1% SAF aspiration by 2027 and proposes up to a 47% SAF blending mandate by 2050, with incentives for production and infrastructure and a framework to raise mandates over time.
Malaysia Aviation Decarbonisation Blueprint (MADB, Ministry of Transport, 2024)Expects SAF to deliver 46.2% of aviation decarbonisation by 2050, alongside aircraft technology (18%), operations (5%) and market-based measures (30.8%).
National SAF Task Force (since 2023)Chaired by CAAM and Malaysia Aviation Group, with airlines, ministries, regulators and fuel producers. It advises the government on the SAF roadmap, incentives, costs and blending mandates.

Market analysts have pointed to the gap between targets and rules: a January 2026 BIMB Securities note, quoted by The Star, said the MADB roadmap lacked binding enforcement mechanisms or interim milestones, and that the absence of clear mandates could delay adoption by domestic airlines.

Sources: National Energy Transition Roadmap (Ministry of Economy, 2023) · Malaysia working paper to the ICAO 42nd Assembly (WP/579) · The Star: Building the case for sustainable aviation fuel (5 Jan 2026)

04 / WHO IT WOULD AFFECT

Who it would affect

  • Airlines flying international routes out of KLIA, which would need SAF in the fuel they uplift there.
  • Fuel suppliers and KLIA's fuel system: Malaysia's first locally blended SAF was delivered to KLIA by pipeline in September 2025, showing the blending and delivery route already works.
  • Producers: a mandate creates a domestic buyer for plants such as EcoCeres in Johor (producing since 2025) and the PETRONAS, Enilive and Euglena biorefinery planned at Pengerang.
  • Feedstock collectors: used cooking oil and palm and other residues are Malaysia's main identified SAF feedstocks.
  • Passengers: how any cost would be passed on has not been published.

The US International Trade Administration notes that KLIA handled about 42 million international passengers in 2024, so even a 1% requirement would create a meaningful, policy-backed market. See key projects and players and feedstocks in the region.

Sources: US International Trade Administration: Malaysia SAF market intelligence · Malaysia working paper to the ICAO 42nd Assembly (WP/579)

05 / TIMELINE

Timeline

2023NETR published with a 1% SAF aspiration by 2027 and up to 47% by 2050. National SAF Task Force set up.
Sep 2024Ministry of Transport launches the Malaysia Aviation Decarbonisation Blueprint.
27 Aug 2025KPK tells the Dewan Negara it is drafting a 1% SAF mandate for international flights from KLIA from January 2027.
Sep 2025First locally blended SAF delivered by pipeline to KLIA.
Oct 2025Commercial SAF production begins at EcoCeres, Tanjung Langsat.
24 Nov 2025Minister says the mandate is being finalised with the Ministry of Transport and industry.
19 Oct 2026CAAM stresses cost and airline affordability at Aviation Sustainability Day 2026.
Jan 2027Proposed start of the 1% KLIA requirement.
2H 2028Targeted start of the Pengerang biorefinery.

Sources: National Energy Transition Roadmap (Ministry of Economy, 2023) · Bernama: Malaysia to start SAF production by end-2025 (27 Aug 2025) · BioEnergy Times, citing New Straits Times: Malaysia moves ahead with 1% SAF blending mandate for KLIA flights (24 Nov 2025) · The Malaysian Reserve: SAF transition must not compromise air travel affordability, says CAAM (19 Oct 2026) · The Star: Building the case for sustainable aviation fuel (5 Jan 2026)

06 / HOW IT COMPARES

How it compares with the region

CountryMeasureStatus
Malaysia1% SAF on international departures from KLIA from Jan 2027Proposed
Singapore1% SAF target, aiming for 3–5% by 2030; a passenger levy on flights departing from 1 January 2027 funds central SAF purchasingLevy confirmed. See what the Singapore SAF levy costs
Indonesia1% SAF for international flights from 2027, starting at Soekarno-Hatta and BaliRegulation being prepared
ThailandSAF fuel specification and an initial 1% blend in Jet A-1 from 1 January 2026Initially voluntary

Sources: CAAS: National SAF target and SAF Levy · Bisnis.com: Indonesia prepares 1% SAF mandate for 2027 (in Indonesian) · The Nation Thailand: SAF standards and 1% blend

07 / STILL TO BE DECIDED

What is still to be decided

Based on the public record, these details have not yet been published:

  • The legal instrument and which agency enforces it.
  • Whether the 1% is measured per airline, per fuel supplier or across the airport.
  • How compliance is shown, for example whether certified SAF or book-and-claim credits count.
  • How costs are recovered, and whether passengers see a charge.
  • Whether domestic flights or other airports follow, and the path beyond 1%.

SAF Malaysia's podcast will put these questions to the people shaping the answers. See the episodes.

08 / FAQ

Frequently asked questions

Does Malaysia have a SAF mandate?

Not yet in force. The government has said it is drafting a proposal for a 1% sustainable aviation fuel (SAF) blending requirement for international flights departing KLIA, starting January 2027. As of 31 October 2026, we have not found a published regulation setting out the final rules.

What is the proposed Malaysia SAF mandate?

An initial 1% SAF blend for international flights departing Kuala Lumpur International Airport (KLIA). It was announced as a proposal in the Dewan Negara on 27 August 2025, with implementation details being finalised with industry and other stakeholders.

When would Malaysia's SAF mandate start?

The proposed start is January 2027. That date has not been confirmed in a published regulation that we have found.

Which ministry is responsible for Malaysia's SAF mandate?

The Ministry of Plantation and Commodities (KPK) has said it is drafting the proposal and working with the Ministry of Transport. The Civil Aviation Authority of Malaysia (CAAM) and Malaysia Aviation Group chair a national SAF Task Force set up in 2023.

What is Malaysia's long-term SAF target?

The National Energy Transition Roadmap (NETR) sets a 1% SAF aspiration by 2027 and proposes up to a 47% SAF blending mandate by 2050. The Malaysia Aviation Decarbonisation Blueprint expects SAF to deliver 46.2% of aviation decarbonisation by 2050.

Will Malaysian passengers pay a SAF levy like Singapore's?

Malaysia has not announced a passenger SAF levy. How the cost of a KLIA mandate would be recovered has not been published. In October 2026, CAAM said the SAF transition must take into account production costs and what airlines can reasonably afford.

Is Malaysia producing SAF already?

Yes. Commercial SAF production began in Malaysia in 2025, and Malaysia's first locally blended SAF was delivered by pipeline to KLIA in September 2025. See the Knowledge Centre for the plants and projects.

09 / SOURCES

Sources

  1. Bernama: Malaysia to start SAF production by end-2025 (27 Aug 2025)
  2. Free Malaysia Today: Malaysia to start producing SAF by year end (27 Aug 2025)
  3. BioEnergy Times, citing New Straits Times: Malaysia moves ahead with 1% SAF blending mandate for KLIA flights (24 Nov 2025)
  4. Malaysia working paper to the ICAO 42nd Assembly (WP/579)
  5. National Energy Transition Roadmap (Ministry of Economy, 2023)
  6. The Star: Building the case for sustainable aviation fuel (5 Jan 2026)
  7. The Malaysian Reserve: SAF transition must not compromise air travel affordability, says CAAM (19 Oct 2026)
  8. US International Trade Administration: Malaysia SAF market intelligence
  9. CAAS: National SAF target and SAF Levy
  10. Bisnis.com: Indonesia prepares 1% SAF mandate for 2027 (in Indonesian)
  11. The Nation Thailand: SAF standards and 1% blend

Prepared by the SAF Malaysia editorial team, with NAICO as Founding Knowledge Partner. Spotted something out of date? Email [email protected].