Malaysia will increase the minimum bio-content local producers must add to its biodiesel fuel to 10 percent from 7 percent starting on Dec 1.

Primary Industries Minister Teresa Kok said in a radio interview with national news agency Bernama on Wednesday that the government has given the approval to implement the B10 biodiesel mandate.

"The cabinet has approved the use of B10 and it will be implemented from Dec 1. We also have the agreement from the Federation of Malaysian Manufacturers that the industrial sector will use B7," she said in the interview which was posted to Bernama Radio's Facebook page.

Fuel stations in Malaysia currently use B7 biofuel.

Kok said with these measures, the use of palm oil locally was expected to double.

The B10 biodiesel programme will be implemented in the transport sector and other subsidised sectors in stages and will be mandatory from February 2019, Bloomberg News said yesterday, citing a letter from the Primary Industries Ministry to petroleum companies.

Malaysia and Indonesia are the top producers of palm oil globally.

- Reuters