Oil Palm Industry Economic Journal Vol. 2 (1) March 2002 p. 19-27

An Economic Analysis of the Malaysian Palm Oil Market

Basri Abdul Talib and Zaimah Darawi
Received:    Accepted:    Available Online:


The objectives of the study are to describe a national model of the Malaysian palm oil market and to identify the important factors affecting the Malaysian palm oil industry. The model is estimated by taking into account total oil palm area, oil palm yield, domestic consumption, exports and imports over the period of study between 1970 and 1999. The results show the importance of the Malaysian economic activity, the exchange rate and world population in affecting the palm oil industry. Other factors are palm oil stock level, price of palm oil, technological advancement in production technique and the price of soyabean oil

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