Oil Palm Industry Economic Journal Vol. 2 (2) September 2002 p. 10-15

Malaysian Palm Oil Industry at Crossroads and its Future Direction

Khoo Khee Ming and D Chandramohan
Received:    Accepted:    Available Online:


Palm oil accounts for 20% and 46% of the global oil and fats production and trade respectively. Malaysia is the world ís largest producer and exporter of palm oil with a 50% share of world palm oil production and 61% of exports. This paper assesses the growth of the Malaysian palm oil industry and the limitations of land and labour on the future growth of the industry. The industry ís competitive edge will continue to be a vital factor for its future development. Thus, in order to remain competitive, the industry needs to improve on productivity, explore opportunities to diversity the income base, widen the end-use base for palm oil, explore new marketing approaches and intensify vertical integration.

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