Oil Palm Industry Economic Journal Vol. 21 (1) March 2021 p. 28-41

The Impact of Negative Perceptions towards Palm Oil in the European Union on the Competitiveness of Malaysian Palm Oil Exports

Kamalrudin Mohamed Salleh*; Kalsom Zakaria*; Rafizah Mazlan*; M. Ayatollah Khomeini Ab Rahman* and Balu Nambiappan*
Received: 18 December 2020   Accepted: 10 March 2021   Available Online: 31 March 2021


The anti-palm oil campaigns by a number of European countries have been of great concern to the Malaysian palm oil industry. Such campaigns will possibly bring about a negative image of palm oil, and thus potentially affect the marketability of palm oil products in these markets. This study aimed to assess the impact of the negative perceptions towards palm oil based on environmental and health grounds on the export competitiveness of Malaysian palm oil vis-á-vis Indonesian in selected European countries as a result of the anti-palm oil campaigns. The study employed comparative trend analysis in analysing the relationships between negative perceptions and export competitiveness. The study indicated that the negative perceptions of palm oil are affecting the competitiveness of Indonesian palm oil exports more than Malaysian. Malaysian palm oil exports are more affected when the anti-palm oil campaigns are intensified.

About Post Author

* Malaysian Palm Oil Board,
6, Persiaran Institusi,
Bandar Baru Bangi,
43000 Kajang, Selangor, Malaysia.
E-mail: kamalrudin@mpob.gov.my