Vol. 16 (2) September 2016 – OPIEJ https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Thu, 21 Mar 2019 01:33:27 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 Total Factor Productivity: How Productive is the Palm Oil Milling Sector in Malaysia? https://opiej.mpob.gov.my/total-factor-productivity-how-productive-is-the-palm-oil-milling-sector-in-malaysia/ Wed, 29 Aug 2018 00:19:46 +0000 https://opiej.mpob.gov.my/?p=383 Read more]]> This study investigates the total factor productivity (TFP) growth for Malaysian palm oil mills over the period 2010 – 2014, using the stochastic frontier analysis (SFA) model. TFP focuses on three components, namely, technical efficiency (TE), technical progress (TP), and scale components (SC). The first step in estimating TFP comprises specification and estimation of SFA, followed by tests for specification of the stochastic production functions. Secondly, it involves the selected specification of a regression model used to predict the TE effects. The empirical results show that productivity growth was driven mainly by TE, followed by TP. However, the change in SC had a small effect on productivity growth. Overall, results of the study suggest that there is an opportunity to improve productivity growth in the palm oil milling sector in Malaysia, for instance, by improving working conditions, upgrading the capacity of the mills, and providing incentives and rewards to the workers

Keywords: total factor productivity, Malaysian palm oil mills, technical progress, technical efficiency, scale components

]]> The Push and Pull Factors in Business: A Study on Independent Oil Palm Smallholders in Selected States in Malaysia https://opiej.mpob.gov.my/the-push-and-pull-factors-in-business-a-study-on-independent-oil-palm-smallholders-in-selected-states-in-malaysia/ Wed, 29 Aug 2018 00:18:47 +0000 https://opiej.mpob.gov.my/?p=381 Read more]]> The oil palm industry faces market volatility and economic oppression. This has seriously affected the income of oil palm smallholders. One way to increase their income is to get them involved in business. However, the involvement of oil palm smallholders in business is not influenced by economic factors alone, but also by push and pull factors. Therefore, a study was conducted on 178 independent smallholders who are currently doing business in Johor, Selangor, Perak and Sarawak, Malaysia. Analyses of the data were done by using the Method Structural Equation Model (SEM) with the SmartPLS software. The study found that overall the respondents engaged in the business because of several push and pull factors. The respondents expressed that ‘risk/challenges management’ was the most important push factor in business. This was followed by ‘leadership skills’, ‘business opportunity’, ‘family encouragement’, ‘knowledge and skills’ and ‘income level’. An important pull factor for the respondents was the ‘opportunity to attend training’, followed by ‘infrastructure facilities’ and ‘finance’.

Keywords: independent oil palm smallholders, business involvement, push and pull factors in business, entrepreneurship

]]> Consumer Perceptions on the Implementation of Biodiesel in the Transport Sector: A Case in the Central Region of Peninsular Malaysia https://opiej.mpob.gov.my/consumer-perceptions-on-the-implementation-of-biodiesel-in-the-transport-sector-a-case-in-the-central-region-of-peninsular-malaysia/ Wed, 29 Aug 2018 00:17:30 +0000 https://opiej.mpob.gov.my/?p=379 Read more]]> This study analysed the level of awareness of diesel and petrol vehicle users in the central region of Peninsular Malaysia on biodiesel and the currently running biodiesel programme for the transport sector, i.e. B7. In addition, the study also examines consumer perception on the implementation of biodiesel use in the transport sector. The results suggest that the level of awareness on biodiesel and the biodiesel programne was very low. Consequently, many of the respondents were neutral in expecting any advantage from B10 on vehicle performance.

Keywords: central region, B7, B10, transport sector, biodiesel

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