https://opiej.mpob.gov.my Oil Palm Industry Economic Journal Mon, 16 Mar 2026 06:08:40 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://opiej.mpob.gov.my/economic-sustainability-in-the-palm-oil-sector-a-bibliometric-review-using-r-studio/ Mon, 09 Mar 2026 05:31:49 +0000 https://opiej.mpob.gov.my/?p=2575 Read more]]> The growth of the global palm oil industry with the call to balance its significant economic contributions with pressing sustainability challenges has been a subject of debate for decades. In line with this pressing need, this study aims to examine the evolution of academic publications on economic sustainability in the palm oil industry through a bibliometric review of scholarly literature spanning from 1996 to 2025. The research analyses publication trends across different dimensions, including authorship, institutional affiliations, geographical distribution, and evolving topic trends. By assessing the trajectory of academic discourse, this study identifies key shifts from production-focused studies to research emphasising environmental impact mitigation, policy frameworks, and sustainable certification mechanisms. Findings from the review suggest that interdisciplinary collaborations have increased over time, reflecting a growing recognition of the complex interplay between economic growth and sustainability in the palm oil sector. In addition, this review highlights gaps in existing research, particularly concerning smallholder economic resilience and policy harmonisation. The study contributes to the academic and policy discourse by providing insights into future research directions that can support sustainable industry practices.

]]> https://opiej.mpob.gov.my/quantile-insights-into-the-role-of-fertiliser-harvesters-and-estate-size-in-shaping-oil-palm-fresh-fruit-bunches-ffb-yield/ Tue, 07 Oct 2025 08:00:12 +0000 https://opiej.mpob.gov.my/?p=2546 Read more]]> This study investigates the impact of fertiliser application, harvester availability and estate size on oil palm fresh fruit bunches (FFB) yield using quantile regression for Malaysian estates. Unlike traditional meanbased approaches, quantile regression allows for a deeper understanding of how these factors influence estates at different yield levels. The results reveal that fertiliser has a strong, positive effect across all yield quantiles, with diminishing returns at higher yield levels. Harvester availability plays a significant role, particularly for medium-yield estates. Estate size exhibits varying effects whereby small and medium-small estates underperform at lower quantiles and show modest improvements at higher quantiles. However, these upward shifts are only weakly significant and have limited effect sizes. These insights suggest while smaller estates may benefit from targeted support, the magnitude of their advantage at higher yield levels is modest. The findings contribute to optimising resource allocation and enhancing sustainability in Malaysia’s palm oil industry.

]]> https://opiej.mpob.gov.my/united-states-tariff-shockwaves-malaysias-palm-oil-in-the-crosshairs/ Tue, 23 Sep 2025 07:50:30 +0000 https://opiej.mpob.gov.my/?p=2489 Read more]]> This article presents an analysis on the implications of the 2025 United States (U.S.) tariffs policy introduced under President Donald Trump administration on Malaysian palm oil industry (when this article was written). It examines the multifaceted impact of the early slapped of 24% tariff by the U.S. before it was escalated to 25%, then reduced to 19% on August 2025 (after went through delicate trade negotiations and bargaining) necessitates discussion on the Malaysian exports through economic, political, and strategic lenses. The analysis reflects on the broader context of global trade tensions and protectionist trends, while also evaluating Malaysia’s policy responses and adaptive strategies. Drawing on current developments and historical parallels, the article offers a forward-looking perspective on the long-term viability and resilience of Malaysia’s palm oil industry in an increasingly uncertain trade environment.

]]> https://opiej.mpob.gov.my/from-local-to-global-examining-the-impact-of-pre-and-postinternationalisation-strategy-by-bursa-malaysia-of-global-oil-markets-to-the-futures-crude-palm-oil/ Tue, 08 Jul 2025 00:54:18 +0000 https://opiej.mpob.gov.my/?p=2466 Read more]]> This study investigates the level of cointegration between futures crude palm oil (FCPO) and competitor oils during the pre- and post-internationalisation strategy implemented by Bursa Malaysia Derivatives Berhad (BMDB). The Autoregressive Distributed Lags (ARDL) model is employed to analyse cointegration and causality among these variables using weekly data from January 1980 to December 2022. The empirical results show a reduction in the level of cointegration by 0.017% with soybean futures, 0.179% with exchange rates and no cointegration with Brent crude oil futures after implementing BMDB’s international strategy. The results from this study contribute to more robust financial models for the FCPO market and provide empirical input to authorities on how policy or strategy shapes the relationship between FCPO and competitor oils so that BMDB can maintain FCPO status as a global index reference.

]]> https://opiej.mpob.gov.my/challenges-and-opportunities-for-intensifying-oil-palm-cultivation-in-west-central-africa-using-a-case-study-of-ghana/ Fri, 02 May 2025 08:22:16 +0000 https://opiej.mpob.gov.my/?p=2453 Read more]]> The global demand for palm oil, an economically important product in tropical regions, continues to rise rapidly. To meet this demand, there is a focus on expanding oil palm production, particularly in Latin America and Africa. However, in West and Central Africa, biophysical constraints, such as sub-optimal climate conditions and poor management practices, limit yields. Socioeconomic issues, including a lack of skilled labour and disorganised industry expansion, further hinder production. Opportunities for intensification are thus considerable in West Africa, where fresh fruit bunch (FFB) yields are ~56% lower than those of major producers in Southeast Asia and ~47% lower than in Latin America. This study reviewed opportunities for yield intensification in oil palm cultivation, using Ghana as a case study, while considering both agronomic and socio-economic factors. Findings suggest that palm oil production increases can arise from increasing the fruit supply from smallholders, who are the dominant producers in Ghana (~95%) and promoting specific practices for yield intensification, such as improved harvesting and nutrient management. Increasing average yields to a biophysically achievable 21 t ha–1 could significantly boost national FFB production, potentially eliminating the need for additional land, and meeting Ghana’s current annual demand for crude palm oil without expansion. Yield intensification strategies could therefore underpin effective strategies for agricultural intensification in Ghana and the broader West-Central Africa region. Achieving this requires collaborative efforts between industry stakeholders, including plantations, smallholders and government intervention.

]]> https://opiej.mpob.gov.my/malaysian-palm-oil-price-prediction-using-arima-arch-model/ Tue, 04 Mar 2025 05:55:33 +0000 https://opiej.mpob.gov.my/?p=2431 Read more]]> Palm oil is one of Malaysia’s primary industries. In 2022, Malaysia was responsible for 25.14% of global palm oil production, totalling 18.55 million tonnes, and 31.65% of worldwide palm oil exports, amounting to 15.71 million tonnes (MPOB, 2024; Trend Economy, 2024). This article presents a study for Malaysian palm oil price forecasting using the traditional time series model, with three objectives, to identify the behaviour of palm oil prices in Malaysia, to determine the best model for predicting palm oil prices using the ARIMA model, and to perform a short-term forecast of the future palm oil price in Malaysia. The analysis was conducted using monthly Malaysian palm oil prices for a period of 10 years, 2013–2023. EViews software was used to run the data analysis. It is found that ARIMA (1,1,4) – ARCH (1) model is the most parsimonious model for forecasting the crude palm oil prices in Malaysia. Overall, predicting the monthly price of Malaysian palm oil provides valuable insights that support decision-making across the entire palm oil value chain, from producers and traders to
policymakers and investors.

]]> https://opiej.mpob.gov.my/comparison-of-2023-production-costs-between-hybrid-oxg-and-elaeis-guineensis-crops-in-colombia/ Fri, 20 Dec 2024 10:42:29 +0000 https://opiej.mpob.gov.my/?p=2400 Read more]]> The area planted with Elaeis oleifera x Elaeis guineensis hybrids (OxG hybrids) crops in Colombia is on the rise and nowadays more than 90 000 ha (10% of the cultivated area in Colombia) are currently planted with them. Today, after 15 years of commercial operations of OxG hybrids, there is a set of management practices that includes artificial pollination, harvesting of fresh fruit bunches (FFB) by implementing appropriate ripeness criteria for each type of OxG cultivar, adjustments to OxG nutrition programs and adjustments to the oil extraction process from OxG FFB. This set of OxG crop management practices is the result of years of research by CENIPALMA and, technological adoption by Colombian companies that have pioneered the planting of OxG hybrid cultivars. The adoption of OxG crop management practices has led to the production of an average of 30 t FFB/ha in mature crops, which is higher than FFB production obtained in E. guineensis crops. The results of this analysis allow us to conclude that the OxG hybrid business is currently viable with a unit cost of production of USD102.22/t of FFB [and USD507.90/t of crude palm oil (CPO)], very close to that obtained in E. guineensis cultivars of USD107.65/t of FFB (and USD510.03/t of CPO). Our analyses also yield that cropping OxG hybrid oil palms is a better economic alternative than cropping E. guineensis oil palms. Presenting results on the estimation of unit costs for OxG crops is relevant because the palm oil agri-business from OxG hybrids is a relatively recent development.

]]> https://opiej.mpob.gov.my/palm-oil-price-review-and-outlook-2024/ Mon, 11 Nov 2024 04:18:00 +0000 https://opiej.mpob.gov.my/?p=2378 Read more]]> This article reviews the palm price movement in the first four months of this year and presents a price outlook for the rest of the year. This article identifies and explores the underlying price drivers of CPO futures and cash prices by exploring related palm fundamentals and relevant external variables. Crude palm oil (CPO) futures on Bursa Malaysia have been on a rising trajectory since the start of this year rallying from RM3661 (USD774)/t in January, accelerating to a peak of RM4407 (USD932)/t at the beginning of April, or up RM746 (USD158) or 20% in the three months. Prices took a turn after testing the high of RM4407 (USD932)/t, decelerating rapidly to RM3818 (USD808)/t towards the end of April or down by RM492 (USD104) or 11% in the space of four weeks. Overall year-to-date ending 30 April active month CPO futures averaged RM3989 (USD844)/t or just RM76 (USD16) or 2% higher than the same period last year reflecting a steady to marginal increase in prices compared to last year. This article will address the main factors in understanding the dynamics of CPO futures pricing behaviour by discussing the main fundamental price drivers for the rest of the remaining part of this year.

]]> https://opiej.mpob.gov.my/malaysian-palm-oil-industry-perspective-in-pre-and-post-african-continental-free-trade-agreement/ Fri, 06 Sep 2024 03:49:00 +0000 https://opiej.mpob.gov.my/?p=2339 Read more]]> The Malaysian Palm Oil (MPO) industry is important in the global oils and fats market, significantly contributing to economic value in Africa. As the African trade bloc represents the second largest export market for this industry, such implementation of the African Continental Free Trade Agreement (AfCFTA), could have profound influence on Malaysia’s market position. This study explores the potential effects of AfCFTA on the MPO industry within African trade blocs using a mixed-method approach. Quantitative methods in this study include the use of paired sample t-tests to analyse differences in the MPO industry’s metrics before and after the implementation of the agreement, assessing how AfCFTA influence the trade dynamics for MPO products. Qualitative approaches are utilised to investigate shifts in market access, tariff regimes, and non-tariff measures (NTMs), providing a comprehensive view of the trade environment. The results revealed that AfCFTA and associated trade liberalisation have not significantly enhanced the trade performance of Malaysian Palm Products (MPPs) exports. These findings suggest that external factors may play a critical role in shaping export dynamics, indicating the need for further research to fully understand AfCFTA’s effectiveness within the palm oil sector. The findings offer deeper understanding of the complex interactions between trade agreements and the MPO industry, delivering actionable recommendations that could enhance trade relations between Malaysia and African countries.

]]> https://opiej.mpob.gov.my/opinion-paper-oil-palm-and-islamic-finance-as-the-two-interconnected-industries/ Mon, 29 Jul 2024 02:59:28 +0000 https://opiej.mpob.gov.my/?p=2312 Read more]]> This paper investigates the evolving dynamics of the oil palm industry and its intricate implications for Islamic finance, particularly in the context of Malaysia where both sectors hold significant economic importance. Given the pivotal role of oil palm as a key commodity in Islamic financial instruments, notably in tawarruq (commodity trading), understanding the interplay between these two industries is crucial for charting a strategic path forward for both. Building upon prior research that has explored the oil palm-Islamic finance nexus, this study delves deeper into the specific Malaysian context, where oil palm reigns as the most frequently utilised commodity by Islamic financial institutions. By analysing the latest developments, we aim to uncover not only the inherent risks but also the untapped potential that oil palm presents for the Islamic finance sector. Effectively managing the risks associated with oil palm production and trade, while simultaneously harnessing its potential benefits, can significantly enhance the growth trajectory of both the oil palm industry and the Islamic finance sector in Malaysia. This, in turn, could have far-reaching implications for the overall economic development of the country. The insights gleaned from this research will be invaluable for policymakers, financial institutions, and industry stakeholders alike, enabling them to make informed decisions that foster sustainable growth and resilience in these interconnected sectors.

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