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The Oil Palm

Where is it grown?

Oil palm is cultivated in 43 countries throughout the World

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The Oil Palm

The Orang-utan

The Sabah and Sarawak State governments have identified a number of forest areas known to contain higher populations of orang-utans as wildlife sanctuaries, national parks or forest preserves. Ulu Segama – Malua Forest Reserve in Sabah, spanning over 0.236 million hectare, has been shown to be inhabited by about 6,000 – 7,000 orang-utans, the most populated orang-utan area in Sabah. The Lanjak-Entimau Wildlife Sanctuary in Sarawak has been shown to … Read More

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The Oil Palm

Economic Contribution

The Malaysian palm oil industry is significant contributor to Malaysia’s overall economy, providing both employment and income from exports. In 2011, the sector was the fourth largest contributor to Malaysia’s economy, accounting for RM 53 billion (USD 16.8 billion) of Malaysia’s Gross National Income (GNI).

The Malaysian palm oil industry directly employs more than 600,000 people, including both high-skilled and low-skilled labor. Research and innovation are adding new jobs to
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The Oil Palm

History of the Industry

The palm oil industry in Malaysia has evolved dramatically since the first commercial planting took place in Tennamaran Estate in Selangor in 1917, laying the foundations for the industry in Malaysia. The cultivation of oil palm increased at a fast pace in early 1960s under the government’s agricultural diversification programme, which was introduced to reduce the country’s economic dependence on rubber and tin.

In the 1960s, the government introduced land … Read More

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The Oil Palm

History and Origin

The oil palm (Elaeis guineensis) originated from West Africa, where evidence of its use as a staple food crop dates as far back as 5,000 years. There is even evidence in Egyptian tombs of people being buried with casks of palm oil, reflecting the high societal value attributed to the product. Needless to say, with origins in West Africa and evidence of consumption in Egypt, palm oil can be considered … Read More

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The Oil Palm

Bio-energy

The palm oil industry is a critical source of energy, both for transportation as well as electricity generation. And it is not simply relying on palm oil to produce energy, but rather, on a number of by-products.

Palm Oil Mill Effluent (POME) of which more than 60 million tonnes is produced every year, is both a waste and a significant energy source. Through the implementation by methane capture, whereby POME … Read More

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The Oil Palm

The Sustainable Oil

Land Use Policy

Malaysia observes strict regulations governing expansion of oil palms, with agriculture expansion limited to land zoned for agriculture. 23.95 percent of Malaysia’s land bank is zoned for agriculture development. In contrast, more than 55 percent of Malaysia’s land is identified for permanent conservation. This balance ensures that Malaysia’s economic development does not come at the expense of the environment and the nation’s biodiversity. The oil palm’s high … Read More

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The Oil Palm

The Future of Palm Oil

On September 21, 2010, the Government of Malaysia launched The Economic Transformation Programme (ETP), a comprehensive programme to assist Malaysia in achieving its goal of achieving high-income status by 2020. A number of industrial and economic sectors were identified under the ETP as National Key Economic Areas (NKEA), through which Malaysia will achieve prosperity and economic growth. The palm oil industry is one of those NKEAs.

In recognition of the … Read More

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The Oil Palm

Small Farmers

Malaysia’s small farmers are a robust and diverse group of individuals contributing to Malaysia’s national prosperity and cultural identity.  With almost 40 per cent of the oil palms cultivated by small farmers, Malaysia’s 300,000 + small farmers cultivating plantations between 4 and 40 hectares in size are instrumental in producing over 18 million tonnes of palm oil every year.

Malaysia’s small farmers are not the biggest players in the palm … Read More

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The Oil Palm

Conservation Commitment

The palm oil industry adopts and implements sustainable and good agricultural practices, yet is has been accused of unsustainable practices including the destruction of rainforests and wildlife habitat, particularly the orang utan. These accusations driven by campaigns, primarily led by the European NGOs have resulted in misunderstanding among some traditional palm oil end users who have in turn taken drastic steps to reduce their palm oil usage in consumer products. … Read More