Industry Overview of Palm Oil Industry in Malaysia
The palm oil industry in Malaysia currently dominates the global market for palm oil production and exports. According to industry experts on palm oil industry overview, palm oil production in Malaysia holds almost 40% share of the palm oil production globally. Furthermore, the Malaysian palm oil industry is one of the largest exporters of palm oil in Malaysia to account for more than 42% of export of palm oil across the world. The palm oil industry in Malaysia plays a crucial role in meeting the global demand for palm oil. The Malaysian palm oil industry is undergoing many structural changes and new developments with setting up of new palm oil fields and palm oil mills. Palm oil in Malaysia is a very significant sector behind the economic growth of Malaysia.
Palm oil in Malaysia is made from the palm fruit fresh and the kernel as well which is known as palm kernel oil. Both varieties, palm kernel oil and palm oil in Malaysia find increased application in food products all over the globe as oils and fats. In 2017, the palm oil industry in Malaysia produced over 17 million tons palm oil and produced over 2 million tons palm kernel oil. The palm oil production in Malaysia is spread over more than 4 million hectares of plantation land in the country.
Growth Prospects of Palm Oil Industry in Malaysia
The palm oil industry in Malaysia has witnessed rapid growth in the past few decades with surging palm oil production in Malaysia and rising exports of palm oil in Malaysia. A critical palm oil industry overview by the Malaysian Palm Oil Board suggests that Malaysian palm oil industry has emerged one of the leading industries in the economy of Malaysia. Palm oil production in Malaysia has contributed immensely to the country’s GDP and brought in huge amounts of profitable foreign currency.
Palm oil in Malaysia is a type of a vegetable oil made from the fleshy part of the palm fruit and palm oil kernel is extracted from the kernel of palm fruit. Palm oil is widely used in food products (around 70% usage) like cooking oil and table margarine and palm oil kernel has various industrial applications like biofuel feedstock, FMCG products like soaps, cosmetics, detergents, and candles.
Top 10 Palm Oil Plantation in Malaysia
Malaysia is the world’s second-largest palm oil producing country. The palm oil plantation is Malaysia is spread throughout the country. Here is the list of the top palm oil plantation in Malaysia.
- Boustead Plantations Berhad
- Glenealy Plantations
- Sime Darby Plantation
- United Plantation
- Keresa Plantations
- KLK Plantations
- TDM Berhad Plantations
- IJM Plantations Berhad
- Tradewinds Plantation Berhad
- TH Plantations
Future Direction of the Palm Oil Industry in Malaysia
Malaysia and Indonesia are the top two producers of palm oil, constitute almost four-fifths of the global production of palm oil. It is forecasted that palm oil production in Malaysia will scale new highs of out as the palm oil industry in Malaysia recovers fully from the after-effects of El Nino in 2017. As a result, the Malaysian Palm Oil Board has predicted a fall in prices of palm oil by around 8 to 10 % in 2018 compared to previous year. Palm oil production in Malaysia is forecasted to touch 20 million metric tons in 2018, up by roughly 15% from previous year.
The biodiesel mandate in Malaysia states a minimum of 7% in the transportation industry, which is also likely to push the demand for palm oil in Malaysia as it’s an integral component of the biofuel industry. The overall scenario of the palm oil industry in Malaysia reveals that there is a high amount of stock inventory in the Malaysian palm oil industry to meet the growing demand for palm oil in Malaysia. It is further predicted that the demand for palm oil production in Malaysia will grow by 15% in 2018 in the global palm oil industry overview.