Celebrating Malaysian palm oil
June, 2017 in Special Focus, Issue 2 - 2017
Malaysia’s oil palm sector was identified as a National Key Economic Area (NKEA) under the Economic Transformation Programme.
The combined oil palm and rubber sector was designated as one of 12 NKEAs in the Economic Transformation Programme, aimed at achieving high-income nation status by 2020.
Accounting for more than 5% of annual exports, the palm oil sector is a major contributor to the economy. It has moved up the value chain to introduce high-end products to meet food and health needs, among others. Efforts are also continuing to boost the productivity of smallholdings, because there is limited agricultural land for expansion of cultivation.
This two-pronged approach toward a more efficient palm oil supply chain targets the generation of RM178 billion in Gross National Income and 41,600 new jobs by 2020 through the implementation of eight Entry Point Projects. Currently, the palm oil industry is the second-biggest provider of jobs, employing more than 440,000 people.
Growth is projected to strengthen, powered by business opportunities in upstream expansion; development of existing downstream activities; and biodiesel production worth RM57.6 billion by 2020. The challenges to be addressed include mechanisation to reduce dependence on foreign labour, improved productivity, and the creation of value-added products.
