Palm oil remains one of the significant sectors in Malaysia’s economy and has been a critical contributor to the country’s socio-economic development. In 2020, the sector’s contribution to the Malaysian gross domestic product (GDP) was estimated at 3.7% (as of Q3), and the overall export revenue at RM 72.77 billion. Palm oil provides direct and indirect employment to over 3 million Malaysians, out of which nearly 500,000 are smallholders.
Despite being a key agricultural product of the tropical region, the palm oil sector faces many challenges, both short and long term. These challenges have a direct impact on the performance of this sector. If not addressed promptly, they can adversely and permanently affect the livelihood of millions of people associated with this industry in the region.
