Malaysia has substantial agricultural exports, the chief among which is palm oil. This product brings greater economic benefits to the country than either rubber or timber, and will do so for some time to come.
PALM OIL is widely used in the food and cosmetics markets and has more recently been in great demand in the making of bio-fuel. There are many advantages associated with the oil. Cost-wise, of all the edible oils and fats available worldwide, palm oil is said to be the most cost-effective one, producing more oil per hectare planted than other crops. Its cultivation also requires less input of pesticides, fertilisers and fuel per unit of oil produced.
The food industry is amongst palm oil’s largest market while China and India constitute the largest palm oil export market.
The palm oil industry has been in existence in Malaysia for more than a hundred years. The palm originated in West Africa, and it was the British who first brought it to Malaya in the 1870s. The first commercial oil palm estate was set up at Tennamaran Estate, Selangor, in 1917. The crop grew quickly in importance and Malaysian exports of the oil currently exceed 40% of the global total.
