Citation
Sabri Ahmad, . (2005) Propelling the Malaysian palm oil industry towards. [Proceedings Paper]
Abstract
The palm oil industry is one of the greatest success stories of the Malaysian economy. From its humble origins as an ornamental plant in the late 1800s, the oil palm is now cultivated over 3.9 million ha in 2004 and contributes to 2.9% of the national GPD. However, as the industry matures, competitions, particularly from other low-cost producers are mounting. On this score, Malaysia faces some disadvantages, the main of which being limited land for expansion and shortage of labour. It is here that the industry will have to be innovative and rely on non-traditional avenues to increase efficiency and growth. For the former, consolidation of players and off-shore investments are expected to bring about benefits from economies of scale and capturing and gaining of market advantage respectively. For the latter, areas of emphasis would be to increase productivity through use of superior planting materials, management and husbandry practices. Product differentiation through customization, food safety, quality and sustainability would be the other elements for competitive edge. Research and development is recognized to be an important driver towards these goals. As sophistication of customers and competitors increase, all players in the Malaysian palm oil production chain must collaborate to meet the challenges. The government and private sector players must work together to develop legislature, tax structures, infrastructure and training facilities to enhance organic growth. Such collaboration is also needed to meet the challenges of international barriers to trade, acceptability and reputation of Malaysian palm oil products. Details of directions and strategies towards the above goals together with examples drawn from the experiences at Golden Hope Plantations Berhad are detailed in this paper.
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Abstract
The palm oil industry is one of the greatest success stories of the Malaysian economy. From its humble origins as an ornamental plant in the late 1800s, the oil palm is now cultivated over 3.9 million ha in 2004 and contributes to 2.9% of the national GPD. However, as the industry matures, competitions, particularly from other low-cost producers are mounting. On this score, Malaysia faces some disadvantages, the main of which being limited land for expansion and shortage of labour. It is here that the industry will have to be innovative and rely on non-traditional avenues to increase efficiency and growth. For the former, consolidation of players and off-shore investments are expected to bring about benefits from economies of scale and capturing and gaining of market advantage respectively. For the latter, areas of emphasis would be to increase productivity through use of superior planting materials, management and husbandry practices. Product differentiation through customization, food safety, quality and sustainability would be the other elements for competitive edge. Research and development is recognized to be an important driver towards these goals. As sophistication of customers and competitors increase, all players in the Malaysian palm oil production chain must collaborate to meet the challenges. The government and private sector players must work together to develop legislature, tax structures, infrastructure and training facilities to enhance organic growth. Such collaboration is also needed to meet the challenges of international barriers to trade, acceptability and reputation of Malaysian palm oil products. Details of directions and strategies towards the above goals together with examples drawn from the experiences at Golden Hope Plantations Berhad are detailed in this paper.
Additional Metadata
| Item Type: | Proceedings Paper |
|---|---|
| Additional Information: | Available at Perpustakaan Sultan Abdul Samad, Universiti Putra Malaysia, 43400 UPM Serdang, Selangor, Malaysia. TP684 P3I61 2005 Call Number |
| AGROVOC Term: | palm oils |
| AGROVOC Term: | agro-industrial sector |
| AGROVOC Term: | industrial development |
| AGROVOC Term: | innovation adoption |
| AGROVOC Term: | government agencies |
| AGROVOC Term: | economic growth |
| AGROVOC Term: | sustainability |
| Geographical Term: | Malaysia |
| Depositing User: | Nor Hasnita Abdul Samat |
| Date Deposited: | 04 Sep 2025 03:15 |
| Last Modified: | 04 Sep 2025 03:15 |
| URI: | http://webagris.upm.edu.my/id/eprint/1067 |
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