Malaysian Palm Oil

A sector on the forefront of sustainability and innovation, palm oil is driving the Malaysian economy, supporting small farmers, uplifting rural communities and helping to feed the world.

The Palm Brief

Society & Economics

The palm oil sector is a major contributor to the Malaysian economy and is a key export to markets across the globe.

8.5%

of the entire Malaysian GDP is made up of the palm oil sector

40%

of all Malaysian palm oil is produced by small farmers

1.4

million Malaysians employed across the palm oil supply chain

200

markets across the globe where palm oil is sold

#2

largest producer of palm oil in the world

7.5%

of all Malaysia’s exports are from the palm oil sector

>1M

Malaysians have been lifted out of poverty by palm oil farming

19M

tonnes of palm oil are produced each year

>450K

small farmers across the country are involved in palm oil farming

The Value Chain

Sustainability

The UN Sustainable Development Goals (SDGs) are the global consensus on sustainability. Malaysian palm oil contributes significantly to the SDGs. It reduces poverty and improves livelihoods, supports the Malaysian economy, and reduces land use for vegetable oil crops across the globe. 

Certification

Malaysian palm oil is certified under a mandatory national standard – MSPO – that is the largest vegetable oil certification system in the world. MSPO certifies that farmers are producing palm oil sustainably, ensuring against deforestation and protecting labour rights.

Innovation

Malaysian palm oil leads the world by introducing more efficient harvesting and processing techniques that improve palm oil production, reduce waste and lower pollution.

Labour

Malaysia is leading the palm oil industry to improve labour practices and treatment of workers in line with international norms on worker rights and eradicating child labour and forced labour.

Trade

Malaysia supports open trade in vegetable oils to ensure that the world’s population has access to cheap, healthy and readily available oil for cooking and household needs.

People

Palm oil supports millions of livelihoods and families across Malaysia, and has brought an entire generation out of poverty, giving them rights to land and new economic opportunities.

Conservation

Malaysia works with international and local conservation groups across the country and supports programmes to ensure its populations of orangutans, tigers and other wildlife will be there for future generations.

Traceability

Malaysia’s national palm oil certification scheme – MSPO – has one of the most robust and effective traceability mechanisms in the agriculture industry, MSPO Trace.

Health

Palm oil is used as an ingredient in bread, baked goods, cereals, margarine, chocolate and many other everyday products – and all of it is healthy and free of trans fats. 

Conservation & Sustainability

Malaysia and the palm oil sector contribute significantly to domestic & international sustainability efforts and continue to work to protect forests and wildlife.

60%

of Malaysia is covered by forests set aside for protection, conservation and recreational use

5.7M

hectares of land are certified by MSPO, the largest certification scheme in the world

166K

new hectares of forest area have been added in the last decade

2.91

tonnes of palm oil are produced per hectare, up to 20x more than any other vegetable oil

8%

increase in the carbon stock of Malaysia’s forests over the last decade

96%

of Malaysia’s oil palm plantations are certified by MSPO