News

HomeMalaysiaIndustry Overview

Industry Overview: Malaysia Palm Oil Industry

Malaysia's position as the world's leading Palm Oil-producing country has allowed the industry to flourish in the way it has never been before. The Malaysian economy is hugely dependent on revenue from palm oil, accounting for eight per cent or almost RM53 billion of the nation's Gross National Income. Currently Malaysia accounts for 39 % of world palm oil production and 44% of world exports. If taken into account of other oils & fats produced in the country, Malaysia accounts for 12% and 27% of the world's total production and exports of oils and fats. Being one of the biggest producers and exporters of palm oil and palm oil products, Malaysia has an important role to play in fulfilling the growing global need for oils and fats sustainably.

The palm oil industry has shown stellar performance with record highs in key performance indicators, namely price of palm oil products, crude palm oil production, imports, exports volume as well as revenue. Average annual price of palm oil for the year breached the RM3,000 mark to register at RM3,219, while export revenue of palm products reached a record high of RM80.4 billion, an increase of 34.5% against RM59.8 billion achieved in 2010.
 
In 2011, Malaysia's total approved investment amounted to RM56Bn (Domestic investments RM21.9Bn, Foreign Investment RM34.1Bn). In the palm oil sector, in 2011, a total 52 projects with investments amounting to RM3Bn billion were approved. Foreign investments and domestic investments each totaled RM1.5Bn. Oleo Chemicals registered the highest investments with RM1.4Bn, followed by the palm oil and palm kernel oil sub-sector (RM1.1Bn), products from Palm Biomass (RM396.7Mn).
 
As renewable energy has been identified globally as a key driver to achieve economic growth, Malaysia is also taking all necessary steps in order to ensure minimal environmental harm. The Malaysian palm oil industry, with 4.69 million hectares of planted land has a tremendous opportunity in supplying renewable energy in the form of biomass-based bio energy and biogas from methane capture of palm oil mill effluent (POME). It is estimated that these palm based materials could generate up to 1260 MW of energy. This amounts to nearly 10% of the maximum energy demand of electricity in Malaysia. Therefore, oil palm-based biomass can be expected to play a prominent role in the future as the demand for renewable energy is expected to increase rapidly. 
 
(Source: Insight Alpha)
 
 
Tags

Oleo Chemicals