Palm Oil Plantation
Overview of Malaysian Environment
Palm oil production in Malaysia is dominated by major players like FELDA,IOI,SIME DARBY,FELCRA,ASIATIC,KULIN, GOLDEN HOPE and other companies. Together, they own up to 60% of the land that is planted with oil palm trees in Malaysia. 60% of the Malaysia palm oil industry is controlled by large companies, 26% by nationalized entities and the remaining of 14% by the owners of smaller plantations.

Palm Oil Plantation States in Malaysia:
Peninsular Malaysia, Sabah and Sarawak. Sabah has the most highly-centralized oil palm plantation area.

Types of Plantation Estates In Malaysia:
Private oil palm plantations, nationalized oil palm plantations and small oil plantations.

In 2005, there were a total of 3,736 oil palm plantations in Malaysia with a total planted area of 4,0490,000 hectares. It constituted 33.75% of the land that was planted with oil palm trees in the world.

Sabah is the Malaysian state with the largest amount of land planted with oil palm trees—1,200,000 hectares. It is 30% of the total size of all oil palm plantations in Malaysia.

The palm oil production in Malaysia based on the major industries such as FELDA,IOI,SIME DARBY,FELCRA,ASIATIC,KULIN, GOLDEN HOPE and etc that covered total 60% of plantation area in Malaysia. Malaysia palm oil industry formed by 60% of private industry, 26% nationalized industry and the remaining of 14% consisted by palm oil plantation estate owner.

According to the OECD-FAO (2010), demand for vegetable oils (including palm oil) will increase to 184.3 million tones in 2019/2020. In this decade, the rise in annual demand in developing countries like India, China and Brazil will be much higher (3.1%) compared to OECD countries (2.3%) due to demographic developments and improved purchasing power. Initially, palm oil played a key role in the export diversification and poverty alleviation program of the Malaysian government. Malaysia owned 40% of total palm oil production and 45% of total palm oil trading, which equal to 25% of total global oils and oilseeds transaction. Palm oil is Malaysia main currency income that helped Malaysia generated 1,800,000,000 USD from 2008 – 2011. Currently Malaysia palm oil exported to over 150 countries including Turkey, Europe and US.

Malaysia's palm oil sector an important contributor to GDP. In 2010, the export earnings of palm oil and palm-based products surged to RM62.8bil. Plantation Industries and Commodities Minister Tan Sri Bernard Dompok recently said that export earnings could exceed RM65bil in 2011 on the back of rising demand and higher prices. Besides, the supplement of Malaysia’s palm oil hold 11% of the global oils and oilseeds supplement.

Malaysia has adopted an advanced system of forest protection and titling. Over 60% of the Malaysian land mass is protected as forest or forest reserve land. Accordingly, it is illegal to plant an agricultural crop, such as palm oil, on forest or forest reserve classified land. The amount of land zoned for agricultural development is less than 22% of Malaysia’s land mass. It is widely acknowledged that land remaining for agricultural development in Malaysia is approaching the point of depletion.

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