Prospect of Palm Oil Prices
The Malaysian palm oil industry has played an important role in the Malaysian economy. The planted area had expanded phenomenally from a mere 55,000 ha in 1960 to 5.849 million hectares in 2018. In tandem with the area expansion, the production of palm oil also grew significantly from less than 100,000 tonnes in 1960 to about 19.516 million tonnes in 2018. This rapid expansion, especially in the 1960s, was encouraged by the diversification strategy of the Malaysian government, which recognized palm oil potential as a complementary crop to rubber.
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