The Oil Palm was first introduced in Malaysia in the early 1870s, as an ornamental plant. In 1917, the first commercial planting of Oil Palm took place in Tennamaram, Selangor, laying the foundation for the vast oil palm plantations and palm oil industry in Malaysia. Malaysia accounted for 24.5% of world palm oil production and 32.4% of world exports in the year 2022.
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. Today, 5.8 million hectares of land in Malaysia are under oil palm cultivation; producing 18.45 million tonnes of palm oil and about 2 tonnes of palm kernel oil. The industry provides employment to more than half a million people and livelihood to an estimated one million people.
With the increasing demand for crude palm oil globally over the years, Malaysia will remain one of the major palm oil producers in the world, taking into consideration of its suitable climate and available land bank. Over the years, the cost of production gradually increases, but the efficiency of oil production remains stagnant. Various measures have been taken to address the rising cost of production. One of the measures is the improvement of the energy consumption in the palm oil mill.
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