A new study done by London-based consulting firm Europe Economics emphasizes palm oil’s global economic benefits. The study, commissioned by the Malaysian Palm Oil Council (MPOC), analyzed palm oil’s land-efficiency and cost-effectiveness to measure its positive impacts to other countries.
Palm oil imports add enormous benefits to the world economy
The study found that palm oil imports directly affect both the gross domestic product (GDP) and job growth of individual countries such as the United States. A few key statistics about palm oil imports corroborate this:
- The United States gains $8.76 billion of GDP growth
- The U.S. gains $860 million in tax revenues
- Palm oil imports also help create 62,000 jobs domestically
Those numbers are just a fraction of the growth gained globally:
- Palm oil imports add $39 billion of GDP growth globally
- They help create 2.9 million jobs globally
The study’s results are thrilling
“This is a groundbreaking new study, illustrating palm oil’s role as a provider of economic and social benefits to the global economy,” said MPOC CEO Dr. Yusof Basiron. “Palm oil production brings substantial benefits to the people of Malaysia. It is clear from this new research that palm oil also brings substantial benefits to businesses and consumers in importing countries.”
The Europe Economics study showed that manufacturing, distribution and services sectors benefit most from palm oil imports.
“The success of palm oil as both an essential food source and as a renewable energy demonstrates the value that palm oil provides for producers, manufacturers and consumers around the world,” Basiron said. “The evidence is clear: Palm oil must be recognized and welcomed as a major contributor to jobs and growth, generating billions of dollars in benefits, and creating millions of jobs.”
Malaysian palm oil’s environmental impact is helping the world
Malaysia is the second-largest palm oil producer. MPOC makes sure this valuable export is well represented in the interest of palm oil growers and small farmers in Malaysia. These small farmers own or farm 40 percent of all oil palm plantations.
Malaysian palm oil has also helped its own country’s economy. Poverty rates are down to less than 5 percent. More than 570,000 people have jobs in the palm oil business, and another 290,000 are employed downstream.
Palm oil is sustainably produced
Malaysia does not deforest or destroy biodiversity to manufacture palm oil. The country is committed to protecting more than half of its land as forest. Malaysia uses a balanced policy that allows for both land development for agriculture and forest protection. The United Nations and the World Bank has recognized these efforts. These commitments also make Malaysia a world leader in forest protection.