Palm oil has truly been a “golden crop” for Malaysia. The industry has been one of the primary contributors toward economic development in the country. It’s credited with lifting families out of poverty and developing roads, schools and healthcare facilities throughout local communities. All while wildlife is carefully protected and natural rainforests conserved. The Malaysian Sustainable Palm Oil (MSPO) certification program ensures quality and high standards that will keep the industry and Malaysia’s people thriving into the future.   

Malaysia has felt numerous benefits of oil palm planting since it first began. 

Economy

Palm oil is a major contributor to Malaysia’s economy and is a vital source of the country’s export earnings. In 2018, around RM 65 billion worth of palm oil and palm products were exported worldwide. 

Employment 

More than 2 million Malaysians rely on the palm oil industry, which has reduced poverty in the country. It provides upward social mobility to independent farmers and improves Malaysians’ standard of living through higher gross national income and access to better education. The industry has created organizations to support family farmers (smallholders) who cultivate much of Malaysia’s palm-planted lands. 

Poverty eradication 

The Federal Land Development Authority (FELDA) was established to generate greater opportunities to group landless farmers, and provide land for rubber and oil palm cultivation. Its success in raising rural income in Malaysia has made FELDA a World Bank case study for possible duplication in other countries. 

The environment and biodiversity 

The MSPO certification program addresses the environmental, social and economic aspects of palm oil production. The palm oil industry follows Good Agricultural Practices that ensure their activities are carried out sustainably and play a responsible role in reducing their environmental footprint. The establishment of the Malaysian Palm Oil Wildlife Conservation Fund reinforces the industry’s commitment toward conservation efforts on biodiversity and wildlife. Malaysia is the world’s leader in orangutan conservation, with nearly 13,000 orangutans living in protected forests. The Malaysian palm oil industry has helped establish sanctuaries and rescues in all of its agricultural regions.  

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