COMPARATIVE ADVANTAGE OF MALAYSIAN PALM OIL

BY # SITI NUR DALILA, RAJA NURAIN NAILAH AND SITI MANISAH

The palm oil industry in Malaysia is the most important industry and has big impact on national income. As the largest exporters of palm oil, world markets depending on Malaysia for Palm oil demand. There are also government agencies have helped oil palm industry expandable, for example Federal Land Development Authority (FELDA), Palm Oil Research Institute of Malaysia (PORIM), Malaysian Palm Oil Board (MPOB).

Over the years, oil palm cultivation has increased with the growing number of oil palm plantations and as a result 18.9 million tonnes of palm oil has been produced in 2011. Meanwhile, China is the major importing countries of crude palm oil in Malaysia. There are 3 main ingredient produced from oil palm fruit processing, namely palm oil seed, seed oil palm oil, crude palm oil.

Industrial products palm downstream value added will be processed and exported for high returns. Cooperation and understanding in the trade point between palm oil producing countries need to have in order to protect the country's palm oil industry, respectively. Malaysia successfully designing innovation products high quality and comparable to other products available in the market such as oleochemical products, nutraceuticals, pharmaceuticals, cosmetics, detergents, cooking oil, and food products.

But there are challenges for Malaysia when the accused was deforestation to grow oil palm, and yet the situation is not the case and Malaysia still have high forest coverage and wakes up firmly. Furthermore, the Union of American Soybeans also claimed the so-called palm oil is not suitable for human consumption, for causing cancer. Palm oil have competition with rival because its production to overcome free of genetically modified organisms (GMO), while non-created fat trans, and thus are healthier options for users.

In conclusion, the palm oil industry was a success for Malaysia when it is the most important source of income in the country. Studies activities and research (R&D) should be upgraded to produce the new findings in the field, ensure the quality of the oil palm is at the highest level and to diversify the use of Palm itself. This in turn will ensure our country remains a major producer of palm oil in the world.