🌴 Palm Oil Industry: History, Biology, Uses and Development in Malaysia

1.1 Historical Background

The oil palm (Elaeis guineensis Jacq.) is indigenous to West Africa, where the main palm belt stretches from Sierra Leone, Liberia, Ivory Coast, Ghana, and Cameroon to the equatorial regions of Congo and Zaire .

The crop’s development as a plantation industry began in Southeast Asia. In 1848, four seedlings were introduced from Mauritius and Amsterdam into the Bogor Botanic Gardens, Indonesia. The first commercial estate was later established in Sumatra by Belgian agronomist Adrien Hallet, who had experience in the Belgian Congo .

Malaysia’s development began with Henri Fauconnier, who planted oil palm at Rantau Panjang, Selangor in 1911 and Tennamaram Estate in 1917, marking the start of commercial planting in Malaysia .

Scholars divide Malaysia’s oil palm industry into phases :

• Experimental (late 1800s–1916): Early trials.

• Plantation Development (1917–1960): Tennamaram & expansion.

• Expansion (1960s): Government promoted oil palm to diversify from rubber, following the 1955 World Bank Mission recommendation .

Key institutional driver: FELDA (1956), tasked with rural poverty eradication via plantation schemes.

Later phases:

• 1970s–1990s: Expansion to Sabah & Sarawak.

• 1995 onwards: Offshore expansion, particularly to Indonesia.

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1.2 The Oil Palm Biology

Two major species:

• Elaeis guineensis (African oil palm): Main commercial crop.

• Elaeis oleifera (American oil palm): Lower oil, higher unsaturated fatty acids, used in hybrid breeding .

Pollination

Initially believed to be wind-pollinated, discovery of weevil Elaeidobius kamerunicus in 1982 transformed pollination efficiency .

Yield

• Harvest: 24–30 months after planting.

• 8–15 FFB per palm/year, each 15–25 kg.

• Elite planting: 30–39 t FFB/ha, ~5–8.6 t oil/ha .

• National average (2001): 19.14 t FFB/ha, 3.66 t oil/ha.

Cultivars

• Dura: Thick shell, moderate mesocarp.

• Pisifera: Shell-less, female sterile, used for breeding.

• Tenera (DxP hybrid): Thin shell, high mesocarp; discovered by Beirnaert in 1939 .

Breeding Focus

• Yield, oil quality, slow-height increment.

• Dwarf palms, high unsaturated oil, lauric oil, carotenoid-rich hybrids .

Clonal palm research (1980s): yields ↑ 30–54% .
MPOB also pursues genetic engineering for high oleic acid palms .

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1.3 Characteristics of Palm Oil

Palm oil produces:

• CPO (mesocarp).

• CPKO (kernel).

Fractionation yields olein (liquid) & stearin (solid).

Fatty acid profile:

• Palm oil = balanced saturated/unsaturated.

• Palm kernel oil = high saturated, like coconut oil.

• Soy oil = high unsaturated, less stable at heat .

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1.4 Uses of Palm Oil

Food Uses (~80%)

• Cooking oil, margarine, shortenings, frying fats.

• Ice cream, non-dairy creamers, cocoa butter equivalents .

• New product: Red Palm Olein (high in carotenoids, Vit A precursor) .

Non-Food Uses (~20%)

• Direct: Biofuel, drilling mud, soap, epoxidised palm oil.

• Oleochemicals: Fatty acids, esters, alcohols, nitrogen compounds, glycerol.

  • Candles, detergents, cosmetics, lubricants, biodiesel.

• In 2000, Malaysia produced 1.2 mt oleochemicals (19.7% world total) .

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1.5 Global Production

• 2001: World palm oil = 23.18 mt, 19.8% of oils/fats.

• Doubled 1990–2001.

• Malaysia: 11.8 mt (50.9%); Indonesia: 7.5 mt (32.3%).

• Palm oil = most traded oil, 45.6% of world oils/fats exports .

Projection: By 2020, >40 mt production, with Indonesia overtaking Malaysia .

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1.6 Palm Oil in Malaysia

1.6.1 Planted Area

• 1960: 54,638 ha.

• 2001: 3.49 m ha (60% Peninsular, 29% Sabah, 11% Sarawak).

• Growth focused in East Malaysia due to land .

1.6.2 Production

• 1980: 2.57 mt.

• 2001: 11.8 mt (↑ 4.6x).

• Sabah became largest CPO producer by 1999, 31.5% share .

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🌟 Summary

Palm oil’s journey — from four seedlings in Bogor (1848) to global industry dominance — reflects Malaysia’s role as a pioneer. FELDA’s schemes, breeding breakthroughs, and R&D (MPOB) positioned Malaysia as a leader.

Key strengths:

• World’s highest oil yield per hectare.

• Versatile food & non-food applications.

• Stable oil profile.

Challenges:

• Land scarcity, sustainability pressures, and competition from Indonesia.

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📚 References / Footnotes

1. Hartley, C.W.S. (1988). The Oil Palm. Longman Scientific & Technical.

2. Tate, D.J.M. (1996). The RGA History of the Plantation Industry in the Malay Peninsula. Oxford University Press.

3. Gray, R. (1969). The History of Agriculture in Malaya. Kuala Lumpur.

4. Singh, H. (1976). Plantation Agriculture in Malaysia. Universiti Malaya Press.

5. World Bank (1955). Malaya: Economic Survey Mission Report. Washington DC.

6. Latiff, A. (2000). Elaeis oleifera Breeding Potential. MPOB Journal.

7. Syed, R.A. et al. (1982). Introduction of Elaeidobius kamerunicus for Oil Palm Pollination in Malaysia. Planter Journal.

8. Henson, I.E. (1990). Oil Palm Productivity: Potential and Limits. PORIM Bulletin.

9. Rajanaidu, N. et al. (2000). Oil Palm Breeding Strategies. MPOB Monograph.

10. Siburat, S. et al. (2002). Performance of Oil Palm Clonal Plantings. Planter.

11. Cheah, S.C. (2000). Transgenic Oil Palm Development. MPOB Research Report.

12. Yusof, B. (2001). Genetic Engineering in Oil Palm: Progress and Prospects. MPOB.

13. Salmiah, A. (2000). Palm Oil: Chemistry and Uses. MPOB Publication.

14. De Man, J. & De Man, L. (1994). Cocoa Butter Substitutes from Palm Oil. JAOCS.

15. Berger, K. (1996). Nutritional Aspects of Palm Oil. American Journal of Clinical Nutrition.

16. MPOB (2001). Palm Oil Statistics 2001. Malaysian Palm Oil Board.

17. Oil World (2000). Oil World 2020: Global Projections for Oils and Fats. Hamburg.

18. Abang Helmi, I. (1998). Future Expansion of Oil Palm in Sarawak. Sarawak Development Journal.

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