Malaysia’s palm oil industry stands at a crucial crossroads, with urgent reforms needed to avoid stagnation and decline, according to Joseph Tek Choon Yee, former chief executive of the Malaysian Palm Oil Association (MPOA). STR/ADZLAN SIDEK.
KUALA LUMPUR: Malaysia’s palm oil industry stands at a crucial crossroads, with urgent reforms needed to avoid stagnation and decline, according to Joseph Tek Choon Yee, former president of Malaysian Estate Owners Association.
Describing the current challenges as a crisis, Tek called on industry players to take swift and decisive action, emphasising the need for immediate responsibility.
“The oil palm industry is our national asset. This isn’t just a wake-up call—it’s a full-blown Code Blue alarm. We need an urgent, collective effort to address these issues head-on,” he said in a statement.
Malaysia, the world’s second-largest palm oil producer, exports 90 per cent of its palm oil, as local consumption accounts for only 10 per cent of production.
However, Tek noted that neighbouring Indonesia, the top global producer, has a significantly larger advantage with three times Malaysia’s planted area, six times its national land bank, and eight times its population as a consumer base.
“Our neighbour Indonesia has three times our oil palm planted area—meaning they need workers themselves. They also have six times our national landbank, so potential expansion and eight times our population as consumers.
“We are not in the same business game anymore,” he said.
Warning that the industry risks stagnation without bold action, Tek called for tough discussions and decisive measures to secure its future.
“If we don’t act quickly, the oil palm industry will be left behind, and so will we – and the golden goose will be ‘fossilised’ by then,” he cautioned.
According to Tek, the palm oil industry faces six key challenges, beginning with stagnant yields.
With land expansion no longer an option, he emphasised that increasing productivity is the only viable path forward.
Replanting is another major issue, as ageing trees yield less fruit despite high market prices.
However, he said many growers delay replanting due to its high costs, risking long-term declines in productivity.
Tek also highlighted the threat of Ganoderma, a deadly fungal disease that continues to devastate plantations.
Without a breakthrough solution, it will further hinder productivity.
Labour shortages pose another critical challenge, leading to significant crop losses.
Skilled workers are essential for harvesting, yet efforts to attract local labour have largely failed due to a lack of policy support.
While mechanisation offers some relief, it remains incomplete—especially for harvesting tall trees.
Without advancements in technology, dependence on manual labour persists.
Finally, Tek pointed out a growing talent crisis in the industry, as companies struggle to attract and retain skilled professionals.
He stressed that investment in training, better wages, and clear career growth opportunities is essential for the industry’s long-term sustainability.
Overall, Tek opined that the palm oil industry faces urgent challenges, but progress is stalled by bureaucracy, leadership gaps, and complacency.
He said that with millions relying on the industry and billions in revenue at stake, urgent action is needed.
He noted that a multi-ministerial task force reporting to the prime minister must be established to drive real, solution-focused change before the industry’s sustainability is jeopardised.
Source: New Straits Times
