Malaysia’s Competitiveness in Palm Oil Industry

Malaysia’s Competitiveness in Palm Oil Industry 0
Title: Malaysia’s Competitiveness & Oil Industry
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Malaysia’s Competitiveness in Palm Oil Industry 1
Executive Summary
The national competitiveness have gained a lot of importance in the industries and the
government activities of many countries. The main aim of the national competitiveness to
encourage more growth in different fields with various driving forces. But with the economy
witnessing a decrease there are many industries that are struggling in the country Malaysia. The
palm oil industry though have witnessed a terrible time especially in the last five years the
industry still generated respectable growth. In this assignment the economy of Malaysia and the
national competitiveness of the palm oil industry will be examined.

Malaysia’s Competitiveness in Palm Oil Industry 2
Contents
Introduction......................................................................................................................................3
Malaysian Economy & the Business Environment of Palm Oil Industry.......................................3
Competitiveness between Companies in the Palm Oil Industry......................................................5
Is it Worthwhile to Invest in this Industry?...................................................................................11
Conclusion.....................................................................................................................................11
References......................................................................................................................................13
Image References.......................................................................................................................15

Malaysia’s Competitiveness in Palm Oil Industry 3
Introduction
National competitiveness can be defined as a method that examines the capabilities which
the economy of a nation has to grow. The examination and measurement are conducted with the
help of set factors, institutions, and policies that are utilized to determine the level of
productivity in a nation. The national competitiveness is a tool that is very crucial for uplifting
the standard of living in a nation. Malaysia is considered to be a very competitive nation and
even after facing massive challenges in the year 2016, the country was considered in the top 25
most competitive nation’s list for 2017. Malaysia’s national competitiveness is due to a stable
economy which successfully over the uncertain challenges, skilled workers, stable political
conditions, a strong infrastructure, and an excellent legal system. The one industry that has
contributed to the Malaysian economy largely, especially in the last forty years is Malaysia’s
Palm Oil industry. Malaysia is the second largest producer of palm oil after Indonesia and every
year the country produces around 90 million tons of palm oil in different varieties. The palm oil
industry has such a huge impact on the Malaysian economy that more than 16% of land in
Malaysia is covered with palm trees that is around 57,400 km2.
Malaysian Economy & the Business Environment of Palm Oil Industry
The Malaysian economy is considered as the third largest economy in the Southeast Asia.
The economy of Malaysia is a knowledge based industry along with the adaptation of technology
that is cutting edge due to manufacturing and also the digital economy. The agricultural sector in
Malaysia has shifted their focus from the food cropping of coconut and paddy to industrial crops
like rubber and palm oil and this happened years back when the country realized the benefits of
palm oil (A 431-439). Though Indonesia is the largest producer of palm oil in the world but
Malaysia is the largest exporter in the world of palm oil. The population of Malaysia is diverse