About I-Crop

Welcome to I-Crop, a comprehensive and dedicated platform for the palm oil industry, one of the main economic pillars of Malaysia. I-Crop enables easy access to the latest information on international and local policies impacting all segments and players in the palm oil industry, from smallholders and large plantations to associations and government agencies.

There is an undeniable need for greater collaboration among players within and outside the immediate community of the palm oil industry. 

MPOB Director General Datuk Dr. Ahmad Parveez Hj Ghulam Kadir accurately noted that sharing resources will help advance the industry to greater efficiency and higher productivity by leveraging innovations in information and biotechnology.

I-Crop is envisioned as providing an opportunity for such exploration by enabling the networking of resources within a platform accessible to parties with relevant know-how, competencies, and resources to contribute to the industry.

Information is powerful. Collaboration is the thread that connects it all.

I-Crop is focused on assisting policymakers to relay planned initiatives toward long-term strategic goals, ensuring the longevity and ultimate sustainability of the national palm oil industry, which provides livelihoods for hundreds of thousands across the nation.

Industry-specific Focus

I-Crop is tailored specifically for the plantation industry and serves as the go-to resource center for targeted information-sharing among all those involved in the industry. Users can easily access up-to-date and archived information with advanced search and filter options.

With I-Crop, users can access the following:

• Exclusive reports and case studies
• Insider information
• Forums and networking channels
• Comprehensive business listings

The Palm Oil Industry Community

With a long heritage dating back to its introduction as a commercial crop in 1917 at the Tennamaram Estate in Selangor, the palm oil industry is deeply rooted in Malaysia. It enjoys active participation from government agencies, prominent plantation owners, smallholders, and various organisations, all dedicated to the well-being of this critical economic sector, even before sustainability became a global agenda.

Among the leading and influential organisations that have greatly contributed are:

• Malaysian Palm Oil Board (MPOB) 

The government agency entrusted with promoting, developing objectives and policies, conducting research, and regulating licensing for the Malaysian oil palm industry. MPOB aims to maintain the strength and viability of the local industry through collaboration and coordination with both national and international organisations.

• Malaysian Palm Oil Council (MPOC) 

An organisation dedicated to positioning Malaysia as the global leader in certified sustainable palm oil for consumers worldwide, by actively engaging

with stakeholders and improving market access and acceptance of the Malaysian Sustainable

Palm Oil (MSPO) certification.

• Malaysian Palm Oil Association (MPOA) 

A non-profit organisation representing the plantation industry, voicing and providing industry views on issues related to land, labor, trade, and pricing. Its objective is to balance the needs and interests of various segments for greater synergy and development of the plantation industry as a whole.

• Malaysian Palm Oil Certification Council (MPOCC)

Established a globally recognised certification system for Malaysian palm oil products, based on auditable sustainability standards applied throughout the entire supply chain, assisted by renowned certification bodies and auditors.

• Palm Oil Refiners Association of Malaysia (PORAM) 

A non-profit organisation contributing to the overall efficiency and improvement of quality and standards in refining and related downstream processing of palm oil, palm kernel oil, and others.

• Malaysian Oil Palm Nurseries Association (MOPNA) 

Provides the local market with quality-grade seedlings, contributing to the agenda of producing advanced crops with significantly improved yields.

The Marketplace and Malaysia’s Position

Malaysia is one of the largest producers and exporters of palm oil in the world, covering more than 10% of the global oils and fats production and over a quarter of the global export trade of oils and fats. Annual production exceeds 18.5 million tonnes, with an average of 4 million tonnes for domestic use and the remainder for export. 

Our palm oils are exported mainly to India, which is one of Malaysia’s largest markets, accounting for around 18% of total exports. 

Other major destinations include China (close to 10%), the European Union (7%), Kenya (6%), Turkiye (6%), Japan (4%), and Pakistan (3.3%), collectively accounting for over 54% of the country’s exports.

Proactive Initiatives Toward Sustainability and Longevity

As a major global palm oil producer, Malaysia has proactively initiated numerous impactful measures aimed at addressing environmental conservation and sustainability. 

Among them are:

• Limitation on New Planting and Expansion of Plantations

The latest initiative is a new policy limiting the expansion of oil palm plantations to no more than 6.5 million hectares, as announced by the Minister of Plantation Industries and Commodities, Datuk Seri Johari Abdul Ghani. This direction aligns with the country’s pledge to maintain its current forest cover of 54% to enhance biodiversity protection.

The Minister also stated that any palm fruits harvested from deforested areas would be barred from entering palm oil mills, and any factories found accepting such fruits would be prohibited from exporting or selling their products.

Currently, the country’s total land area of oil palm plantations stands at 5.6 million hectares, which

means there is still room for new oil palm planting and expansion. However, these activities must

comply with strict requirements under the MSPO standards, which prohibit the conversion of natural forests, protected areas, and areas with high conservation value unless approved by the state authority with jurisdiction over land matters.

• Global Standards and Certification in MSPO

To enhance the competitiveness of the country’s palm oil industry, Malaysia launched the Malaysian Sustainable Palm Oil (MSPO) standard in November 2013. Developed with input from stakeholders in the palm oil industry, MSPO was implemented on a voluntary basis from 2015 and is particularly designed to assist small and mid-range cultivators who may not afford the global Roundtable on Sustainable Palm Oil (RSPO) standard.

The MSPO standard provides industry players with sustainable practices to be implemented in their operations and processes, aligning palm oil production management with existing national laws and regulations. The globally recognised MSPO certification covers the entire supply chain, from raw material providers—such as plantations, independent and organised smallholdings—to palm oil processing facilities, transporters, and suppliers.

MSPO certification enables Malaysian companies to declare their products as sustainable, enhancing the country’s reputation for being socially and environmentally responsible in the face of intense criticism over alleged deforestation and lack of conservation practices within the palm oil industry.

• Bio-Tech Utilisation

Strong efforts have also been introduced in the national palm oil industry for managing waste generated from the production cycle, including empty fruit bunches, palm oil mill effluent, and palm kernel shells.

Initiatives include converting such waste into bioenergy, incorporating it into building materials, and, more recently, utilising biotechnology to repurpose palm oil byproducts as feed for black soldier fly larvae, which subsequently produce protein and fertilisers.

This initiative, adopted by the local company BioLoop Sdn Bhd, taps into production waste from palm kernel expeller and palm kernel cake, thereby diverting substantial quantities of organic waste from landfills into commercially viable products. BioLoop emphasises that using larvae is significantly faster than traditional waste management processes and, correspondingly, reduces greenhouse gas (GHG) emissions, addressing concerns about the cleanliness of palm oil production.

An added value of this initiative is the inherent traceability introduced by the larvae treatment process within the overall production supply chain, demonstrating the country’s strong commitment to adopting positive efforts toward meeting global sustainability requirements with low carbon footprints.

Policies on Labour Shortages

To date, the palm oil industry faces a shortage of around 40,000 workers, particularly in areas requiring hands-on work such as harvesting and plant maintenance—tasks that are challenging to mechanise and automate. 

Due to perceptions of these jobs as 3D (dirty, dangerous, and demeaning), the industry has a high dependency on foreign labour, and the Covid-19 pandemic has exacerbated this shortage by imposing greater restrictions on migrant workers.

To address this, MPOB has focused its efforts on creating opportunities for the younger generation of Malaysians through the establishment of training centers and integrated programs such as the Crop Integration Scheme and the Livestock Integration Scheme, to enhance the appeal of a long-term career in the industry.

The government has also allocated RM60 million to the Mechanisation and Automation Research

Consortium of Oil Palm for agricultural mechanisation technology research and commercialisation

(MARCOP), established to reduce reliance on foreign labor in the palm oil industry.