Growing Of Oil Palm (smallholdings) Companies in Malaysia

The oil palm industry in Malaysia is a huge and important sector of the economy, providing employment for hundreds of thousands of people and contributing billions of dollars to the country’s GDP. The oil palm industry is also a major source of foreign currency for Malaysia, with palm oil and palm kernel oil exports earning the country tens of billions of dollars each year.

The oil palm industry in Malaysia is dominated by two types of companies: smallholders and large-scale plantations. Smallholders are individual farmers who own and operate their own small farms, usually of between 2 and 50 hectares. Large-scale plantations are owned and operated by companies, often with tens of thousands of hectares of land under their control.

The vast majority of oil palm smallholders in Malaysia are members of the Federal Land Development Authority (FELDA), a government agency set up in 1956 to help small farmers become commercial farmers. FELDA provides smallholders with training, financial assistance, and access to land. As of 2016, there were over half a million FELDA smallholders in Malaysia.

In recent years, the Malaysian government has been encouraging smallholders to join forces and form companies. This has led to the growth of a number of small-scale oil palm companies,
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