Time of reckoning for Malaysia’s palm oil

A sobering reality is quietly taking shape across Malaysia’s oil palm sector – one of the nation’s most vital economic pillars.

Once a powerful engine of rural prosperity and national resilience, the industry now shows unsettling signs of drift.

Yields have stagnated. Reinvestment is hesitant. Institutional cohesion is fraying into silos.

And perhaps most worryingly, the urgency and unity that once drove this remarkable Malaysian success story may be fading away.

This is not a critique, but a sincere reflection born from countless conversations with seasoned planters, researchers and industry veterans – those who spent their lives nurturing this sector from the ground up.

Their voices are not bitter, but they are heavy with concern. They see what’s coming. They know what’s at stake.

What they share is not nostalgia – it is a warning. And more importantly, it is a call to action.

Despite favourable crude palm oil prices, the industry continues to grapple with chronically low yields and a reluctance to reinvest in its own future.

These are not just technical issues, they are symptoms of a deeper malaise: a sector that risks losing its sense of purpose, its cohesion and its place in the global arena.

And yet – there is hope. This is no obituary. Malaysia’s oil palm sector remains a titan. It continues to drive rural uplift, job creation, generating multiplying and spin-off economies, and national income.

Our track record in plantation management and research and development (R&D) is world-class.

The crop’s versatility – from food to pharmaceuticals, from oleochemicals to green energy – still promises a golden future.

This is a crucial moment. Before our hard-won gains and national pride slip further from our grasp, we must collectively reignite the vision, unity and leadership that once made Malaysia a global model in sustainable palm oil.

This is more than a commodity issue. It is a national reckoning.

Palm oil touches our sovereignty, our economy, our global standing. And if we’re not leading in this space, rest assured – others will.

But let’s not delude ourselves: that future will not arrive by default.

Prolonged yield decline isn’t just a technical blip – it’s a symptom of deeper systemic neglect.

The industry needs more than patchwork fixes. It needs bold, cohesive action. It needs, quite frankly, a jolt of political electricity and a vision and mission worthy of its history.

Why oil palm still matters?

Let’s cut through the noise. There is no credible alternative crop that offers what oil palm does. It covers over 700 million trees in total 5.6 million ha – mostly in underserved rural regions – and delivers unmatched returns per ha.

In a labour-starved country, it’s one of our few viable large-scale agricultural bets. It is resilient. It sequesters carbon efficiently. It powers livelihoods.

And its downstream potential is just beginning to bloom.

If we lose this sector, it won’t be because the crop failed. It will be because we did.

Troika for transformation

So what do we do? We stop dithering. We install a command centre with a war mindset. A leadership Troika.

The Troika should comprise:

> A visionary minister, one who commands national attention and has the political spine to make bold decisions.

> A respected scientist-technocrat to anchor strategy in data, evidence and innovation.

> An industry captain who understands the knowhow, the market and the people who can make it all happen.

We’ve done it before.

The 1980s blueprint – the late Tun Lim Keng Yaik, Professor Augustine Ong and the late Tan Sri B. Bek-Nielsen – worked because it combined political will, scientific integrity and commercial know-how with adequate funding.

That formula still holds. We just need to modernise and mobilise it.

This Troika must report directly to the prime minister. No bloated, ceremonial committees.

Just empowered professionals with real mandates, real budgets and real accountability.

Way forward: A decade-long strategy

This isn’t a 100-day fix. It’s a 10-year commitment (at least) with three bold phases.

Phase 1: Laying the groundwork (Years 1 to 3).

Unleash the best minds from government, academia, the private sector and even seasoned retirees. Build multi-generational teams.

Fund this revival through a smart blend of public allocations, R&D grants, private investments and a strategic reinvestment of the Windfall Profit Levy – collected solely from growers, and therefore rightly, a portion returned to where it belongs: for the growers, by the growers, with the growers.

Review and sunset redundant committees to free up both funds and focus.Launch a five-pillar strategic programme.

> Plantation productivity: Bridge yield gaps through agritech, precision nutrient management, realise site-yield potentials, elite replanting material and robust field rehabilitation.

Tackle Ganoderma with science. Throw out gimmicks, guesswork or the “I think” mindset.

> Milling and processing: Modernise mills. Embrace effluent reuse, energy recovery and downstream value-creation. No more leaks, literal or economic.

> Product Innovation: Invest in R&D that reaches the shelf. Think and rethink food, pharma, cosmetics, bioplastics – then back it with translational science.

> Sustainability: Close environmental, social and governance gaps. Simplify certifications. Prioritise transparency. Make Malaysia a sustainability leader, not a follower.

> Future tech: From artificial intelligence and data analytics to biodegradable packaging and regenerative practices, this is our chance to lead the green revolution from the tropics.

Phase 2: Scale, integrate, test (Years 4 to 6).

With groundwork laid, move to execution. Pilot innovation clusters in Peninsular Malaysia, Sabah and Sarawak to model solutions in cultivation, mechanisation, sustainability and digitalisation.

Use real-time data and key performance indicators to monitor yield, product quality, labour efficiency, carbon metrics and market uptake.

> Break bureaucratic silos: Align agencies and ministries, public research, universities and private innovators with industry needs.

Expand global partnerships and capacity building to strengthen Malaysia’s trade diplomacy and sustainability leadership.

Phase 3: Consolidate and lead (Years 7 to 10).

Scale what works. Inspire investor confidence. Attract top talent.

Position Malaysia not just as a top producer, but a standard-setter in sustainable tropical agriculture.

Ensure sustainability delivers real-world outcomes, promote shared but differentiated responsibilities.

Strengthen public communication through regular reports, scientific papers including in layman language, and hold open days to maintain trust and stakeholder engagements.

A national legacy worth reclaiming

Oil palm is not just an industry. It is a story of grit, innovation and rural uplift. It is part of Malaysia’s DNA.

It has built schools, roads, livelihoods Environmental, social, and governance and yes, national pride.

To let it decline now, not because it lacks value, but because we lack vision, would be an epic failure of leadership.

But it doesn’t have to end this way.

We have the land. We have the talent. We have the institutions.

What we need urgently is the will. As someone once quipped: It can be a BYD moment – Build Your Dream or Bury Your Dream.

The answer depends on what we do next. Dreams don’t build themselves. But with courage, clarity, determination and collective commitment, they don’t have to be buried either.

Let us not be the generation that presided over the decline.

Let us be the one that reignited the flame.

The clock is ticking. Let’s get to work.

Joseph Tek has over 30 years of experience in the plantation industry, with a background in research, leadership and advocacy. The views expressed here are the writer’s own.

Tags: prices, Crude palm oil, Malaysia, yields, oil palm