Major Challenges Facing the Palm Oil Industry in Malaysia: The Road Ahead towards Sustainability

Cluster Research Grant, 2020

Abstract

The palm oil supply chain in Malaysia is faced with multi-faceted major challenges, either at the local or international front. These major challenges can be categorised into three subsets, namely, environmental, economic and social. Much has been written about this major challenges but there is a lack of in-depth coverage of the complexity of these issues and more importantly, on the effectiveness of the strategic responses from the Malaysian side. Thus, this strategic gap or void is the basis for the statement of problem as no in-depth research has been carried out in this area. Based on the problem statement, the objectives of this research are the identification and evaluation of the strategic responses to the major environmental challenges, major economic challenges and major social challenges faced by the palm oil supply chain in Malaysia. After the assessment of the strategic responses, recommendations on continuation and/or amendments to existing strategic responses and also new responses to counter or overcome these major challenges for setting the pathways for environmental, economic and social sustainability. The research methodology is operationalised via a conceptual framework that consists of the three pillars of sustainability, i.e. environmental sustainability, economic sustainability and social sustainability. This is aided by the Venn’s Circles of Sustainable Development. The research area is the whole of Malaysia due to the localities of the three foci clusters or strata, namely plantations, palm oil millers and refiners. Stratified random sampling is undertaken based on these three clusters or strata. Research data is obtained via secondary and primary data. Secondary data is for the purpose of literature review, the development of the research methodology and also for time-series analysis. Primary data is obtained from key informants as well as a field survey with a structured questionnaire.

Project Leader

Er Ah Choy (Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia (UKM), eveer@ukm.edu.my)