In 2023, the gross domestic product (GDP) contribution from palm oil in Malaysia was estimated to be at 3.7 percent of its GDP. Palm oil is one of Malaysia’s primary industries, and its main agricultural export globally. Importance of palm oil to the Malaysian economy Malaysia is the world’s second-largest producer and exporter of palm oil, after Indonesia. In 2023, it exported around 14.8 million metric tons of palm oil and palm-based products. These exports were valued at around 102 billion Malaysian ringgit. All in all, the palm oil industry contributed around 36 billion ringgit to Malaysia’s total gross domestic product. Outlook of the palm oil industry In recent years, concerns about the negative impact of palm oil cultivation on the environment, as well as the rise of protectionism in the global economy, has threatened Malaysia’s palm oil industry. The European Union, Malaysia’s most valuable export market, had effectively passed a law to phase out the use of palm oil in biofuels by 2030. Furthermore, unfavorable weather and the COVID-19 pandemic had led to a decrease in palm oil stockpiles and production. To counter the volatility in global palm oil demand, Indonesia, the commodity’s largest producer and exporter, has introduced policies to increase domestic consumption through biofuels. Malaysia’s domestic consumption of palm oil, however, is but a small fraction of what it exports. It would therefore need to do more to secure a market for its palm oil.

In 2023, the gross domestic product from palm oil was estimated to be 36.2 billion Malaysian ringgit. Malaysia is one of the world’s leading producers of palm oil, and the palm oil industry is a significant contributor to the Malaysian agricultural sector. The world’s most widely used edible oil Palm oil is used in a variety of consumer goods, from cosmetics to confectionery. Certain properties of palm oil, such as its resistance to oxidation and stability at high temperatures, make it suitable to be used in shelf-stable consumer goods. Worldwide consumption of palm oil has continued to increase over the years, despite the growing awareness of the environmental costs of palm oil cultivation, especially in its leading producers globally, Indonesia and Malaysia. Malaysian efforts for sustainable palm oil Malaysia has undertaken efforts to assure consumers of the sustainability of their palm oil. The Malaysian Palm Oil Association is one of the founding members of the Roundtable on Sustainable Palm Oil, a non-profit that seeks to develop and implement environmentally friendly standards in the production of palm oil. These measures have led to an increase in certified sustainable palm oil production areas. However, it has yet to reduce the size of land cleared for palm oil plantations without proper assessment of the environmental impact, thus threatening Malaysia’s rainforests and wildlife.

In 2023, palm oil was the biggest contributor to the Malaysian gross domestic product (GDP) in the agriculture sector with 3.7 percent share to the GDP. Other agriculture activities contributed 1.7 percent to the country's GDP. In total, the agriculture sector in Malaysia had a 7.8 percent share of the GDP.

In 2023, the production of palm oil in Nigeria reached 1.4 million metric tons. Between 2009 and 2023, the production quantity generally increased, registering the highest growth in 2010, when it grew by roughly 14 percent. From 2014 onwards, the output from palm oil production followed a rising trend. Nigeria is one of the leading producers of palm oil worldwide. Growing domestic palm oil consumption Around 1.9 million metric tons of palm oil were expected to be consumed in Nigeria as of the 2023/2024 crop year. This represented a peak in consumption compared to the ten preceding years, indicating that the farm product is one of the major crops in the country with a growing domestic need. Most palm oil is for industrial purposes, while a smaller percentage is used by households. Nigeria imports palm oil In 2022, Nigeria imported over 370 million in palm oil, representing a decrease of around 36 percent compared to the preceding year. In fact, since 2015, palm oil imports into the country have mainly fluctuated in value. Malaysia, Cote d'Ivoire, and Indonesia were the main origins of palm oil imports in Nigeria as of 2022.