Mechanisation as the Key to Driving Efficiency and Innovation in Malaysia’s Palm Oil Industry

The Malaysian palm-oil industry is increasingly looking toward mechanisation as a critical strategy to counter declining yields, a growing concern for both plantation operators and government regulators.

At the 2025 Palm and Lauric Oils Price Outlook Conference, industry experts highlighted that low productivity from aging plantations and insufficient replanting has led to widening gaps between crude palm oil and competing vegetable oils like soybean and canola, affecting Malaysia’s global competitiveness.

Solutions In Motion

To address these challenges, stakeholders are advocating for broader adoption of mechanised harvesting and field management equipment. Such technology can offset labour shortages, improve operational efficiency, and help maintain yields even in older plantations.

In addition, the government is intensifying seed-quality checks at nurseries to ensure high-quality planting material is used for replanting programs, complementing mechanisation efforts with improved input quality.

While only 114,000 hectares were replanted in 2024 — roughly 2% of total planted area, below the recommended 4–5% annual target — mechanisation can help optimize existing plantings and accelerate harvesting cycles, reducing yield losses.

Investors are also exploring opportunities to integrate mechanisation with renewable-energy initiatives, such as converting palm-oil by-products into electricity, creating a synergy between efficiency, sustainability, and innovation.

Industry participants emphasized that coordinated efforts combining mechanisation, technological adoption, and government support are essential to address structural yield challenges. Without these interventions, productivity and competitiveness could continue to decline, threatening the long-term resilience of Malaysia’s palm-oil sector.

Credit: The Star