Malaysia is known for many different industries and resources. They are strong in the palm oil industry due to the fact that their lands are well used for palm trees. With the high rates of agriculture in the country and the strong stance in exporting, it has long been popular for its large values of money created from palm oil growing.
However, recently values in the industry has shown a great fall in the numbers and the growth of palm oil in Malaysia. This was a shock as this resource plays an important part in the economy of the country and further decrease in number might have a more negative impact. This fall in numbers was due to a few international rules and laws implemented that has affected the whole industry. This includes the European Commission decision that palm oil will not be used anymore in transporting fuels by 2030. Malaysia is the second largest producer of the palm oil, which has moved the government to file disputes and complaints against the decision conducted by the European Commission.
This was addressed by a smallholder in Hulu Selangor called Mr. Ibrahim Manap. He commented on the decision by the EC saying, “They can chop their forests down, but we are (supposed to be) oxygen suppliers. This is not fair. That time, a ton of oil palm fruits sold for about RM450 (US$108) to RM540, now it’s just above RM320. I still have to deduct labor costs and transport costs, which can come up to RM75 a ton.”