Socio-economic development of palm oil smallholders in Malaysia

Abstract

Malaysia is the world's second-largest producer, and a major exporter, of palm oil commodities. Making up to 46.9% of Malaysia's GDP in an agricultural contribution for the year 2015, palm oil commodity has also increased rural farmers' earnings, and a majority has succeeded in getting out of poverty. This article aims to analyze issues and suggestions for strengthening the socio-economic development of palm oil smallholders through our case study in the state of Terengganu Darul Iman. Realistically, this study used face-to-face interview methods and secondary references to obtain raw data and information. Then both data and information will be qualitatively analyzed. Finding has shown ten issues confronted by oil palm smallholders such as the technique used to cultivate the oil palm, their awareness of latest technology in oil palm, lack of capital, low wages in oil palm commodity, transportation, subsidies by the government, labor problems in the fields, inconsistent prices of an oil palm, pestilence and its diseases. To overcome these issues, this study has made some recommendations to strengthen the socio-economic development of palm oil planters through advisory, exhibition, inspection to oil palm fields, and other efforts such as downstream crops.