The Importance of the Palm Oil Industry for Malaysian Entrepreneurs

Abstract

Malaysia is focusing on the agricultural sector, especially the palm oil industry, for economic development and employment opportunities. It is recognized that agriculture offers huge potential for creating thriving businesses within Malaysia. With full and active support from the government, there are insured big opportunities for existing and “would-be” entrepreneurs. The palm oil industry also brings myriad benefits to small farmers because farms are part of the overall supply chain. However, reinvesting in agribusiness needs a pool of young, innovative, committed, and enthusiastic local entrepreneurs. There are also characteristics unique to agribusiness that must be considered. Specifically, there are five elements present that make it different from other types of businesses: the requirement of related skills and knowledge, uncertainty due to variations in production, its unique cultural background, the possibility of political intervention and involvement, and its highly competitive structure.