Malaysia is the largest producer of palm oil in the world, producing about 15 million tonnes of palm oil a year. It now accounts for approximately 47% of global palm oil production and 54% of world exports. As the biggest producer and exporter of palm oil and palm oil products, Malaysia has been playing an important role to accomplish the needs and to stay competitive in the world's oils and fats market.

In 2004, Malaysia roduced nearly 14 million tones of palm oil, from its mere 3.8 million hectares of plantation area. This has contributed to more than 1/3 of the agricultural GDP or 2.9% of the national GDP. The sector has become of the most crucial foreign exchange earners for Malaysia.