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Introduction: Varieties and Alternatives of Catching Up: Asian Development in the Context of the Twenty-First Century Read chapter Read first chapter

2016 | OriginalPaper | Chapter

9. Resource-Based Industrialization of the Malaysian Palm Oil Industry

Author : Hiroshi Oikawa

Published in: Varieties and Alternatives of Catching-up

Publisher: Palgrave Macmillan UK

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Abstract

This chapter attempts to delineate a model of resource-based industrialization by focusing on the experience of the Malaysian palm oil industry. The chapter examines how the palm oil industry upgraded its exports from crude palm oil to processed palm oil and became the world’s largest producer and exporter of palm oil for over 40 years until Indonesia surpassed it in the mid-2000s. It is true that Malaysia is blessed with suitable natural conditions for oil palm cultivation. However, the chapter argues that these are necessary, but not sufficient, conditions for successful development and it stresses the importance of other factors such as government policies, technological features specific to the industry, and changing circumstances in the world economy.

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previous chapter Curse or Opportunity? A Model of Industrial Development for Natural Resource–Rich Countries on the Basis of Southeast Asian Experiences
next chapter The Development of the Indian Software Services Industry
Footnotes
1
Figures are based on World Bank country data.
 
2
Figures are as of 2011, based on Malaysia MATRADE data.
 
3
However, the share of Malaysian palm oil exports has declined gradually in recent years, mainly due to the rapid expansion of Indonesia’s palm oil exports. Indonesia became the world’s largest exporter of palm oil in 2008.
 
4
A certain percentage of CPO is exempted from export duties.
 
5
As a result, Malaysian palm oil farming increasingly depends on foreign workers, particularly those coming from Indonesia.
 
6
Based on my interview with a Japanese health-care company on 4 January 2013.
 
Literature
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Metadata
Title
Resource-Based Industrialization of the Malaysian Palm Oil Industry
Author
Hiroshi Oikawa
Copyright Year
2016
Book
Varieties and Alternatives of Catching-up

Print ISBN: 978-1-137-59779-3

Electronic ISBN: 978-1-137-59780-9

Copyright Year: 2016

DOI
https://doi.org/10.1057/978-1-137-59780-9_9