Oil Palm Plantation Firms Urged to Draw Up Replanting Plan to Sustain Productivity

The Ministry of Plantation and Commodities (KPK) has urged oil palm plantation owners and companies to implement structured replanting programs to sustain fresh fruit bunch (FFB) yields and ensure long-term industry productivity.

Deputy Minister Datuk Chan Foong Hin emphasized that the increasing number of aging oil palm trees is negatively affecting the industry’s productivity due to declining yield and harvesting challenges.

“The rising number of old palm trees, owing to the low replanting rate, is also affecting the industry's productivity,” he said while winding up the Dewan Negara debate on the royal address today.

Concerns Over Low Replanting Rates

Chan revealed that the average replanting rate for oil palm estates between 2014 and 2024 was only 2.2%, significantly lower than the recommended 4–5%. This low replanting rate raises concerns about long-term productivity, as older trees become less productive and harder to harvest.

However, despite below-optimal replanting levels, Malaysian Palm Oil Board (MPOB) statistics indicate that FFB yields have increased over the past three consecutive years:

• 15.47 tonnes per hectare in 2021

• 15.49 tonnes per hectare in 2022

• 15.79 tonnes per hectare in 2023

• 16.70 tonnes per hectare in 2024

  
  

Call for Strategic Replanting & Industry Competitiveness

To maintain sustainable production and cost efficiency, the KPK Ministry encourages plantation owners to prioritize replanting efforts by replacing trees older than 25 years, which are unproductive and difficult to harvest.

Chan emphasized that adopting a proper replanting schedule, focusing on trees aged 10 to 15 years, will enhance FFB yields, ensuring Malaysia’s palm oil industry remains competitive while continuing to contribute to national economic growth.

“KPK will continue to implement strategic measures to increase FFB yields in estates and ensure that Malaysia's palm oil industry remains competitive,” he stated.