Malaysian Crude Palm Oil Export Performance in Partner’s Countries for the year 2000-2017

Abstract

Malaysia is the second largest producer and export of Crude Palm Oil (CPO) in the world. However, there is a black campaign made by the European Union (EU) that banned the CPO consumption. This research is to analyse the competitiveness and factors that affect the export performance in China, EU, India, Japan and USA. The analytical methods used in this research are Revealed Comparative Advantage (RCA), Export Product Dynamic (EPD) and panel data. The results in RCA shows that Malaysian CPO is competitive in 5 major trade partners. The results of EPD analysis shows that Malaysian CPO commodities for the United States and EU are in the rising star position. Japan experiences retreat conditions. Then CPO exports to China and India experienced a falling star position. The results of the panel data shows that the three variables are significantly affecting the CPO export which are Population in partner’s countries, CPO price and Exchange rate. Meanwhile, GDP in Malaysia is not significant.