If you drive up the North South Highway the next time, just look to your left and right and you will see that the entire Malaysian landscape is FILLED with oil palm plantations. Some of them are in their early stages, some are already matured. But it does show one thing: Malaysia is indeed determined to be the No.1 Producer of Oil Palm in the World.
In fact, Malaysia and Indonesia are vying to be the top producer of oil palm in the world.
This should do well for companies like Golden Agri, Olam and Wilmar which are listed on the Singapore Stock Exchange (Note: I do not currently own any of these stocks but am thinking of entering into a position when the time is right.)
Oil Palm is a lot easier to grow compared to cocoa or other fruit plantations. Oil Palm is very hardy and it seems that the production is also more consistent compared to other kinds of plantations like durian, pineapple, etc.
The price of oil palm has also been increasing steadily over the years as people have found use for oil palm in the form of bio-fuels. On top of that, labour is pretty cheap both in Indonesia as well as in Malaysia (which relies heavily on Indonesians for labour). All these makes oil palm plantations a profitable business for both big companies like Sime Darby as well as small plantation owners.