Research on World Agricultural Economy

Oil palm cultivation significantly contributes to Malaysia’s economy by generating income, creating employment, and alleviating poverty through the sale of palm oil products. As the world’s second-largest exporter of palm oil, Malaysia plays a vital role in global markets. However, oil palm production faces climatic, edaphic, and socio-economic challenges, including poor yields, rising palm oil prices, increasing temperatures, water stress, and disease outbreaks. Among these, climate-related issues are the most persistent, posing significant risks to cultivation. This review assessed the state of extension services in Malaysia’s oil palm sector, highlighting challenges faced by extension agents and exploring innovative methods to enhance service delivery. Findings indicate that excessive heat induces water stress, reducing the metabolic efficiency of oil palms and lowering fresh fruit bunch (FFB) yields. Additionally, heavy rainfall delays harvesting and causes FFB rotting, further impacting productivity. To address climate challenges and ensure sustainable cultivation, Malaysia has implemented various programs, with extension services playing a crucial role. These services provide essential information, innovations, and interventions to oil palm growers, enhancing their resilience. They also facilitate connections between stakeholders, including government and non-governmental organizations. This study recommends strengthening extension services to support climate adaptation, developing new policies and guidelines for plantations, training more personnel, promoting partnerships, increasing resource allocation, and promoting stakeholder collaboration. Therefore, implementing these strategies, Malaysia can enhance the sustainability of its oil palm sector while mitigating climate-related risks.