Palm oil refining in Malaysia emerged in the country's industrial scene in 1974. Prior to this, only a few factories such as Lam Soon (M) Berhad, Lever Brothers (M) Sdn Bhd and Senawang Edible Oils Sdn Bhd, were refining some 10% of the country's total crude palm oil production. Most of the crude palm oil produced in the country were exported to industrialized countries like the EEC, USA, Japan and Australia.
The year 1974 marked the beginning of a succession of refineries which were set up throughout the country. Within two years, a total of 15 refineries were in operation, making Malaysia the largest palm oil refining country in the world. Currently, there are 50 refineries in operation. A majority of the operating refineries are in one way or another associated with the oil palm plantation and milling sectors, or both. Some of the refineries have also tied up with manufacturers of specialty products and oleochemicals. Today, more than three decades after the inception of the palm oil refining industry, refined and processed palm oil accounts for almost 85% of the total palm oil exports. The rapidly increasing palm oil refining and fractionation capacity consolidated Malaysia's position not only as a leading producer, but also as a major marketing factor in the international trade of oils and fats. This position had been achieved through, among other factors, the stringent observance of quality control and the capability of local refiners to meet the high standards demanded by world markets.
Much of the success of the industry was contributed by the fact that it was possible to open up new markets which were once dominated by other vegetable oils and fats. However, there is now a marked shift of concentration away from the industrialized countries to the non-traditional or developing countries such as India, Pakistan, China, Bangladesh, Egypt, Turkey and Saudi Arabia. Several Latin-American and African countries are also buyers of Malaysian palm oil.
The growth and development of the palm oil refining industry in Malaysia have helped palm oil to achieve worldwide acceptance. In terms of exports, palm oil/palm kernel oil is still the largest oils and fats traded in the world, accounting for about 60% (2008) of total exports. Malaysia continued to be the world's largest exporter of palm oil, accounting for about 46% (2008) of the world palm oil exports.
Most refiners in Malaysia are now members of The Palm Oil Refiners Association of Malaysia (PORAM). These refiners produce a wide range of processed palm oil products such as Refined, Bleached and Deodorised Palm Oil / Palm Olein / Palm Stearin / Cocoa Butter Equivalents / Substitute (Lauric /Non-Laurics), Cooking Oils (Pure Palm Olein, Blended or Polyunsaturated) and many others.
Palm oil refining in Malaysia emerged in the country's industrial scene in 1974. Prior to this, only a few factories such as Lam Soon (M) Berhad, Lever Brothers (M) Sdn Bhd and Senawang Edible Oils Sdn Bhd, were refining some 10% of the country's total crude palm oil production. Most of the crude palm oil produced in the country were exported to industrialized countries like the EEC, USA, Japan and Australia.