Top 6 Plantation Companies and Stocks in Bursa Malaysia 2025

The plantation industry is an important part of Malaysia's agriculture. The main products are palm oil, rubber, cocoa, timber and pepper. Since 2001, prices for plantation products have continued to rise and the industry has grown steadily.

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In this article, we shed light on the fundamentals of Malaysia's thriving plantation industry and spotlight the top 6 companies that are leading the charge, offering a valuable guide for investors looking to capitalize on the potential of this thriving sector in 2025.

Why Invest in Malaysian Plantation Companies?

Located in the tropics, Malaysia is one of the leading countries in the plantation sector, with its climate being ideal for growing cash crops such as oil palm, rubber, and cocoa. In the plantation sector, the palm oil and rubber industries are the most prominent. Here are the reasons why you should consider allocating your portfolio to the Malaysian plantation companies.

Advantages of Palm Oil

Malaysia and Indonesia are the world's two largest producers of palm oil. Malaysian palm oil producers are committed to achieving the highest standards in their plantation and milling operations. Over the past decade, Malaysian and Indonesian palm oil production has continued to grow steadily, accounting for more than 85% of the world's total palm oil production. Malaysia is the world's second largest palm oil producer, with palm oil production of 20 million tonnes, accounting for around 45% of the global total in terms of production and exports. The area under palm cultivation in Malaysia accounts for more than half of the country's arable land, more than 5 million hectares, and is the mainstay of Malaysian agriculture. The production cost of Malaysia's gross domestic palm oil in 2017 was only RMB2,222 per tonne, much lower than other major oils and fats. The high yield per unit area and high planting efficiency are the main reasons for palm oil's competitiveness.

Advantages of Rubber

As a member of the International Tripartite Rubber Council (ITRC), Malaysia plays an important role in the rubber industry in Southeast Asia and is the sixth largest producer of natural rubber in the Asia-Pacific region.The Malaysian rubber industry's value added to gross domestic product (GDP) is projected to reach MYR2.24 billion in 2021, down from MYR2.44 billion in 2020, a decline. The rubber industry accounts for 2.3% of Malaysia's agriculture. Rubber in Malaysia is mainly produced by individual farmers, with more than 1 million hectares of rubber plantations owned by these smallholders. In 2021, the total area of smallholder rubber plantations in Malaysia was approximately 1.05 million hectares, a slight decrease from 1.06 million hectares in the previous year. In 2022, the Malaysian Ministry of Plantation Industries and Commodities launched the Rubber Industry Transformation Project to help increase the income of smallholder rubber farmers, reduce the financial burden of price increases caused by Malaysia's current inflation and provide more incentives for rubber production.

4 Important Factor that Affect Plantation Industry

The Malaysian plantation industry is influenced by various factors that determine its growth and development. Below are four key factors that affect the Malaysian plantation companies:

We are committed to addressing these factors through innovative practices and sustainable solutions.

Agricultural Policy

Malaysia's New Agricultural Policy (NAP) for 2021-2022 focuses on food security, particularly on enhancing improvements in the food processing sector.The policy framework for the NAP version 2.0 consists of eight main sections, including the policy statement, principles, objectives, policy thrusts, strategies, action plans, sub-sector strategies and sub-sector action plans. The policy principle is to promote a sustainable, resilient and technology-driven agri-food industry, while prioritising food security and nutrition.

In recent years, the Malaysian government has initiated the Rubber Industry Transformation Project, which aims to help increase the incomes of smallholder rubber farmers, reduce the financial burden of price increases due to Malaysia's current inflation, and provide more incentives for rubber production.

Environment and Climate Change

Located close to the equator, Malaysia has a tropical rainforest and tropical monsoon climate with low temperature fluctuations throughout the year, with average temperatures of 26-30°C and abundant rainfall. Climate change is likely to increase the frequency and intensity of extreme weather events such as droughts, floods and storms, which can damage crops and affect the stability of the agricultural industry.

Exchange Rate Fluctuation

Exchange rate fluctuations have more impacts on the Malaysian plantation industry. First, exchange rate fluctuations can affect the export prices and competitiveness of agricultural products such as Malaysian palm oil. If the Malaysian currency depreciates relative to the currencies of importing countries, the export price of Malaysian palm oil may become more attractive in the international market, which may increase export volumes and revenues.

On the contrary, if the Malaysian currency appreciates, export prices may increase, affecting the international competitiveness of its products. Secondly, exchange rate fluctuations may also affect the cost of production in the Malaysian plantation industry, especially those plantations that rely on imported raw materials and equipment. Notably, the Malaysian palm plantation industry is highly dependent on foreign labour, and exchange rate fluctuations may affect the inflow and outflow of foreign labour, which in turn may have an impact on the supply of labour for the plantation industry.

Supply and Demand

As Malaysia is a major producer of palm oil and China is a major importer of palm oil, the increase or decrease in its demand will directly affect the balance of supply and demand in the international market. According to the Indonesian Palm Oil Association (GAPKI), Indonesia's palm oil exports increased by 2.06% year-on-year in April, showing steady growth in market demand.

However, Malaysia's exports declined, falling by 8.1 per cent to 12.9 per cent month-on-month from 1 June to 20 June. Palm oil price volatility is not only influenced by supply and demand, but is also closely linked to competing edible oil prices, crude oil prices and global crop yields. When other vegetable oil futures fall, palm oil futures prices also come under some pressure.The Indonesian government increased export duties and special taxes on gross palm oil, creating a more favourable environment for Malaysian palm oil exports.

Malaysia, one of the leading producers of rubber gloves, has almost doubled its production of rubber gloves as a result of the global surge in demand for rubber gloves, which have become a necessity for medical and personal protective equipment. According to the China Rubber Industry Association (CRIA), exports from the Malaysian rubber industry reached RM21.84 billion in the first quarter of 2025, an increase of 169.6 per cent compared to the same period last year. This remarkable growth was mainly attributed to the export of rubber products such as rubber gloves, which grew by 265.7 per cent to RM17.86 billion. This reflects the increase in global demand, particularly for rubber gloves, which has contributed significantly to the export growth of the Malaysian rubber industry.

Top 6 Malaysian Plantation Companies and Stocks

Next, I will introduce the top six Malaysian Plantation Companies and Stocks for 2025 and explore the investment opportunities in the Malaysian share market. These companies are committed to purchasing all the fruits produced by small landholders, ensuring a stable market for their produce. How to buy stock in malaysia? To buy stocks in Malaysia, you can open a trading account with a licensed stockbroker. After opening the account and funding it, you can place buy orders for the Malaysian plantation stocks you're interested in through the broker's trading platform, and start exploring the investment opportunities in this dynamic market.

SD Guthrie Bhd（5285）

On the Malaysian share market, SD Guthrie Bhd formerly known as Sime Darby Plantation Bhd is a palm oil plantation company. It engages in planting, harvesting and milling of oil palm in Malaysia.

IOI Corp Bhd（1961）

On the Malaysian share market, IOI Corp Bhd is a palm oil production company. Its activities cover the entire chain from plantations to downstream refining and packaging of oil products.

Kuala Lumpur Kepong Berhad（2445）

On the Malaysian share market, Kuala Lumpur Kepong Berhad is the third largest palm oil producer in Malaysia. The group's core business is plantations. The company owns more than 250,000 hectares of plantations in Malaysia and Indonesia. Most of its revenue comes from its manufacturing division, which is involved in the production of oleochemicals, non-ionic surfactants, esters, rubber gloves, parquet flooring, pharmaceuticals, storage and distribution of bulk liquids, refining of palm products, kernel crushing and trading of palm products. Since the 1990s, the company has diversified into resource-based manufacturing, property development and retailing, with global operations.

Genting Plantations Bhd（2291）

On the Malaysian share market, Genting Plantations Bhd is engaged in plantations, property, agricultural technology (AgTech), downstream manufacturing and other businesses. In the plantation segment, GENP is mainly engaged in upstream activities related to oil palm plantations in Malaysia and Indonesia. The property segment includes property development and investment activities. The AgTech segment is engaged in genomics research and development. The Downstream Manufacturing segment includes the manufacture and sale of palm oil-based products.

United Plantation Berhad（2089）

On the Malaysian share market, United Plantation Berhad is primarily engaged in the cultivation and production of palm oil and rubber. United Plantation Berhad's operations include planting, harvesting, processing and marketing.

Sarawak Oil Palms Bhd（5126）

On the Malaysian share market, Sarawak Oil Palms Bhd is engaged in the cultivation, processing, refining and trading of palm products and operates palm oil mills in Malaysia, the Asia-Pacific region and internationally. Oil palm cultivation and the production of gross palm oil and palm kernel are the core business of Sarawak Oil Palms Bhd.

Why Choose Moomoo to Trade Plantation Stocks?

When it comes to trading plantation stocks in Bursa Malaysia, Moomoo stands out as an ideal platform for several compelling reasons.

Commission-Free Trading Advantage

One of the most enticing features of Moomoo is its offer of zero commission for Malaysia stocks, ETFs, warrants, and REITs. This means that traders can execute their trades without the burden of paying a percentage of their transaction value as commission.

Market-Leading Reputation

Moomoo holds the distinction of being the No.1 trading app in Malaysia. This achievement is a testament to its reliability, user - friendliness, and the quality of services it provides.

Robust Research and Analytical Tools

Beyond the zero-commission offer and market leadership, Moomoo provides a suite of advanced research and analytical tools. These tools are invaluable for traders looking to invest in plantation stocks.

Conclusion

The plantation companies in Malaysian stock market has shown significant growth potential for the year 2025, despite some stocks being undervalued at present. Opportunities to enter at these low points can pave the way for investors to reap substantial returns.

However, it's important to note that any investment decision should be made with caution, fully aware of the inherent volatility and risks of the stock market. While pursuing profits, it is essential to conduct thorough market analysis, taking into account economic conditions, industry trends, and the fundamentals of the companies. Adopting a wise investment strategy to respond to unpredictable market changes can help maximize investment returns while ensuring the safety of capital.