ISSN: 2222-6990
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Oil palm cultivation is a major contributor to Malaysia’s agricultural economy and an important source of income for FELDA settlers. However, productivity levels among smallholders vary considerably, highlighting the need to identify the factors influencing production performance. This study examines the determinants of oil palm productivity among FELDA settlers and also identifies the most influential factor affecting the oil palm production in FELDA Tun Ghafar Kemendor, Melaka, Malaysia. A quantitative research design was employed, involving 100 active settlers selected from a population of 134 households. Data were collected through structured face-to-face interviews using a questionnaire. The data were analyzed using descriptive statistics, Spearman’s rho correlation, and multiple linear regression in IBM SPSS Statistics. The findings revealed that labour availability, fertilizer and input costs, and government support and extension services were positively and significantly associated with oil palm productivity. Among these factors, government support and extension services emerged as the strongest predictor of production performance, emphasizing the importance of institutional support in enhancing smallholder productivity. In contrast, land area did not have a statistically significant effect on productivity after controlling for other variables. This study concludes that strengthening extension services and institutional support is crucial for improving oil palm productivity among FELDA smallholders. Enhancing access to agricultural inputs and addressing labour constraints are also important for increasing production performance. These findings provide valuable insights for policymakers and plantation stakeholders in developing targeted strategies to improve productivity and promote sustainable oil palm production among smallholders in Malaysia.
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