T h e emergence and dramatic growth o f the pa lm oil refining industry has been a remarkable achievement in the industrial deve lopment o f Malaysia. Exports o f processed p a l m oil (PPO) products f rom the industry grew at a c o m p o u n d e d rate o f about 25 per cent per a n n u m over the last two decades. Currently, the industry, with an estimated annual refining capacity o f about 1 1 - 1 2 million tonnes o f feedstock, processes about 8 - 9 million tonnes o f crude pa lm oil ( C P O ) and crude p a l m kernel oil ( C P K O ) yearly. This is an estimated 60 per cent share o f world refined p a l m oil products and about 10 per cent o f the major refined oils and fats.