This article studies the Malaysian palm oil industry, tracing the industry from the oil palm plantations and ending to its finished products. Palm oil industry is a prominent industry in Malaysia, creating economic growth and development. For instance, the government helped roughly 90,000 low-income settlers with their families to become oil palm tree plantation owners. Furthermore, Malaysia has the industries to manufacture a variety of palm oil products that Malaysia exports. Palm oil exports comprised 13.7% of its gross domestic product. Subsequently, the exports cause a significant inflow of foreign-currency earnings. Moreover, Malaysia has the industries to produce biodiesel and fully offset its transportation diesel market with plenty of biodiesel and palm oil left over to export. Unfortunately, the Malaysian government had encountered two obstacles hindering the large-scale manufacture of palm biodiesel. First, the Malaysian government heavily subsidizes its transportation fuels, giving Malaysians the cheapest gasoline and diesel fuels in the world. Second, Malaysia has confronted import barriers from the European Union and the United States. U.S. Environmental Protection Agency ruled against the palm oil biodiesel, as a renewable fuel import because its lifecycle emissions are below the 20% threshold. Furthermore, the European Union imposed tariffs on Malaysian palm biodiesel, possibly protecting its rapeseed biodiesel industry from competition.