In the past, Malaysia’s coconut sector faced several difficulties and upheavals related to the economy. However, as a result of the EU’s decision to oppose the cultivation of palm oil due to worries about forest clearing and environmental damage, the business has recently demonstrated enormous potential to be further grown and improved. Thus, this systematic review aimed to synthesize the challenges associated with the level of coconut production and its supply chain. Six electronic databases were searched for publication from 2013 to 2022 (i.e., a cumulative index to give an overview of the coconut value chain and the literature on the coconut supply chain via Scopus, the Web of Science, Google Scholar, Proquest, Science Direct, and Springer Link). Titles/abstracts and then full texts were screened independently. It was discovered that the factors contributing to the low production of coconuts and the difficulties in the coconut supply chain were categorized by some authors as severe or apparent factors, while others categorized these problems as technological, political, or socioeconomic factors, and yet others categorized them as inherent or environmental factors. Therefore, policymakers should introduce some policies such as subsidies, free tax for farmers, farm settlement schemes e.t.c that would encourage more citizens to be willing to go into coconut production. Policymakers also need to encourage scientists to carry out research on how these problems especially environmental factors will be tackled and try to recruit more extensionists.