Malaysia’s Coconut Oil Industry Malaysia is one of the top producers of coconut oil in the world, with an estimated production of 2.5 million metric tons per year. The country’s coconut industry has been growing steadily over the years, thanks to the demand for coconut-based products such as coconut oil, desiccated coconut, and coconut water. The coconut tree is known in Malaysia as the “tree of life” because of its numerous uses.