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Analysis of the Use of Water in the Extraction of Palm Oil Industry in the
State Of Terengganu
Tuan Mohd Shahrizad bin Tuan Mahmud
Supervisor: Dr. Zuraini binti Anang
Bachelor of Economics (Natural Resources)
School of Social and Economic Development
This study is to evaluate the water use in the oil palm extraction industry in
Terengganu. This study identifies the relationship between Oil Extraction Rate (OER),
Crude Palm Oil (CPO), Fresh Fruit Bunch (FFB), Water Treatment Cost, and Crude
Palm Oil Production on Water Usage in palm oil extraction industry in Terengganu.
Data from 2014 to 2017 such as OER, PO, FFB, Water Treatment Cost and Crude Palm
Oil Production variables were collected from Felda Global Ventures (FGV) factory in
Chalok, Setiu. We used monthly data for 48 observations by using the Ordinary Least
Square (OLS). The result shows that the OER has a negative relationship at 5%
significance level, Palm Oil Production and FFB have a positive relationship at 5%
significance level. Meanwhile, we did not find evidence showing CPO, and Water
Treatment Costs had an impact on water use. However, we cannot exclude the
possibility that these two variables have a relationship, but cannot prove in this study.
1392 | UMT UNDERGRADUATE RESEARCH DAY 2018