In the 1960s, Malaysia planted oil palm on a large scale. In the 1970s, it became the world's largest producer and exporter of palm oil. To further explore the development prospects of the oil palm industry in Malaysia, this paper first introduced the development of oil palm in Malaysia, and analyzed the world's share of Malaysian oil palm harvested area, production, yield during 1980 and 2016. The results showed that the oil palm harvested area in Malaysia reached the peak value 5.23 million ha in 2013; the yield of oil palm fruit reached the peak value 98.34 million t in 2015; the yield of oil palm fruit fluctuated between 14-20 t/ha; the ratio of Malaysian oil palm yield to world oil palm production reached its peak 51.99% in 1989. Therefore, Malaysia should update the old oil palm plantation. The development of oil palm harvested area and yield has reached the peak value, it is difficult to increase the harvested area. The proportion of Malaysian oil palm industry to the world oil palm industry is constantly declining. In future, the per unit area yield of Malaysian fresh oil palm fruit is expected to reach a new peak, and fresh oil palm fruit will exceed 20 t/ha.