Elaeis guineensis originated in Guinea, Africa and was first illustrated by Nicholaas Jacquin in 1763. Oil palms were introduced to Java by the Dutch in 1848, and to Malaysia (then the British colony of Malaya) in 1910 by Scotsman William Sime and English banker Henry Darby. The species of palm tree Elaeis guineensis was taken to Malaysia from Eastern Nigeria in 1961. As noted it originally grew in West Africa. The southern coast of Nigeria was originally called the Palm oil coast by the first Europeans who arrived there and traded in the commodity. This area was later renamed the Bight of Biafra.
In traditional African medicine different parts of the plant are used as laxative and diuretic, as a poison antidote, as a cure for gonorrhea,menorrhagia, and bronchitis, to treat headaches and rheumatism, to promote healing of fresh wounds and treat skin infections.
In Malaysia, the first plantations were mostly established and operated by British plantation owners, such as Sime Darby and Boustead, and remained listed in London until the Malaysian government engineered their "Malaysianisation" throughout the 1960s and 1970s.
Federal Land Development Authority (Felda) is the world's biggest oil palm planter, with planted area close to 900,000 hectares in Malaysia and Indonesia. Felda was formed on July 1, 1956 when the Land Development Act came into force with the main aim of eradicating poverty. Settlers were each allocated 10 acres of land (about 4 hectares) planted either with oil palm or rubber, and given 20 years to pay off the debt for the land.
After Malaysia achieved independence in 1957, the government focused on value-added of rubber planting, boosting exports, and alleviating poverty through land schemes. In the 1960s and 1970s, the government encouraged planting of other crops, to cushion the economy when world prices of tin and rubber plunged. Rubber estates gave way to oil palm plantations. In 1961, Felda's first oil palm settlement opened, with 3.75 km² of land. As of 2000, 6855.2 km² (approximately 76%) of the land under Felda's programmes were devoted to oil palms. By 2008, Felda's resettlement broadened to 112,635 families, who work on 8533.13 km² of agriculture land throughout Malaysia. Oil palm planting took up 84% of Felda's plantation landbank.
FELDA's success led to the establishment of other development schemes to support the establishment of small-farmer oil palm cultivation. The Federal Land Consolidation and Rehabilitation Authority (FELCRA) was established in 1966 and the Sarawak Land Consolidation and Rehabilitation Authority (SALCRA) was formed in 1976. The primary objective of these organizations is to assist in the development of rural communities and reduce poverty through the cultivation of high yielding crops such as palm oil.
As of November 2011, SALCRA had developed 18 estates totalling approximately 51,000 hectares. That year the organization shared dividends with 16,374 landowners participating in the program.