The oil palm, from West Africa, has greatly contributed to the economy of Malaysia, especially in raising the living standards of the rural population. The crop has also helped satisfy the growing need for oils and fats by the ever-increasing world population. Nevertheless, the palm oil industry is now at the cross-roads, facing serious challenges in its declining yield brought on by issues such as climate change, shortage of labour and arable land. Modern biotechnology, which can differentiate between high performing and low performing palms in the nursery prior to field planting can help in addressing some of these challenges, especially by improving the crop’s productivity. This article relates the historical development of the industry in Malaysia, its contribution to the country’s economy and explores how science and technology are necessary for its long-term sustainable development. In line with this, a simple economic model demonstrates the feasibility of applying DNA testing to reduce low yielding non-tenera contamination in commercial fields.