By WU VUIDE
KOTA KINABALU: More than 30,000 smallholders in Sabah with over 191,000 hectares of plantations have achieved Malaysian Sustainable Palm Oil (MSPO) certification as of April 2025.
Chief Minister Datuk Seri Hajiji Noor said this represented a certification rate of 97.62 per cent, among the highest in the country.
“This achievement underscores our collective progress and the importance of continued collaboration between government agencies, industry players and smallholder communities,” he said at the East Malaysia Palm Oil Forum (EMPOF2025) here.
Hajiji’s speech was delivered by Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.
He said that amid global pressure for deforestation-free supply chains, it was crucial for Malaysia to strengthen certification and traceability efforts to gain recognition and credibility among key stakeholders both locally and internationally.
“In Sabah, we are making progress with 97 per cent of the planted area and over 92 per cent in Sarawak now certified under the MSPO. However, we must push toward 100 per cent inclusion for independent smallholders.
“We are fully aware of the challenges the industry faces. Meeting evolving global standards, ensuring environmental integrity and responding to market pressures demand proactive and innovative action,” he said.
In this respect, Hajiji said the State Government has adopted a transformative solution known as the Jurisdictional Approach for Sustainable Palm Oil (JASPO).
Launched in 2015, JASPO sets a target to achieve 100 per cent certified sustainable palm oil production across the entire state by 2030.
According to him, this approach is not merely administrative but a governance mechanism that allows all players in the palm oil value chain to work together under a unified framework.
“It aligns Sabah’s ambitions with national and international standards such as MSPO, RSPO and the EU Deforestation Regulation (EUDR), and ensures that no stakeholder is left behind, especially smallholders, who account for over 27 per cent of Sabah’s production,” he said.
Hajiji said Sabah has sustained its leadership with 1.48 million hectares under cultivation and annual output surpassing 4.2 million metric tonnes of crude palm oil (CPO).
He said Sabah and Sarawak together accounted for more than 55 per cent of the country’s total oil palm planted areas, helping shape Malaysia’s standing as the world’s second-largest palm oil producer and a leading source of sustainable and responsibly managed supply chains.
However, this success did not happen overnight but was the result of decades of hard work, resilience and collaboration across the supply chain from smallholders, millers, refiners and traders to researchers and policymakers, he said.
“More importantly, it is a testament to our shared commitment to balancing economic development with environmental stewardship and social progress,” he added.
Hajiji stressed that it was not just about hectares and tonnage, but above all, a story of lives transformed.
“Across Malaysia, the palm oil industry directly and indirectly sustains the livelihoods of more than 300,000 Malaysians and supports over 85,000 smallholders.
“Beyond economic figures, it has reshaped the rural landscape, bringing vital infrastructure such as roads, schools, clinics and digital connectivity. Where opportunity was once scarce, there is now progress and the promise of a better future,” he said.
He expressed confidence that through strategic investment, strong governance and continued engagement with stakeholders, the industry would continue to thrive and build a future-ready palm oil sector that benefits Malaysia and the world.
“Let us continue to collaborate, champion innovation, uplift rural communities and preserve our environment so that the legacy we leave is not only one of economic progress but also of meaningful progress for generations to come,” he said.
