Sabah leads in sustainable palm oil with 97pct MSPO certification

KOTA KINABALU (Aug 21): Around 97 per cent of oil palm plantation smallholders in Sabah have received Malaysian Sustainable Palm Oil (MSPO) certification, among the highest rates in the country.

Chief Minister Datuk Seri Hajiji Noor said as of April this year, the certification covers more than 30,000 smallholders and over 191,000ha of plantation land.

He stressed that amid global pressure for deforestation-free supply chains, advancing certification and traceability is vital for Malaysia to maintain credibility and recognition among key stakeholders.

“In Sabah, we are making progress, with about 97 per cent of the planted area and over 92 per cent in Sarawak certified under MSPO. However, we must push toward 100 per cent inclusion, particularly for independent smallholders,” he said at the East Malaysia Palm Oil Forum (EMPOF2025) here today.

His speech was delivered by State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.

Hajiji said the state government has adopted the Jurisdictional Approach for Sustainable Palm Oil (Jaspo), launched in 2015, with the goal of achieving 100 percent certified sustainable palm oil production statewide by 2030.

“Jaspo aligns Sabah’s ambitions with national and international standards such as MSPO, the Roundtable on Sustainable Palm Oil (RSPO), and the EU Deforestation Regulation (EUDR). It ensures that no stakeholder is left behind, especially smallholders, who account for over 27 percent of Sabah’s production,” he said.

Sabah currently has 1.48 million hectares under cultivation, with annual output exceeding 4.2 million metric tonnes of crude palm oil (CPO). Together with Sarawak, the two states account for more than 55 percent of Malaysia’s total oil palm planted areas, cementing the country’s position as the world’s second-largest palm oil producer.

Hajiji noted that the industry supports the livelihoods of more than 300,000 Malaysians and over 85,000 smallholders nationwide, while also reshaping rural areas through infrastructure such as roads, schools, clinics and digital connectivity.

Meanwhile, Malaysian Palm Oil Council (MPOC) chief executive officer Belvinder Sron highlighted that Malaysia’s CPO production reached 19.3 million tonnes last year, with East Malaysia contributing 43.7 percent, or 8.4 million tonnes.

Within East Malaysia, Sabah led with 4.3 million tonnes or 22.1 percent of Malaysia’s total output, while Sarawak contributed 4.1 million tonnes or 21.6 percent.

However, Belvinder noted that production has stagnated since peaking at 19.9 million tonnes in 2017, due to shrinking mature areas, ageing trees, labour shortages and weather disruptions.

“Looking ahead, accelerating replanting is crucial. We need to raise replanting rates to four to five percent annually,” she said.

Bursa Malaysia Derivatives Berhad director Mohd Saleem Kader Bakas said EMPOF’s return reflects East Malaysia’s growing role in the palm oil sector.

He noted that Sabah has recorded over RM100 billion in annual trade over the past three years, with palm oil as a major contributor.

“This underscores the sector’s importance to the state’s economy and its impact on rural livelihoods. Sabah continues to lead not only in production, but also in sustainability and conservation efforts,” he said.

Saleem added that Jaspo unites smallholders, mills, NGOs, buyers and local authorities to promote sustainability across the supply chain, citing conservation work such as biologist Farina Othman’s collaboration with farmers to protect Bornean elephants as proof that agriculture and conservation can coexist.

“Together, these initiatives reflect Sabah’s commitment to a more sustainable and inclusive palm oil industry,” he said.