Daily Express (25/01/2026) - CM Hajiji’s historical success in attracting investment [RM58 billion] has positioned Sabah to re-examine contributions by some investors like the following:

[1] Shell which I have written about last Sunday.

[2] Malayan oil palm companies which I am going to touch on in this article.

Sabah must put oil palm ownership by Malayan companies under the microscope.

Here are the legitimate reasons:

[1] Based on reports from the Malaysian Palm Oil Board (MPOB), Sabah has 3, 780,700 acres planted with oil palm.

Adding small plantations not registered with MPOB, the total acreage is estimated around 4,400,000 acres.

A satellite survey will give the most correct figure. This can be done very easily.

[2] The land taken up by oil palm cultivation is Sabah’s best and most fertile soil.

[3] Sabah has consistently been the top producer of CPO and kernel oil. (See table below).

[4] Sabah’s production of Malaysia’s oil palm is between 23% to 25%.

[5] Sabah has the best ideal climate and soil for oil palm. The extraction yield in Sabah has been consistently higher than the national average by about 2% and in all other states.

The Federal Government has praised Sabah’s contribution to the national GDP. It has done very little to develop the down-stream part for Sabah. 

A lot of words, useless words. Sabah has been short-changed very badly for far too long. Benefits from oil palm for Sabah is way short of what is fair for Sabah.

­For over 4 million acres of land, what does Sabah get from oil palm? Very little!!

Image 1: https://www.dailyexpress.com.my/uploads/features2/2026/01/Table1_2501.jpg

[1] Give or take about RM1 billion for Sabah’s revenue out of RM20 billion to RM25 billion [depending on price]. Oil palm is a very land demanding crop. Land is the most critical factor of production. 

[2] Very little employment as senior and lower management staff are from Malaya. Also, even some secretaries and clerks.

[3] Labour is from Indonesia. Huge remittance out of Sabah every month.

[4] Very little downstream, confined to CPO crushing and some basic refinery.

[5] Procurements, even for basic items, are from Malaya in containers.

[6] RM110 million in land revenue for Sabah. Very poor return in comparison to more than 4 million acres of Sabah’s best land devoted to oil palm. 

[7] Fertilizers are the largest inputs for oil palm. The factories are owned by Malayans.

[8] All the revenue/benefits from KLCE go to Federal.

[9] No research institution on oil palm in Sabah.

[10] Sabah, the biggest producer of CPO does not have a director at the MTOP board. Sabah has no say here. If there is justice, the chairmanship of MTOP should belong to Sabah. 

[11] Ultimate insult is Felda has privatized its plantation in Sabah. It is the biggest. No more Sabah settlers. In Malaya, Felda looks after their settlers from 1 generation to the next. 

[12] In spite of the bravados on Sabah’s oil palm industries, Sabahans have little benefits from it. Sandakan which has most of the largest oil palm plantations, remains depressed and dull. Main reason is that these oil palm companies from Malaya do not plough back any of their phenomenal profits to Sandakan. 

Conclusion: 

[1] Sabah is the biggest producer of CPO, little benefits and no say in the management and development of the oil palm industry. All policies, controls are in Malaya. 

[2] Returns on Sabah land of more than 4 million acres is little. We can do much better with this amount of land with the right investors and other crops like pineapples, vanilla, avocado and durians.

Image 2: https://www.dailyexpress.com.my/uploads/features2/2026/01/Table_2501.jpg

[3] Our future generations have no future in oil palm in the present system.

[4] Sabah is just a stooge. Sabah is at the mercy of MTOP and the large Malayan plantation companies. 

Who owns the oil palm plantations? And what acreage they control? (See table top)

[5] The above are the big boys. Most of other plantations slightly smaller and NTs [in the names of nominees] belong to Malayans.

[6] Estimated that Malayans own more than 90% of Sabah’s oil palm.

Sabah has not reviewed land assessment for 60 years. Long overdue!

[1] Under Sabah’s Land Ordinance, Sabah is entitled to review the land assessment every 15 years. But nothing has been done! Why?

[2] Critically urgent for Sabah to review and update land assessment for oil palm that will benefit Sabahans equitably.

[3] Sabah’s land assessment is dirt cheap from “RM0” to average of RM6 per year. 

Federal Government is the biggest beneficiary from Sabah’s oil palm.

A significant portion of the industry's value is taxed by the Federal Government rather than the State. 

[1] 3% Windfall Profit Levy (WPL).

[2] corporate income taxes paid by all plantation giants like Wilmar or Sime Darby directly to Putrajaya.

[3] Export tax of 10%.

[4] Enhancement of Malaysia’s foreign exchange and trade balance.

Sabah, as the landowner, should benefit more than Federal Government. 

Sabah must wise up to assertively derive equitable benefits from oil palm. Sabah’s vast wealth from oil palm is enriching outsiders and keeping Sabahans poor.

[1] Sabah’s records are nothing short of being silly. 

[a] Many of Sabah’s leaders have been irresponsible in their management of the resources with no idea of sustainability.

[b] Many leaders have exploited Sabah’s resources for self-enrichment. In the case oil palm, leaders have sold land to Malayan companies cheap.

[2] Many leaders have been in collusion outsiders to exploit Sabah’s resources.

[3] Implement “carrot or stick” approach to encourage the big plantation companies to plough back their billions of profits each year to down stream and/or value-added industries.

[4] Implement 2-tier sales tax and land assessments. Favourable one for companies that go down stream and employ Sabahans. Higher rates for those companies that do not or refuse to comply. 

[5] Impose stringent terms and conditions on all renewals of tenure for all large oil palms companies including provision for land for Sabahan small holders and for food production.

Do not worry about complains from the big oil palm companies from Malaya.

In fact, Sabah should welcome it. This should be cause for celebration.

Indonesia has been cracking down on Malayan oil palm companies including seizures/repossessions of land, imposing very hefty fines and investigations. Some of these companies: Wilmar, Genting, IOI, Guthrie, KLK, TDM. 

By the end of 2025, the government has seized and reclaimed 1.7 million hectares (4.2 million acres) of oil palm plantations and has already transferred them to the state-owned firm PT Agrinas Palma Nusantara, making it the world's largest palm oil company by land area.

They have got the land very cheaply in Sabah, some for as low as RM50 per acre. Now land is about RM30,000 to RM50,000 per acre.

They have made billions and billions in the last 30 years or more.

Their major shareholders have gotten billions more for the enhancement of their shares in KLSE.

Sabah should welcome Malayan companies which may wish to give up their land. Sabah can lease it out for other crops that can give better returns. No shortage of investors.

In the final analysis, Sabahans must remember the cost of pollution from oil palm plantations. Sabah may have to spend billions to clean up the pollution mess from these companies.

For the billions that these Malayan companies have made from Sabah, no assistance from any of them when Sabah was suffering from Covid and floods. To them, Sabah is a gold mine. That is how they treat Sabah. Sabahans? Not important. 

Sabahans better wake up to reality. Be assertive to fight for “Sabah for Sabahans.” 

Read more at https://www.dailyexpress.com.my/read/6468/oil-palm-enriching-others-not-sabahans/