19/08/2026 (The Borneo Post), Bintulu - Sarawak’s palm oil industry must focus on improving productivity and maximising the value of existing resources instead of relying solely on expanding planted areas, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said the industry needed to improve efficiency, reduce waste and emissions, strengthen traceability and adopt better technologies to remain competitive in increasingly demanding international markets.

“Sustainability must no longer be viewed simply as an additional cost or another layer of compliance.

“Sustainability must become part of the industry’s business strategy,” he said in a speech read by State Minister of Food Industry, Commodity and Regional Development Dato Sri Dr Stephen Rundi Utom during the Soppoa Sustainable Palm Oil Forum (SPOF) 2026 here.

Abang Johari said sustainability was no longer merely an environmental issue or regulatory requirement, but had increasingly become fundamental to how industries compete, attract investment, access international markets and create long-term value.

According to the latest Malaysian Palm Oil Board (MPOB) statistics cited by him, Sarawak had about 1.66 million hectares of oil palm planted area in 2025, representing about 29 per cent of Malaysia’s total planted area.

In the same year, Sarawak produced approximately 4.5 million tonnes of crude palm oil, an increase of about 7.8 per cent from 2024.

At the national level, Malaysia produced about 20.28 million tonnes of crude palm oil in 2025, while exports of palm oil and palm-based products generated about RM112.6 billion.

“These figures demonstrate that Sarawak is not a small participant in the Malaysian palm oil industry.

“We are an important contributor to national palm oil production and, by extension, to Malaysia’s position as one of the world’s leading palm oil producing and exporting countries,” he said.

Abang Johari said the larger the industry became, the greater the responsibility to ensure its growth was responsible, sustainable and beneficial to Sarawakians.

He said this was in line with Sarawak’s broader economic transformation under the Post Covid-19 Development Strategy (PCDS) 2030, which emphasises productivity, downstream development, modernisation, digitalisation and sustainable growth.

“Our ambition is not simply to produce more. Our ambition is to produce better, create more value and ensure that economic development benefits our people,” he said.

Abang Johari said the palm oil industry must move beyond simply asking how to comply with sustainability requirements and instead consider how sustainability could make it more competitive.

He said global markets were becoming increasingly demanding, with consumers seeking greater transparency, buyers requiring traceability and financial institutions placing greater consideration on environmental, social and governance (ESG) factors.

“At the same time, international markets continue to strengthen requirements relating to deforestation, carbon emissions, biodiversity and responsible sourcing,” he said.

Abang Johari said the forum’s theme, ‘Leading Sustainability: Compliance, Risk and Opportunities’, was particularly timely given the changing operating environment faced by the industry.

He said the industry must comply with standards and requirements expected by international markets while also identifying and managing risks.

These included labour availability, rising production costs, climate-related risks, supply chain disruptions, geopolitical uncertainties, market volatility and increasing sustainability expectations.

“But at the same time, every challenge presents an opportunity,” he said.

Abang Johari said the industry could invest in mechanisation and automation, improve productivity, diversify markets, strengthen supply chains, adopt better data systems and develop new products.

“The industry must therefore move from a mindset of ‘How do we comply?’ towards ‘How do we use sustainability to become more competitive?’” he said.

He said Sarawak must strike the right balance between economic development, environmental protection and social well-being.

“We must continue to develop our palm oil industry, but we must do so responsibly,” he said.

https://www.theborneopost.com/2026/08/19/premier-sarawak-palm-oil-industry-must-focus-on-productivity-value-creation/