Sarawak pledges stronger collab with industry players to sustain palm oil’s global competitiveness
19/09/2025 (Borneo Post Online), Kuching - The Sarawak government has pledged to strengthen its collaboration with industry players to ensure the palm oil sector remains both competitive and sustainable.
This commitment was underscored by the Permanent Secretary to the State Ministry of Food Industry, Commodity and Regional Development, Datu Sirai Daha, at the inaugural Sarawak Oil Palm Plantation Owners Association (Soppoa) Government Engagement Forum 2025.
Addressing attendees at the hotel event here yesterday, Sirai emphasised the industry’s critical roles as a primary driver of the state’s economy.
“The ministry recognises the vital role of the palm oil industry in Sarawak, which is too important to be left without constant dialogue and cooperation,” he said.
He highlighted the adherence to international certification standards like the Malaysian Sustainable Palm Oil (MSPO) and the Roundtable on Sustainable Palm Oil (RSPO) is now essential for maintaining access to major global markets.
He also pointed to stringent regulations like the European Union Deforestation Regulation (EUDR), which requires producers to provide clear evidence that their operations are not linked to deforestation.
“At the same time, investors and consumers are measuring performance against environmental, social and governance (ESG) benchmarks,” he added, urging producers to balance economic growth with sustainability and prioritise worker welfare.
“The government remains committed to ensuring that the industry prospers while upholding the highest standards of environmental stewardship and social responsibility,” he emphasised.
Meanwhile, Soppoa chairman Joseph Blandoi highlighted the sector’s immense economic contribution, revealing that palm oil exports reached RM16.3 billion in 2024, accounting for 14 per cent of Sarawak’s total exports and positioning it as the state’s second- largest export earner after liquefied natural gas (LNG).
“This means palm oil has now overtaken crude oil,” he explained.
However, Joseph detailed the increasingly complex challenges threatening this success.
He cited rising labour costs, increased mandatory Employees Provident Fund (EPF) contributions, and international trade barriers like the European Union Deforestation Regulation (EUDR) as significant pressures.
“Labour shortages remain a critical issue. Despite advances in mechanisation, harvesting is still highly dependent on manual workers,” he said.
“Delays in harvesting would not only reduce yields but also cause significant revenue losses,” he explained, expressing hope that the forum would serve as a platform for policy updates, open dialogue, and practical problem-solving.
“It is not enough to raise issues. We must also propose realistic and pragmatic solutions,” he pointed out.
He concluded by thanking the ministry and government agencies for their support, reiterating Soppoa’s role as a vital bridge between planters and policymakers to advocate for sustainable growth.
The one-day forum gathered representatives from various agencies for discussions covering labour and immigration, environmental compliance, water catchment management, social security, and workers’ welfare.