Develop Sabah’s downstream palm oil industry for higher-value products, job opportunities, Tuaran MP tells Putrajaya
04/11/2026 (The Borneo Post), Kota Kinabalu - Tuaran MP Datuk Seri Panglima Wilfred Madius Tangau has urged the federal government to step up efforts to develop Sabah’s downstream palm oil industry to generate higher-value products, business opportunities and jobs for locals.
Speaking during the committee-stage debate on Budget 2027 for the Ministry of Plantation and Commodities in the Dewan Rakyat today, he said Sabah had significant potential to utilise oil palm biomass and crude palm oil (CPO) to produce high-value industrial materials.
“We want these materials to be processed in Sabah into high-value products, creating businesses and providing employment opportunities for our children,” he said.
He proposed closer collaboration between the ministry, Sabah government, Ministry of Investment, Trade and Industry (MITI) and POIC Lahad Datu to attract investment, secure technology and develop markets for downstream products.
Among the opportunities he highlighted was processing oil palm cellulose into fibres, fabrics, and textiles, as well as advanced materials such as nanocellulose.
He urged the ministry and Malaysian Palm Oil Board (MPOB) to support pilot projects and link technology owners with investors and industrial buyers to assess production costs, product quality and market potential.
Madius also sought details on the RM100 million hybrid financing scheme under Budget 2027 to assist 4,500 smallholders with oil palm replanting, particularly the allocation for Sabah and the number of beneficiaries expected from the state.
He said smallholders cultivating Native Customary Rights (NCR), untitled or unsurveyed land should not be excluded from assistance due to land documentation issues, urging the ministry to establish a verification mechanism with the Sabah Lands and Surveys Department.
He also called for temporary income assistance during the replanting period, higher grant support for low-income smallholders and marketing assistance for alternative crops.
Separately, Madius urged the ministry to consider funding to upgrade the Linsuk–Gomoron road in Tuaran, which cuts through a company-owned oil palm plantation and serves several villages.
He said the poorly maintained road had inconvenienced residents and affected plantation activities, calling for a site inspection and discussions with the company and relevant agencies to determine funding and maintenance responsibilities.
He hoped the road would be prioritised under the 2027 development plans.