01/08/2011 (Bernama) - Sabah earned RM13.56 billion in revenue from 5.136 million tonnes of palm oil produced last year, hence emerging as a leading agricultural force and an important contributor to the state's Gross Domestic Product, says Chief Minister Datuk Seri Musa Aman.

He said the palm oil sector, which was fundamentally strong and resilient, was also expected to contribute to state and national economic growth over the next decade as envisioned by the New Economic Model and the National Key Economic Areas.

"Sabah used to depend on timber but our economy has evolved to include agriculture, with focus on oil palm.

"Today, however, the scenario has completely changed. With 1.4 million hectares, Sabah has become the biggest oil palm state in the country, accounting 31 per cent of the country's palm oil output," he said at the Malaysian Palm Oil Board-Sabah's 10th anniversary dinner here Saturday night.

The text of his speech was delivered, on his behalf, by State Minister of Youth and Sports Datuk Peter Pang En Yin.

Musa said the state government was fully aware of problems and challenges faced by the industry.

"Immediately at home, taxes, levies and fees, and in more recent times, increase in fuel cost has considerably increased production costs.

"Labour shortage is another problem causing plantations to not be able to carry out regular field maintenance and harvesting," he said.

Musa hoped the opening of plantation jobs to nationals from countries other than Indonesia and the Philippines, as announced by the government last January, will provide temporary reprieve and lessen the shortage of harvesters.