Sabah Palm Oil Industry Remains Relevant and Competitive

Ensuring that the palm oil industry remains relevant and competitive was the focus of a conference held in Kota Kinabalu on 28 October 2024. The theme of the World Palm Oil Conference 2024 was “Future-Proof The Palm Oil Industry - Enhancing Sustainability, Innovation and Growth.” Palm oil is Sabah’s most significant export commodity, contributing 22 per cent or RM6.22 billion to the state revenue from 2018 to 2023. In 2023, Sabah produced 4.5 million tonnes of crude palm oil (CPO) and is Malaysia’s largest CPO producer. The state has 128 mills, with a capacity of 34.7 million tonnes of fresh fruit bunches (FFB) annually. Oil extraction rate (OER) of 20.4 per cent is also ranked the highest in the country.

The conference was held at the Hilton Hotel. Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor was the Guest of Honour but was unable to attend. Datuk Seri Panglima Dr Jefffrey Kitingan, Deputy Chief Minister cum Minister of Agriculture, Fisheries and Food Industry, delivered the CM’s speech.

Hajiji said that it is in Sabah’s economic interest to be able to future-proof the palm oil industry, in view that Sabah is a leading producer in Malaysia’s palm oil industry. Sabah is already leveraging technology – including precision agriculture, mechanisation; and advanced pest management techniques - to enhance yields, boost productivity, and reduce the environmental footprint of palm oil production, Hajiji added.

The infrastructure industrial hubs are in place, namely, the Lahad Datu Palm Oil Industrial Cluster (POIC) which covers 4,400 acres; and the 2,810 acres Sandakan POIC. “Both POICs are strategically located near oil palm estates and resource-rich areas in the BIMP-EAGA (Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area). These hubs are key infrastructure for industrial development on Sabah’s east coast,” the CM said. “Sabah contributed 25.75 million tonnes of biomass from palm oil milling and plantation activities alone, providing tremendous opportunities in renewable energy and innovation.