Kota Kinabalu: More than 30,000 smallholders in Sabah, covering over 191,000 hectares of plantation, have achieved the Malaysian Sustainable Palm Oil (MSPO) certification as of April 2025.
Chief Minister Datuk Seri Hajiji Noor said this represented a certification rate of 97.62 per cent, which is among the highest in the country.
“This achievement underscores our collective progress and the importance of continued collaboration between government agencies, industry players and smallholder communities,” he said at the East Malaysia Palm Oil Forum (EMPOF2025) at Marriott Hotel here Thursday.
His speech was read by Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.
The Chief Minister said that amid global pressure for deforestation-free supply chains, it was crucial for Malaysia to advance its certification and traceability efforts to maintain its continued recognition and credibility among key stakeholders, both domestically and internationally.
“In Sabah, we are making progress where about 97 per cent of the planted area and over 92 per cent in Sarawak are now certified under the MSPO. However, we must push toward 100 per cent inclusion, particularly for Independent Smallholders.
“We are fully cognisant of the challenges the industry faces. Meeting evolving global standards, ensuring environmental integrity and responding to market pressures demand proactive and innovative action,” he said.
In this respect, Hajiji said the State Government has adopted a transformative solution known as the Jurisdictional Approach for Sustainable Palm Oil (JASPO).
Launched in 2015, the JASPO initiative sets a bold target to achieve 100 per cent certified sustainable palm oil production across the entire State by 2030.
According to him, this approach is not merely administrative as it is a governance mechanism that allows all players in the palm oil value chain to work together under a unified framework.
“It aligns Sabah’s ambitions with national and international standards such as MSPO, RSPO and the EU Deforestation Regulation (EUDR), and ensures that no stakeholder is left behind, especially smallholders, who account for over 27 per cent of Sabah’s production,” he said.
Hajiji said Sabah has sustained its leadership with 1.48 million hectares under cultivation and annual output surpassing 4.2 million metric tonnes of crude palm oil (CPO).
He said that Sabah and Sarawak together accounted for over 55 per cent of the country’s total oil palm planted areas, which helped shape Malaysia’s standing as the world’s second-largest palm oil producer and a leading source of a sustainable and responsibly managed supply chain.
However, he added, this success story did not happen overnight, but it was the result of decades of hard work, resilience and collaboration across the supply chain from smallholders, millers, refiners to traders, researchers and policymakers.
“More importantly, it is a testament to our shared commitment to balancing economic development with environmental stewardship and social progress,” he said.
Nonetheless, Hajiji said it was not just about the story of hectares and tonnage, but it is, above all, a story of lives changed.
“Across Malaysia, the palm oil industry directly and indirectly sustains the livelihoods of more than 300,000 Malaysians and supports over 85,000 smallholders.
“Beyond economic figures, it has reshaped the rural landscape, bringing with it the vital infrastructure, from improved roads and schools to clinics and digital connectivity. Where opportunity was once scarce, there is now progress and the promise of a better future,” he said.
The Chief Minister is confident that through strategic investment, strong governance and continued engagement with stakeholders, the industry will continue to thrive and build a future-ready palm oil sector that benefits not only Malaysia but globally.
“Let us continue to collaborate and to champion innovation, uplift rural communities and preserve our environment so that the legacy we leave behind is not only one of economic progress but of impactful and meaningful progress for the generations to come,” he said.
