KOTA KINABALU: The State Government is committed to future-proofing the palm oil  industry, which is Sabah’s most significant export commodity, contributing 22 per cent  or RM6.22 billion to the state revenue from 2018 to 2023. 

Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said Sabah, as a powerhouse  in Malaysia’s palm oil industry, is aware of the challenges to ensure the industry remains  relevant in the future.  

“Hence, the government needs to be ready and must introduce innovative approaches  to help the industry achieve and meet the national and international certification  requirements,” he said at the World Palm Oil Conference 2024 - “Future-Proof The Palm  Oil Industry - Enhancing Sustainability, Innovation and Growth” at the Hilton Hotel here  today. 

Deputy Chief Minister/Agriculture, Fisheries and Food Industry Minister Datuk Seri  Panglima Dr Jefffrey Kitingan delivered the Chief Minister’s speech. 

“As we look to the future, innovation and sustainability must remain at the heart of our  efforts. Sabah is already leveraging technology to boost productivity and reduce the  environmental footprint of palm oil production,” he said. 

Hajiji said precision agriculture, mechanisation, and advanced pest management  techniques were among the innovations being implemented to enhance yields and  sustainability.  

In 2023, he said Sabah produced 4.5 million tonnes of crude palm oil (CPO) and  remained the largest CPO producer in the country due to superior fruit yields and oil  extraction rates.  

“We operate 128 mills across the state, with a capacity to process up to 34.7 million  tonnes of fresh fruit bunches (FFB) annually. Our oil extraction rate (OER) of 20.4 per  cent is the highest in the country. 

“Our industrial hubs are critical to sustaining this growth. The Sabah Government owns  the Lahad Datu Palm Oil Industrial Cluster (POIC) on the east coast of Sabah, which  covers 4,400 acres. It supports light, medium, and heavy industries.  

“The POIC has specialised ports for bulk cargo, liquid cargo, and containers. These ports  are located in a naturally deep harbour, capable of accommodating large cargo vessels,”  he said. 

In addition, the Chief Minister said the 2,810 acres Sawit POIC in Sandakan, also on  Sabah’s east coast under Sawit Kinabalu Sdn Bhd management, was designed to  encourage investments in downstream palm oil manufacturing.  

“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,” he  said. 

Hajiji said Sabah’s palm oil industry has a pivotal role in reducing greenhouse gas  emissions and supporting Malaysia’s goal of achieving net-zero emissions by 2050 in  line with the National Energy Transition Roadmap. 

Sabah contributed 25.75 million tonnes of biomass from palm oil milling and plantation  activities alone, providing a tremendous opportunity for renewable energy and  innovation last year.  

“We introduced the Oil Palm Biomass Industry policy earlier this year that will soon  regulate biomass export and production, ensuring that Sabah benefits from this valuable  resource. 

“We are confident that with strategic collaboration between the public and private  sectors, we can further position Sabah as a global leader in sustainable palm oil  production,” he said. 

The Chief Minister also called upon all stakeholders, investors, businesses, and  policymakers to join the State Government in making Sabah the global hub for  sustainable palm oil production.  

“By investing in downstream processing, adopting advanced technologies, and  upholding the highest sustainability standards, we can ensure that this vital industry  continues to thrive while contributing to a greener, more prosperous future for all,” he  said. 

Ends