By Tedong Rantayy
MIRI, Feb 19: The Sarawak government is taking a careful approach to land utilisation for palm oil plantations by limiting the issuance of new provisional leases (PL), Minister for Food Industry, Commodity and Regional Development Datuk Seri Dr Stephen Rundi Utom says.
Speaking today at the closing of the Palm Oil Management, Technology, Exhibition and Conference (Pomtec) 2025 in Miri, Dr Rundi said the ministry is not issuing new PLs at the moment.
“We are wary about the European Union’s deforestation policies, which affect not just oil palm but also rubber, cocoa, and pepper plantations.”
Responding to questions from the media about whether any new land has been allocated for plantations, Dr Rundi emphasised the importance of protecting Native Customary Rights (NCR) land.
“About 1.6 million hectares of land have already been planted, and people are benefiting from this.
“However, we hope NCR land can still be utilised to support rural communities. This is crucial for improving their economic well-being and lifting them out of poverty,” he added.
Dr Rundi also highlighted the ongoing challenges posed by international regulations such as those from the EU.
“If these policies restrict us further, it will harm rural economies. It’s not just Malaysia; Indonesia and even Canada are facing similar battles to ensure the survival of their industries,” he stated.
The palm oil sector remains a significant contributor to Malaysia’s economy, generating over RM1 billion in revenue last year.
Dr Rundi underscored the importance of the industry’s value chain, which benefits not only large players but also smallholders.
“Smallholders are enjoying substantial returns from oil palm. This is the only complete value chain we have for them,” he explained.
The Minister also noted the need to diversify agricultural industries, highlighting fruits such as durian and rambutan, but stressed that palm oil remains vital for creating sustainable industries.
“Our ministry’s mission is to create industries that benefit the people. We hope major players in the sector will support us in achieving this goal,” he concluded.
The palm oil industry in Malaysia has faced increasing pressure from international markets, particularly due to concerns about deforestation and environmental sustainability.
The EU’s deforestation regulations, aimed at reducing imports linked to forest degradation, have placed additional scrutiny on Malaysia and Indonesia, the world’s top palm oil producers.
As Malaysia balances economic growth with environmental commitments, the future of land allocation and plantation development remains a critical issue for policymakers. – DayakDaily
