By DayakDaily Team
KUCHING, Aug 11: Sarawak continues to strengthen its position as one of the main pillars of the country’s palm oil industry after recording the highest growth in crude palm oil (CPO) production in Malaysia in 2025, increasing 7.8 per cent from the previous year.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said Sarawak produced 4.50 million tonnes of CPO, equivalent to 22.2 per cent of the country’s total production.
She said productivity in Sarawak’s palm oil sector also showed positive development, with the oil extraction rate (OER) increasing from 19.37 per cent to 19.51 per cent, while fresh fruit bunch yield increased from 14.89 tonnes per hectare to 15.98 tonnes per hectare in 2025.
“This increase in productivity is a very positive development because ultimately, what is important is that these figures can translate into increased production and better returns for smallholders and plantation owners, especially given that palm oil prices remain strong at present,” she said in a speech text read out by Malaysian Palm Oil Board (MPOB) chairman Datuk Mohamad Helmy Othman Basha at the National Seminar on Palm Oil Milling, Refining, Environment, and Quality 2026 (POMREQ 2026) here today, as reported by TVS.
Noraini explained that increased productivity must be followed by efforts to strengthen value creation so that the benefits of industry growth can be enjoyed more widely.
“When productivity increases, we also need to strive to create greater added value. Ultimately, the growth of this industry must translate into more economic, investment and employment opportunities,” she said.
In terms of processing capacity, Sarawak has 84 palm oil mills with a capacity of 26.60 million tonnes per year, as well as six palm oil refineries with a capacity of 2.60 million tonnes per year.
Noraini said the scale of this ecosystem should be leveraged by accelerating the adoption of technology, including artificial intelligence (AI), big data analytics, the Internet of Things (IoT), digitalisation, and automation to improve the efficiency and competitiveness of the milling sector.
At the national level, Malaysia’s CPO production increased 4.9 per cent to 20.28 million tonnes in 2025, while Sarawak has 1.66 million hectares of oil palm planted area.
Together with Sabah, which has 1.50 million hectares of oil palm planted area, the two States account for 55.4 per cent of the country’s total oil palm planted area, underscoring the important role of East Malaysia in determining the direction of the country’s palm oil industry. — DayakDaily
