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Once a sleepy fishing port, Kunak now leads Sabah’s bio-innovation wave — transforming palm oil byproducts into global health treasures.
By Mihar Dias October 2025
If you’ve ever driven through Kunak, you’d remember it as a quiet coastal town tucked between Lahad Datu and Semporna — a place where time slows down and the sea still shapes daily life. Back in 2010, it had a population of about 20,000. Fifteen years later, it’s bigger, busier, but still known mainly for fishing and palm oil.
Now, that’s about to change.
A Bold Downstream Gamble
In a move that could transform both Kunak and Sabah’s industrial landscape, Sawit Kinabalu Group — the state-owned palm oil conglomerate — has teamed up with private investors to build Kunak Lipids Sdn Bhd, a factory dedicated entirely to producing tocotrienols for the world market.
This is not just another palm oil mill. Sawit Kinabalu has invested a sizeable sum in this downstream venture, choosing to move beyond exporting raw crude palm oil to focus on high-value products that stay competitive in global health and nutraceutical industries.
The plant aims to produce 25 tonnes of tocotrienols annually, using Palm Fatty Acid Distillate (PFAD) — a byproduct of palm oil refining. What used to be waste is now being turned into a premium vitamin E compound prized for its antioxidant and neuroprotective properties.
Sabah’s New Industrial Frontier
Neighbouring Sarawak has been producing tocotrienols for years, but mostly as a byproduct of biodiesel. Kunak Lipids, however, is pioneering a dedicated extraction process — focusing exclusively on tocotrienols as its main output.
This makes Kunak a first mover in Sabah’s palm oil downstream transformation — proof that the state can go beyond plantation and crude exports to compete in the world of bio-innovation.
Tocotrienols are gaining ground globally for their role in heart and brain health, skincare, and functional nutrition. If Kunak Lipids captures even a small slice of that market, it could spark new jobs, investments, and pride for the local community.
From Fishing Nets to Laboratory Flasks
Kunak’s story is shifting — from a hardworking coastal town to a hub of innovation.
Some locals are already drawing comparisons to Hershey, Pennsylvania, a small American town that became world-famous for chocolate. Could Kunak do the same with tocotrienols? It’s not an impossible dream.
Discussions with MyIPO (Malaysian Intellectual Property Corporation) have revealed the potential for Geographical Indication (GI) branding — meaning that one day, “Kunak Tocotrienols” could be a globally recognised mark of origin and quality, much like Sabah Tea or Sarawak Pepper.
Imagine driving into Kunak and seeing its iconic roundabouts — still decorated with sculptures of prawns and fish — joined by a new landmark: a shining molecular symbol of tocotrienols, celebrating the town’s scientific leap forward.
The City of Tocotrienols
Kunak’s transformation isn’t just about business — it’s about redefining Sabah’s industrial identity. With Sawit Kinabalu’s leadership, private-sector collaboration, and a commitment to sustainability, Kunak is proving that small towns can dream big — and make those dreams real.
So here’s to Kunak — the little town that looked beyond the sea and the palms, and found its future in science.
Kunak — The City of Tocotrienols.
Fast Facts: Kunak Tocotrienols
• 📍 Location: Kunak, East Coast of Sabah, Malaysia
• 🏭 Developer: Kunak Lipids Sdn Bhd (subsidiary of Sawit Kinabalu Group)
• 💰 Investment: Multi-million ringgit downstream facility
• ⚗️ Feedstock: Palm Fatty Acid Distillate (PFAD)
• 📈 Capacity: 25 tonnes of tocotrienols per year
• 🌍 Market Focus: Nutraceuticals, supplements, and skincare
• 🏅 Potential GI Branding: “Kunak Tocotrienols” (under MyIPO)
• 🚀 Vision: To make Kunak Sabah’s first bio-innovation hub
Editor’s Note
Kunak Lipids’ tocotrienol project supports Sabah’s Industrial Development and Investment Blueprint 2030, which calls for a stronger downstream palm oil sector focused on sustainability, innovation, and global competitiveness. The initiative signals Sabah’s next step — from resource exporter to creator of high-value palm-derived products for the world.
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