LAHAD DATU: The government calls on all smallholders to fully utilise the facilities, incentives and support from both state and federal government which will help the smallholders to grow.
Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin said, the government is committed to assist the smallholders to face the challenges in the palm oil industries including criticism and negative perceptions which have impacted the Malaysian palm oil image and market.
He said, to address this matter, the government has introduced the MSPO certification programme through Malaysian Palm Oil Board (MPOB) as a proactive measure to ensure Malaysian palm oil production adheres to sustainable, ethical, and meets the international standards.
window.googletag = window.googletag || {cmd: []};googletag.cmd.push(function() {googletag.defineSlot('/22826383987/dailyexpress_inline', [1, 1], 'gpt-passback').addService(googletag.pubads());googletag.enableServices();googletag.display('gpt-passback');});“The MSPO programme is part of the government’s strategy to engage directly with smallholders, especially in Sabah, providing them with crucial information and support regarding sustainable practices and available incentives.
“The implementation of this programme not only to meet the market demands, but provides benefits to smallholders such as promoting Good Agricultural Practices (GAP), environmental conservation, and improved yields leading to higher incomes,” he said.
Chan said this at the Lahad Datu MSPO programme at MPOB Lahad Datu, on Monday.
According to Chan, as of March 31, 2025, 97.62 percent of smallholders in Sabah, totalling 30,768 individuals involving 191,204.27 hectares area have successfully obtained MSPO certification.
He said, to support and assist the smallholders, the government through MPOB offers assistance covering certification fees, MSPO training, chemical storage solutions, and Personal Protective Equipment (PPE) to meet the MSPO certificate criteria.
The scheme also includes the signage for plantations and financial aid of RM200 for land title amendments.
“All these initiatives aim to ensure compliance with the MSPO standards, thus helping to increase the acceptance and marketability of palm oil produced by smallholders at the international level,” he said.
Chan in his speech said, the MPOB has also established the ‘30 Tonne Club’ which establish to recognise the smallholders who achieved annual yield of at least 30 tonne of Fresh Fruit Bunches (FFB) per hectare.
To date, 2,772 members have joined nationwide with 488 hailing from Sabah. This is a testament to the potential of smallholders to achieve high productivity through best practice.
He said, the government via MPOB will continue to intensify efforts to increase the involvement of smallholders in MSPO.
In this regard, all smallholders are urged to update their personal information with MPOB as accurate information is very important for the distribution of assistance and designing programmes that are appropriate to current needs.
In the meantime, Chan in his speech also mention the current situation of POIC Lahad Datu, an industrial hub established in 2005 to further bolster the state’s palm oil downstream industry.
To sustain investment momentum, opportunities in supporting industries as well as the development of new industries beyond the palm oil-based sector are also actively developed at POIC Lahad Datu.
He said, a total of 48 companies (39 local, nine foreign) were currently operating in POIC with a total investment value of RM2.386 billion and creating 1,950 job opportunities. POIC Lahad Datu is playing a vital role in boosting the socio-economic landscape of Lahad Datu.
“Covering an area of 4,400 acres, POIC Lahad Datu is equipped with a wide range of modern facilities and support infrastructure, including road networks, electricity and water supply, warehousing, and information and communications technology (ICT) services, with easy access to port facilities to support the overall development of POIC Lahad Datu,” he added.
