KUCHING: Sarawak Plantation Bhd
has fully rehabilitated some 6,000 ha of oil palm estates which were plagued with various inefficiencies.
Executive director Datuk Wong Kuo Hea said these “problematic” planted areas faced common issues such as stunted palm growth, inaccessibility due to high flooding, weeds and other upkeep matters.
“These areas were mostly young mature fields in critical need of rehabilitation.
“With the final balance of 20 ha normalised in 2025, the group has successfully completed the normalisation of all identified areas. These areas are expected to support ongoing production growth,” he said in the company’s 2025 annual report.
The Sarawak Plantation group had identified the 6,000 ha which needed enhancement to boost fresh fruit bunch (FFB) production, after Ta Ann Holdings Bhd emerged as the former’s largest shareholder with the acquisition of a 30.39% stake for RM169.9mil in 2018.
Simultaneously, Sarawak Plantation has made concrete efforts to recover some 6,400 ha of oil palm estates encumbered by local villagers through engagement.
“Over these past years, the group has managed to recover approximately 4,300 ha. The mature areas remaining encumbered are about 2,100 ha.
“Despite numerous challenges faced in recovering these encumbered areas, the group remains dedicated to recovering all or at least most of them,” said Wong, who is also Ta Ann managing director.
As of end-2025, the Sarawak Plantation group’s total immature fields stood at about 8,900 ha, accounting for about 30% of its total harvestable oil palm estates of 29,460 ha spread over 13 estates with a total land size of 42,745 ha.
Last year, Wong said the group incurred about RM68mil on bearer plants expenditure primarily related to the development, planting, field costs and other indirect costs for newly planted areas as well as upkeep of its existing immature areas.
Another RM9mil in capital expenditure was spent on the purchase of mobile equipment and other fixed assets to support operational needs.
Wong said since Sarawak Plantation had stopped new plantings on peatland several years ago as part of efforts to maintain sustainable and long-term oil palm cultivation, the group’s production growth, therefore, depends on boosting yields from its current and replanted estates.
In 2025, the group recorded a 7% growth in FFB production volume to 360,993 tonnes as compared to 337,661 tonnes in 2024. Year-on-year (y-o-y), FFB yield per ha grew by 13% to 17.93 tonnes per ha from 15.91 tonnes per ha.
Wong said this growth was primarily driven by the better performance of young and mature yields, coupled with the newly matured areas of 1,100 ha.
The group’s two oil palm mills produced 33,707 tonnes of crude palm oil (CPO), down 4% from 35,161 tonnes in 2024.
In terms of on-field mechanisation, Sarawak Plantation has deployed six FFB harvesting machines in certain estates to modernise harvesting activities and reduce dependency on labour. These machines, named “Lipan”, were launched in 2024 and equipped with wireless control, enabling operators to manage the fruit harvesting process easily and efficiently.
These six-wheeled machines have been adapted from logging operations and modified to suit the requirements for handling rugged and hilly terrain during the FFB evacuation process.
The company expects these mobile machines to serve the newly planted areas, which have been designed with mechanisation for future operations.
Meanwhile on its outlook, he said: “The group remains confident that its relatively young and prime mature fields, together with ongoing replanting initiatives, provide strong potential for production growth in the near term.
“Given its sound financial position and effective cost management strategies, the group is well positioned to undertake growth initiatives and expand into related businesses that complement or directly integrate with its core businesses.”
In its financial year 2025 (FY25), Sarawak Plantation posted a 15% jump in net profit to RM105.8mil (FY24: RM92mil) in tandem with an expansion in revenue to RM571.6mil (FY24: RM551.4mil).
Earnings per share rose to 38 sen from 33 sen y-o-y.
