KOTA KINABALU: Sabah understands the high stakes in the palm oil industry and is committed to future-proofing the sector, says Datuk Seri Hajiji Noor (pic).
The Chief Minister said the palm oil industry is Sabah’s most significant export commodity, contributing 22% or RM6.22bil to state revenue from 2018 to 2023.
“Sabah, as a powerhouse in Malaysia’s palm oil industry, is aware of the challenges to ensure the industry remains relevant in the future,” he said.
Hajiji said this during the World Palm Oil Conference 2024 - “Future-Proof The Palm Oil Industry - Enhancing Sustainability, Innovation and Growth” on Monday (Oct 28).
“Hence, the government needs to be ready and must introduce innovative approaches to help the industry achieve and meet national and international certification requirements,” he added.
Deputy Chief Minister and Agriculture, Fisheries and Food Industry Minister Datuk Seri Dr Jeffrey Kitingan delivered the Chief Minister’s speech.
Hajiji said that innovation and sustainability must remain at the heart of Sabah’s efforts as the state looks to the future.
He added that Sabah is already leveraging technology to boost productivity and reduce the environmental footprint of palm oil production.
At the same time, he added, precision agriculture, mechanisation, and advanced pest management techniques were among the innovations being implemented to enhance yields and sustainability.
In 2023, he said, Sabah produced 4.5 million tonnes of crude palm oil (CPO) and remained the largest CPO producer in the country due to superior fruit yields and oil extraction rates.
“We operate 128 mills across the state, with a capacity to process up to 34.7 million tonnes of fresh fruit bunches (FFB) annually.
"Our oil extraction rate (OER) of 20.4% is the highest in the country. Our industrial hubs are critical to sustaining this growth,” Hajiji said.
He added that Sabah’s palm oil industry has a pivotal role in reducing greenhouse gas emissions and supporting Malaysia’s goal of achieving net-zero emissions by 2050 in line with the National Energy Transition Roadmap.
Sabah contributed 25.75 million tonnes of biomass from palm oil milling and plantation activities alone, providing a tremendous opportunity for renewable energy and innovation last year, he added.
