KOTA KINABALU: Sabah has among the most smallholders achieving Malaysian Sustainable Palm Oil (MSPO) certification in the country as of April, says Datuk Seri Hajiji Noor (pic).
The Chief Minister said over 30,000 smallholders in the state had obtained MSPO certification, covering over 191,000ha and representing an achievement rate of 97.62% of total plantation area.
"This underscores our collective progress and the importance of continued collaboration between government agencies, industry players and smallholder communities," he said at the East Malaysia Palm Oil Forum (EMPOF2025) here on Thursday (Aug 21).
His speech was delivered by state Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.
Hajiji said amid global pressure for deforestation-free supply chains, Malaysia needed to advance its certification and traceability efforts to maintain recognition and credibility among key stakeholders, both domestically and internationally.
"In Sabah, we are making progress where about 97% of the planted area and over 92% in Sarawak are now certified under the MSPO.
"However, we must push towards 100% inclusion, particularly for Independent smallholders,” he said.
Sabah was aware of the challenges the industry faced and acknowledged the need for proactive and innovative actions to meet evolving global standards, ensure environmental integrity, and respond to market pressures, he added.
In this respect, Hajiji said the state government has adopted a transformative solution known as the Jurisdictional Approach for Sustainable Palm Oil (Jaspo).
Launched in 2015, Jaspo aims to achieve 100% certified sustainable palm oil production across the state by 2030.
Hajiji said this approach was not just administrative but a mechanism for governance that allowed all players in the value chain to work together under a unified framework.
"It aligns Sabah's ambitions with national and international standards such as MSPO, RSPO, and the EU Deforestation Regulation (EUDR), and ensures that no stakeholder is left behind, especially smallholders who account for over 27% of Sabah's production," Hajiji added.
Sabah, he said, has sustained its leadership with 1.48 million hectares under cultivation and annual output surpassing 4.2 million tonnes of crude palm oil (CPO).
He said Sabah and Sarawak together accounted for over 55% of the country's total oil palm plantation areas, which helped shape Malaysia's standing as the world's second-largest palm oil producer and a leading source of a sustainable and responsibly managed supply chain.
However, this success story did not happen overnight, but was the result of decades of hard work, resilience and collaboration across the supply chain from smallholders, millers, refiners to traders, researchers and policymakers, Hajiji noted.
"More importantly, it is a testament to our shared commitment to balancing economic development with environmental stewardship and social progress.
"Across Malaysia, the palm oil industry directly and indirectly sustains the livelihoods of more than 300,000 Malaysians and supports over 85,000 smallholders.
"Beyond economic figures, it has reshaped the rural landscape, bringing with it the vital infrastructure, from improved roads and schools to clinics and digital connectivity,” he said.
He urged all stakeholders to continue collaborating and championing innovation to uplift rural communities and preserve the environment.
"(This is) so that the legacy we leave behind is not only one of economic progress but of impactful and meaningful progress for the generations to come," he added.
