Kota kinabalu: Sabah has emerged as Malaysia’s largest producer of crude palm oil (CPO) with an output of 4.27 million tonnes in 2024. This figure, released by the Ministry of Plantation and Commodities (MPIC), highlights Sabah’s significant contribution to the national CPO production, accounting for 22.1 percent of Malaysia’s total output.

According to BERNAMA News Agency, the MPIC provided this data in a written reply published on the Dewan Rakyat portal. The ministry detailed that Sabah’s oil palm plantation area extends over 1.48 million hectares, which constitutes approximately 26.43 percent of the nation’s total oil palm area. The state supports 129 operational mills, underscoring its pivotal role in the industry.

The MPIC’s response came following an inquiry by Datuk Suhaimi Nasir (BN-Libaran) concerning governmental efforts to enhance the downstream palm oil industry and reduce Sabah’s dependence on CPO exports. The ministry emphasized ongoing initiatives to decrease reliance on unsustainable CPO exports over the long term.

The government aims to not only reduce export dependency but also generate more employment opportunities for local communities. The MPIC affirmed its commitment to bolstering the downstream palm oil industry in Sabah, with a particular focus on biodiesel production to enhance the value of the country’s agri-commodity sector.

Currently, Sabah hosts three licensed biodiesel production plants: Genting Biorefinery Sdn Bhd, SPC Biodiesel Sdn Bhd, and Green Edible Oil Sdn Bhd. These facilities have a combined annual capacity of 400,000 tonnes and have created approximately 160 job opportunities for local residents.