Sabah A Powerhouse In Palm Oil Industry With 4.5 Mln Tonnes CPO Produced In 2023 - Hajiji

KOTA KINABALU, Oct 28 (Bernama) -- Sabah remained the largest crude palm oil (CPO) producer in the country, with the production of 4.5 million tonnes in 2023 due to superior fruit yields and oil extraction rates, said Chief Minister Datuk Seri Hajiji Noor. 

He said that Sabah, as a powerhouse in Malaysia’s palm oil industry, needs to be ready and must introduce innovative approaches to help the industry achieve and meet the national and international certification requirements.

Hajiji said the state government is also committed to future-proofing the palm oil industry, which is Sabah’s most significant export commodity, contributing 22 per cent or RM6.22 billion to the state revenue from 2018 to 2023.

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“As we look to the future, innovation and sustainability must remain at the heart of our efforts.

“Sabah is already leveraging technology to boost productivity and reduce the environmental footprint of palm oil production,” he said during the World Palm Oil Conference 2024 here today.

Hajiji’s speech was delivered by Deputy Chief Minister I Datuk Seri Dr Jeffrey Kitingan, who is also Sabah Agriculture, Fisheries and Food Industry Minister.

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The Chief Minister said Sabah operates 128 mills across the state, with a capacity to process up to 34.7 million tonnes of fresh fruit bunches annually, while the oil extraction rate of 20.4 per cent is the highest in the country.

“Our industrial hubs are critical to sustaining growth.

“The Sabah government owns the 1,781-hectare Lahad Datu Palm Oil Industrial Cluster on the east coast of Sabah (to) support light, medium and heavy industry,” he said.

He noted 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 next year, he said.

Hajiji also called upon all stakeholders, investors, businesses and policymakers to join the state government in making Sabah the global hub for sustainable palm oil production.

“By investing in downstream processing, adopting advanced technologies, and upholding the highest sustainability standards, we can ensure that this vital industry continue to thrive while contributing to a greener, more prosperous future for all,” he said.

-- BERNAMA