KUCHING: Palm oil has become Sarawak’s most valuable export while also transforming rural communities through infrastructure and job creation.
Permanent Secretary to the Ministry of Food Industry, Commodity and Regional Development, Datuk Sirai Daha, said the industry generated RM14.3 billion in 2023, contributing 10.9 per cent to the state’s total export value.
“In 2023, palm oil export value was just behind crude petroleum, but I believe it has now surpassed petroleum.
“This clearly shows how central palm oil has become to Sarawak’s growth,” he said when addressing the Sarawak Oil Palm Plantation Owners Association (SOPPOA) forum today.
He described palm oil as a pillar of Sarawak’s gross domestic product, securing foreign exchange earnings and creating thousands of jobs across the state, with 1.7 million hectares already planted and an additional 300,000 hectares of Native Customary Rights (NCR) land available for development.
Beyond its contribution to state coffers, Sirai emphasised that palm oil has transformed rural life.
Areas once isolated, without roads, electricity, or clean water, have seen rapid improvements with the establishment of plantations under both the Sarawak Land Consolidation and Rehabilitation Authority (SALCRA) and the private sector.
“Before oil palm, many rural villages had no basic amenities. Today, almost every settlement near plantations has road access and better facilities,” he said.
He acknowledged past tensions between local communities and plantation operators over road use but said these had been resolved through dialogue, with security arrangements in place to protect both sides.
“These plantation roads are now lifelines for rural connectivity,” he said, adding that the industry has become “deeply woven into the social fabric of the state”.
Sirai thanked SOPPOA and industry players for their contributions, urging them to continue adopting sustainability standards while supporting downstream activities to further add value to Sarawak’s crude palm oil exports.
“Palm oil is no longer just about export earnings. It is about people, connectivity, and empowerment for Sarawakians,” he stressed.
