KUCHING: Sarawak continues to defend its palm oil industry against strict regulations imposed by the European Union (EU), which demand proof that palm oil is not linked to deforestation, and restrict expansion of plantation areas.
Permanent Secretary to the Ministry of Food Industry, Commodity and Regional Development, Datuk Sirai Daha, said Sarawak has long engaged with EU representatives to explain that Native Customary Rights (NCR) land is agricultural land, not primary forest.
“When I first joined the ministry, we had to convince the EU that NCR land is secondary forest, already cleared for agriculture. They eventually accepted this and allowed expansion,” he said during the SOPPOA forum today.
However, he added that the EU later extended restrictions beyond palm oil to include crops such as cocoa, complicating the state’s agricultural plans.
“These shifting regulations make it difficult for Sarawak to plan long-term. We are repeatedly forced to explain that we are not engaging in deforestation but enhancing agricultural land,” he stressed.
Sirai said the state is determined to comply with international sustainability requirements, with certification standards such as the Malaysian Sustainable Palm Oil (MSPO) and the Roundtable on Sustainable Palm Oil (RSPO) now mandatory for producers to maintain access to global markets.
He acknowledged that regulations like the EU Deforestation Regulation place a heavy burden on producers and industry players but cannot be ignored if Sarawak wants to protect its market access.
“Sarawak is committed to sustainable practices. But at the same time, we must also protect the livelihoods of our rural communities who depend on palm oil,” he said.
He added that the state government has imposed its own restrictions, including a ban on large-scale plantations on state land, in line with policies introduced during the late Chief Minister Pehin Sri Adenan Satem’s administration.
